Estate Planning
1. Do I need an Estate Plan?

The Best Estate Plan Is To Spend It All

However, as a practical matter, most parents end up leaving a sizeable estate to their children. In fact Fidelity Investments estimates that parents will transfer $5 to $8 trillion to their children over the course of the next 40 years.  

Who Needs Estate Planning?

Almost every individual, regardless of the value of his or her estate, needs estate planning. If your estate has a small value, your estate planning may only focus upon who is to receive your property after your death. If your estate is larger, your attorney will discuss with you not only who is to receive your property upon your death, but also different ways to preserve your property for your heirs. For example, estate planning often involves planning to reduce or defer the amount of federal estate (death) taxes which otherwise might be payable on your death.

However, regardless of the size of your estate, you will want to designate who, in the event of your incapacity, is to manage your affairs, to care for you and to make health care decisions. You also will want to consider such alternatives as durable powers of attorney for health care and property and conservatorships of the person and estate. 

What Is Involved In Estate Planning?

The form of your estate plan will depend upon your particular circumstances. In planning your estate, your goals and wishes should be given the highest priority. In addition to your goals and wishes, you should consider your family and its needs and the nature and extent of your property. During the estate planning process, you will need to answer a number of important questions. Major questions concern who will receive your property upon your death and the manner in which your property will be distributed. Depending upon your circumstances, you should determine:

1. Who should administer your estate after your death?

2. Who should be the guardian of your children?

3. How can federal estate (death) and other taxes be minimized?

4. How will your executor or trustee pay for death taxes if any are due?

5. How should you and your spouse hold title to your assets?

6. If you cannot care for yourself, who do you want to take care of you?

7. If you cannot manage your estate, who do you want to do so?

8. Who should receive the proceeds of your life insurance or your retirement benefits?

9. How and when do you want your children or other heirs to inherit your property?

10. How do you plan for a handicapped child or heir?

11. How do you plan for your child's or grandchild's education?

12. How do you minimize death taxes?

13. Does a Living Trust offer asset protection benefits?

What Is Included In My Estate?

Your estate consists of all property or interests in property which you own. This means that the furniture which you own (regardless of whether or not you own your home or rent an apartment) is part of your estate. Your estate also may consist of money held in bank accounts, stocks or bonds, real property (including your home), life insurance or retirement benefits.

The value of your estate is equal to the "fair market value" of each asset that you own, minus your debts which include a mortgage on a home. In general, "fair market value" may be thought of as the present value of an asset or the cost of currently purchasing or otherwise acquiring an asset. In assisting you with your estate plan, your attorney will need to know about the property which you own and its value. The value of your estate is important in determining whether, and to what extent, your estate will be taxed after your death and the resources which you will have available in the event of your incapacity.

To help you with your estate planning, your lawyer also will want to know about your current financial situation and how your financial status might change in the future, particularly after you retire. Your lawyer should review your important personal papers and records, including any existing will, deed to real property, pre- or post-marital agreements and federal and state income tax returns. Your lawyer also will need to know about any pension and profit-sharing plans in which you participate, any business or insurance you own, and the mortgages and other debts which you may owe.

What Do I Bring To The First Meeting With My Attorney?

You should ask your attorney if he or she has an estate planning questionnaire to assist you.  In addition to filling out the questionnaire, you should bring copies of the following documents:

1. Copies of current wills and  trusts  

2. Copies of deeds to real property

3. Copies of Retirement Benefits

4. Life Insurance Information

5. Partnership Agreements

6. Shareholder Agreements

7. Buy-Sell Agreements

8. Operating Agreements - LLC

9. If you are a beneficiary of a trust, a copy of the trust

10. Names and address of persons whom you would like to be trustees, executors, powers of attorneys, and guardians

11. Name and address of your physician

12. Stock portfolio information

13. Long-term care insurance policy