Estate Planning
Everyone has an estate plan, whether intentional or by default.
If you
think you have no plan, because you have not made out a will or a trust,
you still have a plan--it is simply one that is dictated by the laws of the
state where you reside at your death.
People who die without wills or trusts are
said to die intestate. State law provides the rules of distribution
that must be followed when a person dies intestate. In most cases
intestate estates must be probated, which involves a court proceeding, and in
many cases state law may require a distribution that you would not want.
It is a
very good idea to avoid intestacy by having a will or a "living trust" that is
designed for your particular needs. In most cases a revocable "living" trust is
better than a will.
Proper Estate Planning
You should view estate planning as an ongoing process that evolves as
your needs, goals, and family change, as the laws change, and as new estate
planning tools and techniques are developed. It is a process of continually
evolving entrance, growth, maintenance, and exit strategies. It requires a
cooperative effort between you, your financial planner, and other appropriate
members of your estate planning "team," such as an attorney and a CPA. Proper planning
requires professional thoroughness which respects the overall well-being of you
and your family.
Your goals should include the following:
 | Your control of your assets during your life.
|
| A business exit strategy if you have an
ownership interest in a business. |
| Providing a foundation for your care and the
management of your assets for you and your family if you become disabled. |
| Protecting the assets that you leave to your
spouse and children from creditors and unscrupulous persons. |
| A plan of distribution that will leave your
assets to whom you want, when you want, and with whatever controls you want.
|
| Avoiding probate |
| Saving the greatest amount of taxes and post
death administrative costs possibly--not only in your own estate, but in the
estates of your spouse and your descendants. |
