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An updated, concise, well-drafted estate plan is one of the
greatest gifts you can give to your spouse, your children, and your
heirs. Have you ever thought about what would happen to your family
should you die or become disabled? Dying without an estate plan can
throw your heirs into a legal quagmire that can cost thousands of
dollars in legal fees, taxes and other costs that could have been
avoided with proper planning. In addition, for families with
children, a properly drafted and current will with a guardianship
appointment is critical. Without a will, your children’s future will
be left to the decision of the courts.
Estate planning is much more than drafting a will. It includes
instructions about asset distribution upon death; healthcare
decisions, such as withdrawals of life support and the appointment
of someone to make that decision; guardianship issues; and the very
difficult choice of who will care for your children if you die.
Income and estate tax issues and a host of other matters are also
addressed. Many of these issues must be dealt with regardless of the
size of one’s estate; estate planning is definitely not limited to
the rich. A well-crafted plan can give you and your family peace of
mind for a lifetime.
The basic estate plan starts with a simple will plus advance
directives to cover healthcare issues. If you have children, the
basic plan is modified to include the guardianship provisions that
will appoint someone to care for your children if you die. With a
larger estate, a more complex plan can be designed to incorporate a
dynasty trust for your children, which will ensure that your assets
will not go unmanaged and unaccounted for to the guardian. The trust
can also be designed to ensure that your children will not receive
an outright distribution of assets at the age of majority when many
young people may have a difficult time managing assets in a complex
investment arena. Finally, for the middle income to the very
wealthy, estate taxes can cripple your heirs; thus, tax planning is
essential to the smooth and efficient transfer of wealth between the
generations. Without proper planning, more than half of your estate
can go to the government in taxes and expenses. |
