Here is a quick mental 'exercise' for you to consider the importance of estate planning in your life.
The Process
Structure: Together we STRUCTURE your estate plan to fit your specific needs/desires, now and into the foreseeable future
Review: we REVIEW/EVALUATE the estate plan based on current law;
Adjust: we ALTER/ADJUST the estate plan based on any changes in “external” conditions (for example, changes in state, federal, tax laws) or “internal” changes (for example, a marriage, birth, death, or divorce.)
The following are some thought-provoking exercises for the first part of structuring your estate plan.
I have used a similar (but more detailed) model to begin the estate planning process with my clients.
Within the subject areas, consider how you would “rate/rank” the item - how important is it to you, now or in the future; for example is “appointing an agent to make your health care decisions” either: very significant to you? of average importance? not likely to be of any concern?
So…let’s begin,
Subject Area No. 1: In The Event of Permanent or Temporary Incapacity (how would you rate the importance to you of the following items?)
Appointing an agent to manage your financial affairs
Appointing an agent to make your health care decisions
Providing use of personal assets to support your partner/family
Continuing or starting a lifetime gift program
Subject Area No.2: Specific and Cash Gifts (how would you rate the importance to you of the following items?)
Providing gifts of your personal property to specific family members
Providing cash gifts (to family, friends, charities)
Providing gifts of your real estate or other property; preserving family property rights Providing for the care of pet(s)
Developing a charitable gift plan e.g. supporting a university, a “cause”, or an institution
Subject Area No. 3: Spouse/Partner (how would you rate the importance to you of the following items?)
Providing for your spouse/partner
Providing a trust for spouse to manage assets/address remarriage/protect assets
Giving spouse the right to redirect trust assets as they determine at their death e.g. after your death, your spouse dies. Has he/she had been given “right” to allocate/redirect remainder of trust assets to anyone they wish (in other words - they had not been prevented from “re-allocating” assets)
Subject Area No. 4: Children/Descendants (how would you rate the importance to you of the following items?)
Providing for your children/grandchildren
Treating all the children/grandchildren of your marriage equally
Planning for the special needs of a family member
Providing for step-children as your own children
Creating a trust for children in order to manage/protect assets
Giving children the right to redirect trust assets upon their death e.g. after your death, one of your children dies; they may allocate/redirect any remainder of trust assets to anyone they wish
Providing for transfer of assets (at your death) outright to grandchildren
Creating a trust for grandchildren
Preventing transfer of assets to spouses of children/grandchildren (e.g. your son Joe is married to Mary. If Joe were to pre-decease Mary, you do not wish Mary to inherit certain assets/property)
Providing for payout of benefits over life expectancy of your beneficiary
Paying retirement plan benefits into a trust for a beneficiary
Providing for the education of children/grandchildren
Protecting assets from a 'spendthrift' beneficiary
Subject Area No. 5: Tax Planning (how would you rate the following items?)
Minimizing federal/state taxes you or your heirs will have to pay
Reducing federal/state income taxes you currently pay
Tax Planning for your foreign assets
Yes or No: Are you using the services of a tax advisor/financial advisor? Have you considered using the services of a financial planner?
Subject Area No. 6: Medical (These are general questions that probably require a ‘yes’ or ‘no’ response).
Do you wish to become an organ donor?
Do you have a medical power of attorney?
Do you have a current life-limiting medical condition?
Does your spouse/child have special needs?
Would you want Nutrition/hydration life support administered if your death were imminent?
Subject Area No.7: General (Questions that require only a “yes or no” response)
Do you own your own business? Do you have a succession plan in place?
Are you a major shareholder in a business?
Do you have any beneficiaries other than spouse/partner/children/grandchildren?
Are you a citizen of the United States? Is your spouse a citizen of the United States?
Do any of your possible beneficiaries live outside the United States?
Do any family members/friends/business associations owe you money?
Have you signed any intra family loans or co- signed a loan for anyone?
Do you have significant bitcoin accounts?
Have you made other wills or codicils to an existing will?
Do you have any deceased children? Was the child married? Did they have children?
Have you/your spouse/partner previously completed any other estate planning documents, for example will, trust?
Have you completed beneficiary forms for financial accounts?
Are you inquiring about a prenuptial agreement/post-nuptial agreement or an amendment to an existing marital agreement?
Are there spousal support documents from a divorce?
Do you plan to live/reside/domicile outside the United States? Have foreign investments?
Finally:
The above are not the only considerations of an estate plan. There are many other questions, unique to each individual/situation.
Having read through the major subject areas, you can begin to understand the process of estate planning.
It begins with the here and now and develops into a plan for the foreseeable future.
The Plan develops from answers to very specific questions (your part) and the legal and financial consequences (interpretation) of your responses (my part).
The individualized plan evolves into a legal document and a specific process to both allocate your assets as you wish and to preserve your assets into the future.
Contact me with any questions or to discuss your individual estate planning needs.
Working To Preserve Your Wealth and Protect Your Future...in a Constantly Changing World
Please read my full Disclaimer and How I Can Help You
Visit my website:
www. attorneybarbaradalvano.weebly.com for additional articles; information about free webinars and printable infographics