Estate Planning

You’ve worked hard for the things you have — family, home, career. Protect them after your gone. Estate planning is an essential part of building a secure future for the people and organizations you care about most.

Estate planning is an investment you make in yourself, your family and the future. Unfortunately, the majority of Americans die without an estate plan. Some people are reluctant to contemplate their own deaths — not a pleasant subject. Others believe they don’t have sufficient assets to warrant the time and expense of planning.

Don’t make the same mistake. Proper estate planning ensures that your assets pass to your loved ones with the least amount of stress, expense and taxation as possible. And just as every individual is different, so too is every estate plan. We’re committed to designing a plan that meets your unique needs and those of your beneficiaries, including such key provisions as:

• A plan for the disposition of assets with the least tax liability
• A durable power of attorney to manage your finances without the expense or publicity of a guardianship hearing
• The naming of guardians to raise minor children
• The naming of individuals (or entities) to handle the minors’ assets
• Directions regarding health care or the naming of an agent to make health-care decisions in the event you cannot make those decisions yourself
• A plan for the succession or sale of a family business
• A charitable-giving plan
• A life insurance plan to support your family or provide liquidity to the estate (e.g., pay debts, taxes)

I don’t have an estate. Why do I need a will? If I don’t have a will, won’t my assets  go to my spouse and children anyway?

Many people are under the misguided belief that the law will take care of things in a satisfactory manner. Without proactive planning, you are relying on the state legislature to determine how your assets pass, to whom, and when. If a person dies without a will then all of his probate property (i.e., property for which there is no legally recognized death beneficiary designation) passes by the laws of intestacy. Each state has its own intestacy statutes. In addition to having potentially undesired results, relying on the laws of intestacy is the most costly and time-consuming means of passing  assets to your loved ones.

How often should I update my estate plan?

How often you need to update your estate plan depends largely on changes in your family, business and finances. If you answer yes to any of the following questions, it’s most likely time to review and revise  your plan to reflect your current circumstances.

• Have you lost contact with the people you named to serve as executor, attorney-in-fact, or health-care power of attorney?
• Have you lost contact with the people you named to serve as your children’s guardian? Are they older or in poor health? Are they no longer  part of your children’s lives?
• Has your net worth increased?
• Have you experience the birth of a new child?
• Has there been a change in your marital status?
• Have you acquired additional assets that are not titled in any trust you may have created?

How do we name a guardian for our children if my spouse and I die together? Must the guardian also inherit our assets?

Selecting a guardian for minor children is often a challenging process as there are many factors that must be considered before reaching a decision. Of primary concern is that the guardian and children have a close and loving relationship. In addition, parents should always consult with the prospective guardian to make sure that he or she is willing to serve as guardian. Guardians are typically named in the parents’ will. While a guardian may be entitled to reimbursement from the child’s assets for expenditures made on the child’s behalf, there is no requirement that guardians share in the inheritance. Parents frequently place assets in trust for a child’s benefit, naming a different individual to serve as trustee, since the qualities needed to raise a child and those skills necessary to manage financial matters are distinct.

If my spouse remarries after I die, how do I prevent my assets from passing to the new spouse and the new spouse’s children?

A common way to ensure that the children from the first marriage inherit property upon one parent’s death is to create a trust for the benefit of the children. These types of trusts are often created under the terms of the parent’s will. They can also be created during the parent’s lifetime.

What are my options for supporting a charity?

There are all sorts of factors that motivate charitable giving. The desire to benefit a particular cause or organization is paramount. However, there are also significant income, gift, and estate tax benefits related to charitable giving. Giving money to a needy family member is a generous act, but it will not qualify as a deductible charitable contribution unless the money is given to a charitable organization recognized by the Internal Revenue Service. The options are as varied as an individual’s objectives. They include the very simple option of writing a check to a recognized charitable organization to the more specialized types of gifts such as charitable remainder trusts.

What is a living will and why do I need one?

Generally, a living will outlines the basic medical treatment philosophy and desires of the person making the living will. It may also articulate at length and in specific detail the person’s wishes regarding the provision, withholding or withdrawal of any form of medical care, including life-sustaining treatment. A living will typically identifies an agent or “medical proxy,” a person who will make decisions regarding treatment or communicate to health care professionals in the event of incompetency or unconsciousness. It is important to have a living will because it enables a person to control the medical care they will receive during a terminal illness or if they become incompetent. The likelihood that health care providers will comply with the terms of a living will are enhanced if the directive complies with local laws.

What is a power of attorney and how is it used?

Comprehensive estate planning must always include planning for the consequences and issues that result from incapacity or a diminished ability to function. A power of attorney is one among a number of tools designed to deal with the problems associated with diminished capacity. A power of attorney is a written instrument by which one person, the “principal,” appoints another as her “agent” or “attorney-in-fact” and gives that person the authority to perform certain acts on behalf of the principal.