What is estate planning?
Estate planning allows you to organize your affairs during your lifetime to provide for yourself and your heirs. Documents including Wills, Trusts, Financial Powers of Attorney and Advanced Health Care Directives are used in the process. An estate plan takes into consideration many issues such as unique family dynamics, income and estate tax reduction and estate liability. When an estate plan is properly executed, it allows for the orderly management of assets in the event of incapacity and the efficient and cost effective disposition of assets following death. An estate plan is best handled by a knowledgeable licensed attorney. Estate planning attorneys do not sell insurance, annuities, securities or real estate. Estate planning is not financial planning. This means an estate planning attorney will not tell you where or how to invest your money.
Estate planning is a process to consider alternatives for, to think through, and to set up legally effective arrangements that would meet your specific wishes if something happens to you or those you care about. Good estate planning is more than just a simple Will. Estate planning also typically minimizes potential taxes and fees, and sets up contingency planning to make sure your wishes regarding health care treatment are followed.
Estate planning is the creation of a definite plan for managing your wealth while you are alive, and distributing your assets after your death. An estate means all assets of any value that you own, including real property, business interests, investments, insurance proceeds, personal property, and personal effects. These assets may be owned separately, or jointly with others. Below are some examples of how married couples often hold title to property: • Separate Property: the entire interest is owned by only one of the spouses. The property was generally acquired prior to marriage, or was a gift or inheritance to one spouse alone during the marriage. • Joint Tenancy: the interest in the property is owned by both spouses. The surviving spouse acquires the entire interest upon the death of the other joint tenant spouse. What am I attempting to avoid with estate planning? There are three principal obstacles in planning our estates: • Living Probate – the court proceeding to manage a perso
