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Estate Planning is the very cornerstone of activities for Kelley Insurance & Financial. Therefore, our focus in this area is second to none. What we have found over the years is most people's 'Estate Plan' doesn't fail, we find most people fail to have an Estate Plan. We generally also see the same mistakes made time after time. Therefore we have made a list of the top Estate Planning goof ups. We find that a lot of people would rather 'put off' Estate Planning until another time, as it is not the most comfortable topic of discussion and there are decisions that need to be made which are sometimes difficult. However, the consequences of doing nothing can be a real disaster!
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| Effective Estate Planning generally starts with getting all your facts and goals in order and a comprehensive inventory of your assets (including ownership and asset cost basis). It is very important to start with all the facts, so the right recommendations are ultimately made. Therefore, the first service we provide is an Estate inventory, where all your information is collected and input into a computer program, which calculates Estate shrinkage due to Estate taxes and probate fees. We not only look at today's liability; the computer program also projects the growth of your Estate assuming the annual percentage increase you stipulate for your Personalty and Real property. This gives you a realistic snapshot of your Estate shrinkage at various future dates. The program can also compare different planning strategies, so you can see the effect they would have on your Estate if you used the technique. This is a powerful tool and we offer this analysis free of charge and without obligation, compared to our competitors whom generally charge a substantial fee for this analysis. |
| No two Estate Plans are exactly the same, as everyone's financial and family structure are different. For instance people who have children from a previous marriage sometimes want to make special arrangements for the ultimate return of their assets to their children after their spouses death by utilizing a QTIP Trust. Individuals that own a family business have many special planning needs, especially if a family member wishes to continue the business. These are just a few examples of serious planning needs which if not addressed and worked out beforehand can cause a lot of family contention, unnecessary taxes, costs, legal expense and trouble. |
Concerns Before Death - The following are three important Estate Planning issues that should be considered for your own benefit (during your lifetime), as much as for your heirs.
- Titling your property in the best manner
- Protection of your property from the legal repercussions of your own physical and/or mental incapacitation
- Protecting your estate from divorce problems, the expenses of providing long term care, lawsuits, judgments and liens (including Medicaid due to a State nursing home confinement).
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| This third issue is known more simply as 'asset protection'. The best property title methods and asset protection are corresponding items. Correctly and fully addressing these issues is vital to protecting your estate, so that the assets you worked so hard to accumulate during your lifetime will be there for both you and your heirs! And coincidentally, proper planning in this area will avoid probate as well. |
| Estate Transfer & Heir Planning - One of the big benefits of doing Estate Planning prior to death is the ability to name your heirs, specify the share of your estate they will receive, and dictate the manner and timing that they get their share. Generally speaking this part of estate planning may be done with either a Will or a Trust. But it takes a Revocable Trust trust to avoid Probate, protect the estate from judgments, liens and Medicaid. |
Some 'heir planning' issues to consider are as follows:
- Whether the heirs are to receive equal or unequal shares. There are several factors that can cause the Estate owners to vary the share sizes they leave to each heir.
- At what age should the heirs get their share, or should their share be paid in several installments at different age's?
- How to equalize the inheritance between all your heirs, when you are leaving specific property to certain heirs such as the family business or home.
- Whether or not to omit or disinherit any heirs.
- How to deal with situations where a married couple each have children from former marriages but they want to setup one comprehensive Estate plan. This may require dealing with issues such as one spouse having more children, or one spouse having made a larger contribution to the Estate.
- Dealing with a marriage after you have built your own separate estate, which you may want your spouse to benefit from for the remainder of their life. However after your spouses death you want the remainder of the estate to go to your heirs, not your spouse's.
- What to do in a case where a child has reckless spending habits and the parents fear that child will blow the inheritance quickly.
- How to deal with mentally or physically disabled heirs.
- Assuring that the heirs will use their share to pay for a college education, and do so in a prudent manner.
- What happens if an heir predeceases you?
- How to deal with specific gifts to special heirs, such as grandchildren, nieces and nephews, charities, etc.
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| Let's go over a few basics: |
| What is an Estate - All the property owned by an individual prior to the distribution of the property under the terms of a Will, Trust or State Laws. An individual's Estate includes all assets and liabilities. |
What Property is Part of the Estate - Property included in an Estate is either Real or Personal. Real property is real estate, and personal property is everything else. Personal property includes physical assets such as automobiles, boats, RV's, equipment, jewelry, artwork, household items, etc.
Personal property also includes financial property such as retirement accounts, securities, notes or loans receivable, bank accounts, cash and insurance policies. Retirement accounts can really be a problem to plan for, as income taxes will need to be paid on the asset along with possibly Estate Taxes, which could take over 80% of the asset without proper planning! Also included is any Business Interest, which can have very special concerns regarding any 'Business Continuation or Succession Planning'.
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What is Estate Planning - Planning the orderly control and management of one’s assets, with arrangements for the eventual transfer and distribution of those assets to the chosen heirs with as little complication and expense as possible. Maximizing the families inheritance and and minimizing Estate Shrinkage.
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Why Do Estate Planning - We need to do estate planning to avoid dying 'intestate'. Dying intestate means dying without having created either a Will or a Trust with instructions for passing your Estate on to your heirs. Dying intestate is like taking your property and attempting to throw it to your heirs on the other side of a pit filled with problems. Without proper planning, these problems (probate, creditors, legal and accounting fees, Income and Estate taxes, etc.) can shrink the value of your Estate considerably. Effective Estate Planning builds a bridge over this problem pit, so that your assets can safely pass to your heirs with minimal shrinkage.
Below you will find links on various Estate Planning topics and techniques. You may click the links in order to view your selection:
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| Kelley Insurance & Financial has developed the most competitive product Solutions for your Estate Planning needs. We also have established relationships with top Metro area law firms, specializing in Advanced Estate Planning so that your Estate Plan is properly coordinated. In addition to providing product Solutions, many times our function is to orchestrate activities between a 'team of professionals' such as Attorneys, CPA's and Trust Officers, which is necessary to accomplish a complete Estate plan. |
| Call our office today and schedule a review of your situation and be certain your Estate Plan is current and that you have taken advantage of all possible planning techniques to maximize your families interest and minimize Estate shrinkage. So that the ones you care about and have worked so hard for receive the legacy you intend for them to have. |
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