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-Financial
Planning-
The preparation for the orderly
administration and disbursement of a person's estate. The
preparation includes taking actions that will minimize taxes
and distribute assets to the appropriate heirs. – Dictionary.com
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Asset
Protection
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Discussion Forums
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It is important to protect the assets
that you have acquired learn how an estate plan can
benefit you. Click
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Financial
Planning Discussion
Discussion of Financial planning.
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All Estate Planning information is brought to you by The
Law Office of Heidi Jason. Let the Law
Office of Heidi Jason "create more certainty in your future, whether for your business or your family, by helping you establish systems and
develop plans that help you avoid or diminish problems."
-Heidi Jason Esq.
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Estate Planning
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What is an Estate Plan?
It is a written expression of how you want your assets to be owned, managed and preserved during your lifetime and how you want them disposed of upon your death. Planning allows you to fashion your estate in a way that incurs the least possible taxes and other costs, as well as giving you control of the distribution of your assets.
Do I have an estate?
Yes, if you own anything. Your estate consists of real and personal property in which you have a right, title, or interest, and includes all of your assets and liabilities.
What will happen to my estate when I die?
It depends. If you have a will or trust, your estate will be distributed according to your wishes, as expressed in that instrument. But that’s the easy answer, and probably a good reason to create a will.
If you don’t have a will, your estate will be distributed according to intestate laws. That means it still depends – on whether you are married, have children, etc.
How much is my estate worth?
Your estate includes your obvious assets, such as your home and money, and not-so-obvious assets like the value of term life-insurance, minus any liabilities, such as mortgages, liens or other debts. To get an idea of the value of your estate, complete the
Estate Value
Worksheet.
Why does the value of my estate matter?
The most important reason is that, in 2006, estates worth more than $2 million will owe a federal estate tax upon the death of the owner. An estate plan can establish mechanisms to reduce or eliminate this tax.
Additionally, the costs of probating or administering an estate are usually higher for estates that are worth more because of more complicated finances. Again, planning can help prevent certain costs and reduce others.
What if I own everything with my spouse?
You and your spouse each have separate estates, even if you own everything jointly. To get a better feel for this, complete the Asset Worksheet. Despite having separate estates, you should calculate the value of your spouse’s estate when considering the value of yours. Because the surviving spouse will inherit all or a large percentage of the other’s estate, your estate could substantially increase in value if your spouse dies. If you have not planned for this “total” estate (your estate combined with your spouse’s), you may suddenly have negative tax consequences and other implications upon your passing.
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