 LegacyBack to Home Back to SNEC Information Have You Planned by Not Planning? Why do people neglect the right and responsibility of making their wills and other estate plans?. Some believe they are too young, not wealthy enough, or that it will cost too much. Most often, however, estate plans simply get lost in the shuffle and are put off until it's too late. Whether you have an estate plan or not, instructions are in place to direct the disposal of your property. In the absence of a valid will, for example, state laws distribute property in specified portions among relatives, regardless of what your wishes may have been. Unfortunately; these "laws of descent and distribution" serve as wills for over half of the American population. Your loved ones come first For some people, a "state made" will may be enough. But for most, whether they are wealthy or of modest means, it is important to exercise their right to plan. When properly drafted by a qualified attorney, a will minimizes estate settlement costs and taxes, arranges for your property to be managed as you want, and provides for your spouse, children, friends, and others you wish to remember. A guardian can also be suggested for minor children. Philanthropic wishes Charitable bequests also find a place in the wills of many who wish to lend support beyond their lifetimes. Giving by will can be a flexible way to participate in the future after your family's needs have been met. Quite simply, your will and other plans are personal statements. Having earned your property; you have the right to distribute it after you no longer need it. Plan today, however, so you will be the one who does your planning. Where Do I Begin My Plan? Perhaps the most important part of will and estate planning is taking the first steps. Putting in writing an outline of your assets and goals is for many people the best place to start. Committing wishes to paper can make them more attainable. Writing a thoughtful outline of your estate can save you money, too. Your attorney can more quickly prepare your will with the necessary information about your circumstances. Since attorneys charge for their time, professional fees can thus be less. Keeping in mind the "Four Ps" of estate planning will help you as you make your list: People: First, write down the names of the people for whom you want to plan. They might include family members, such as a spouse, children, grandchildren, close friends, and employees. Property: Second, list all the property you own. Besides cash, note other property; such as real estate, stocks, automobiles, life insurance, investments, and collections of value. Try to estimate the dollar value and the cost of all your property; Show any income it produces. Plans: The third "P" will be your plans for matching people and property. List which property you want to go to each person named. You may also consider charitable bequests to organizations you have supported. Planners: Finally, list the planners you will need to put your plans in action. An attorney should be involved, and possibly a CPA. Your bank and life insurance professionals, investment advisors, and representatives of the charitable institutions and organizations you wish to remember may also take part. You are now ready to meet with your attorney, who will prepare a draft of your will and other necessary plans for your approval. Once all details are settled, your will and related documents are ready for signing. Make an appointment today, and discover the peace of mind provided by a well-planned estate. Charitable Gifts and Wills Charitable bequests offer a way to provide lasting support for institutions and organizations that outlive us all. They play key roles in many people's estate plans, helping them make "gifts of a lifetime," as well as avoid estate taxes and conserve more of their estate for family members. Some points to remember:
Changing Times May Require Changes in Plans Whether you know it or not your will may have changed. Besides changes in your life, federal or state estate tax law changes or the performance of the economy may make it necessary to revise even the most well-drafted plans. Lawmakers have impact Widely publicized gift and estate tax changes were announced in 1997. These measures affecting gift and estate planning provide ample reasons to review and revise your will or other estate plans. Don't assume you'll hear about every change in the laws that may affect your plans. Regular reviews of your will and other plans with your attorney are the best way to make sure your plans keep up with the times. Inflation plays a role A will drawn 10 or 15 years ago may include provisions suited to an estate much smaller than your present holdings. Many people are surprised at how much the value of their estates has grown due to inflation and investment gains. All forms of property can be affected: stocks, bonds, real estate, personal property, etc. Such an increase could boost your total estate above the threshold at which federal estate tax begins to be levied. This could call for major revisions in your will and other estate plans. Estates can drop in value as well. A downturn in stock or real estate market performance, for example, can leave some people with less than when they originally made their plans. If You’ve Already Made Your Will . . . Congratulations! But does it need to be revised? Ask yourself: Is my executor still appropriate and willing to serve?
Does my will still meet my family's needs, given any births, marriages, or deaths that have occurred?
Does my will address the needs of my children or parents who would require care in my absence?
Has my attorney reviewed my will in recent years so that my plans reflect current tax laws?
Does my estate plan provide for my favorite charitable organizations?
If you answered No to any questions, you may wish to review your plans. They may need to be altered to serve you as well as possible. Reducing Probate Costs Through proper planning, it is possible to reduce the costs of settling an estate. Here are a few of the ways to help speed up the process of property distribution while minimizing expense:
Planning for Incapacity Apart of the estate planning process, consider two other documents that can help make sure your wishes are met. A "power of attorney" can name a person or persons you wish to handle your financial affairs should you become incapacitated or simply prefer that others manage your assets. A "living will" can record your wishes about extraordinary medical care and life support measures. State laws govern powers of attorney and living wills. Ask your attorney and other appropriate advisors for options. We will be pleased to discuss any charitable provisions you may wish to make. For further information, contact: Robert Daum |