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Estate Planning is Wealth Transfer Planning

Wills

     A carefully-drafted will helps avoid family conflict and costly disputes. Your will is a legal document by which you designate the persons who will receive the assets you own after your death. It also allow you to name a personal representative (formerly known as an executor) to manage the administration of your estate. Lastly, and most importantly, it is where you will designate a guardian and conservator for your minor children. 

     A will must be executed in the presence of two witnesses. A properly executed will in one state will be valid in any other state where death may occur. However, a will does not override a beneficiary designation under a life insurance policy, retirement plan, or a joint form of ownership. Many people find out too late that a family member’s self-drafted will does not carry out that person’s wishes. That is why it is important to have an estate planning attorney assist you in drafting and executing your will.

     A Will based estate plan will usually include a Durable Power of Attorney and an Advance Medical Directive.

Revocable ("Living") Trusts

     Revocable trusts are important estate planning tools used to minimize and defer estate taxes and bypass the cost of probate. These trusts may be amended or revoked at any time during your life. Typically, the grantor (the person setting up the trust) of the revocable trust will also be the initial trustee. Once the you, the grantor, become incapacitated or die, the successor trustee will take over the trust administration. The trust can be used to take care of your during yourtime of incapacity without the need for an expensive court mandated conservatorship.

Irrevocable Trusts

     If you have a larger estate, you may desire to transfer some assets into an irrevocable trust. With the irrevocable trust, assets are set aside for specific beneficiaries and are not accessible to you once contributed. An irrevocable trust offers the opportunity to take advantage of lifetime gifting and reducing the size of your taxable estate. it can also provide creditor protection for your beneficiaries.

     Because irrevocable trusts are difficult or impossible to change, careful consideration and legal advice is vital before setting up this type of trust.

Insurance Planning & Life Insurance Trusts

     One type of an irrevocable trust is an irrevocable life insurance trust (ILIT) is designed to be the owner and beneficiary of a life insurance policy. Under current tax law, if your transfer an insurance policy to an irrevocable trust and the trust is the named beneficiary, the proceeds will not be includible in your estate for federal or state estate tax purposes; provided that you survive for three years after the date the existing policy is assigned to the trust. Any new policies purchased directly by the trust will not be includible in your estate.

Special Needs Trusts

     Special needs trusts (also known as supplemental needs trusts) enable families to leave money and other assets to disabled dependents without jeopardizing the government benefits such as Medicaid, Supplemental Security Income (SSI) or public housing to which those loved ones by be entitled.

Business Succession Planning

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