The goal of estate planning is to ensure that in the event of incapacity or death, your financial and personal matters are handled responsibly and in accordance with your objectives at the lowest possible financial and emotional cost.
If your estate plan is not well conceived and up-to-date, then:
- Property can pass to the wrong beneficiaries; for example, under the laws of intestacy, the state in which you are domiciled will determine how your assets will be distributed.
- Property can pass in unsuitable form; for example, directly to minors or handicapped children who are unable to manage the funds and where the gift may result in disqualification from benefits.
- The estate can be subject to unnecessarily high estate and income taxes and other costs.
- Assets may be exhausted to pay for long-term care costs and other expenses.
- Lack of liquidity may force the sale of assets such as real estate and the family business.
- Extensive and protracted lawsuits may result concerning issues such as who will manage the assets and how the estate is to be handled and distributed.
Below are some of the considerations and matters which an attorney should address as part of a comprehensive estate plan for you:
- Review the ownership and nature of your assets. We normally forward an Estate Planning Questionnaire for you to complete which includes an itemization of your assets. As part of the estate plan, we will make recommendations regarding restructuring of assets, changing beneficiary designations on your life insurance, IRA's and retirement plans to coordinate with the Will and your other estate planning documents, and to insure that the estate plan will work as designed.
- Prepare an estate tax analysis and project potential estate taxes payable on each death given your current estate plan. We then outline various strategies and techniques to minimize estate and gift taxes within your overall planning objectives. Strategies to save estate taxes may include establishing a disclaimer trust or credit shelter trust (also known as bypass or family trust) in your Will; gifting between spouses in order to even out estates; gifting to the next generation; the establishing of family limited partnerships or limited liability companies; the establishing of various irrevocable trusts; charitable giving strategies.
- Identify and explore your estate planning objectives and concerns.
- Determine special problems such as second marriage, marital difficulties, disabled or handicapped children, succession issues regarding a business or professional practice, cash and liquidity problems, or financial concerns.
- Determine to whom and in what form property should pass, whether directly to the beneficiary or in trust; if in trust, we will help determine who should be the trustee and how and when the property should be distributed by the trustee.
- Insure that IRA's and retirement plan benefits are structured to preserve income tax deferral for as long as possible.
- Outline strategies for saving property from being exhausted for nursing home expenses and other health care costs.
- Develop a plan for charitable giving.
- Protect assets from potential liabilities.
- Design a plan for funding college education.
- View special concerns relating to the ownership of a professional practice, closely held business or real estate, including liquidity issues, business succession planning, avoiding fire sale liquidation, and review and establish up-to-date and workable buy-sell and other owner agreements.
As part of the estate planning process, we also prepare Wills and other planning instruments such as:
- Durable Powers of Attorney (purpose to provide for continued management of assets, particularly in the event of disability).
- Health Care Proxies and Living Wills (purpose to name someone to make health care decisions in the event you are unable to do so; the Living Will is a declaration of intent in the event physicians have determined there is no expectation of recovery).
- Revocable Living Trust (purpose to avoid probate or to establish an asset investment and management vehicle).
- Irrevocable Life Insurance Trust (purpose to save estate taxes).
- Personal Residence Trust (purpose to save estate taxes).
- Supplemental Needs Trust (purpose to protect assets from creditors and insure beneficiary qualifies for Medicaid or other governmental benefits).
- Charitable Lead or Charitable Remainder Trust (purpose to benefit charity and save estate taxes and income taxes).
- Buy-Sell Agreements and Other Agreements for Owners of a Professional Practice or Closely Held Business (purpose to provide clear and unambiguous direction in the event of death, disability or other events).
- Standby Guardianship (purpose to name guardian for minor children or disabled persons in the event of disability of the parent or other guardian).
- Pre-nuptial or Marital Agreement (purpose to insure estate plan works as designed and written and is not subject to override later under state laws concerning marital rights).
- Beneficiary Designations of IRA's and Retirement Plans (purpose to insure these assets pass in accordance with planning objectives and to maximize income tax deferral).
Working together to identify and meet your objectives and to review and understand your assets, income and family circumstances, the Lacy Katzen LLP attorneys will develop a comprehensive estate plan for you using various strategies and techniques to insure that your assets are managed and protected in the most suitable way for you and your intended beneficiaries.