Estate Planning
Regardless of wealth everyone has an estate. An estate
consists of all the property a person owns or controls whether in his or her sole name, held in a partnership, in a joint
ownership arrangement, or through a trust. This includes; real property, personal
property, businesses, life insurance, pension benefits, 401(k)’s and all debts and obligations owed to you by others.
Given that everyone has an estate, popular opinion states that everyone should do some sort of estate
planning. The objective of an estate plan is to protect your assets and to make
sure your instructions are followed should you become permanently disabled or die. An Estate Plan provides for the dispositions
for your assets upon your death and minimizes the amount of tax levied upon your estate. It provides administration and protection
of your assets during a lifetime and for decision-making in the event of a disabling illness. Estate Plans also prepare for
the security of your dependents and makes distributions to them.
Common Estate Planning Goals
- Minimize
death expense
- Avoid
death tax
- Get
assets to proper people
- Business
survival probate
- Ease
burden to heirs
Whoever you are, whether a young single adult,
a young married couple with children or a senior citizen, an Estate Plan may include some or all of the following:
- Wills
and Trusts
- Living
Will
- Health
Care Power of Attorney
- Durable
Power of Attorney
- Life
Insurance
- Disability
and Long-term Care Insurance
- Life
Insurance and Trust (depending on size of estate)
- Buy
Sell Agreements
There are many self-help guides to drafting wills
and trusts and to avoiding estate taxes. There are also numerous do-it-yourself kits and pre-printed forms. The problem with
these do-it-yourself items is that they quickly become outdated. Estate Planning and Elder Law attorneys are trained and experienced
with wills, trusts, powers of attorney, living wills and the intricacies of estate taxes. They may recommend accounting services,
financial planners, or an insurance purchase. Since they don’t sell these
services or products, their advice is more likely to be unbiased.
