What is Estate Planning?
Estate planning involves identifying goals and making use of certain tools to accomplish those goals.
Estate planning is a natural extension of the financial planning families use to create and preserve wealth.
WHY ESTATE PLANNING?
Estate planning helps you take care of your beneficiaries and also of yourself. Controlling to whom assets will go after death is one objective, but it is not the only one.
WHY ESTATE PLANNING?
01: ASSET DIVISION Determining how to divide your estate among your beneficiaries.
02: RETIREMENT Planning for retirement and the potential need for long-term care.
WHY ESTATE PLANNING?
03: WEALTH PRESERVATION Reducing your tax burden and protecting your assets from creditors and disputes.
04: EXERCISING YOUR RIGHTS Controlling what is yours, including your resources and your own care.
How Do I Get Started Creating an Estate Plan?
To apply the general goals of estate planning to your individual needs, you will first want to make a thorough inventory of your assets.
GETTING STARTED WITH ESTATE PLANNING
01: MAKE A THOROUGH ACCOUNT Tally the fair market value of everything you own, including liquid and non-liquid assets.
02: CONSIDER OWNERSHIP You must consider how certain assets are titled to determine how they will be passed on.
A will is a foundational estate planning document that directs property distribution. Without a will you leave your estate plan to the government.
GETTING STARTED WITH ESTATE PLANNING
GETTING STARTED WITH ESTATE PLANNING
You make the decisions. State law provides a single set of rules for estates without a will.
You designate executors and guardians. Alternatively, the state appoints an administrator.
You can engage in tax planning. A will may help you avoid estate taxes.
Using Trusts in Estate Planning
Trusts are an extremely useful tool for estate planning and for the management of assets in special circumstances.
A trust is a relationship in which one party holds property for the benefit of another.
TRUSTS AND ESTATE PLANNING
TRUSTS AND ESTATE PLANNING
A testamentary trust goes into effect after you die. Such a trust can provide income for beneficiaries who may be unable to manage a large lump sum of money.
TRUSTS AND ESTATE PLANNING
A living trust, or inter vivos trust, goes into effect while you are alive. You can designate yourself as both trustee and beneficiary and maintain complete control over the assets.
TRUSTS AND ESTATE PLANNING
The trust can designate a successor trustee who can step in to manage your affairs for your benefit if you become incapacitated.
When you die, the successor trustee will distribute your assets according to the instructions in the trust document.
Estate planning can be complex, and it may seem overwhelming before you begin. The estate planning attorneys at Littman Krooks are your partners throughout this process.
We take pride in helping you create a plan that will protect your family's future.