Planning Your Estate

     Many people avoid dealing with issues involving wills and estate planning  because of the apparent complexity of the subject matter. While it is true that estate planning is complicated and involves many disciplines, an organized approach can greatly simplify the process of planning ones estate.

Where to Begin

     Begin with a clear statement of your goals and objectives. Is your principle concern providing for the care of minor children? Who do you want to receive your property at death? What is the best way to provide for a surviving spouse? Is there a business interest or other property that needs special consideration? What is the best way to minimize inheritance taxes? What about disability?
Once you have thought through your goals, it is time to select the advisors who will assist you in the planning process. Often an attorney is the central figure in the planning process, but you may wish to consult a trusted financial advisor or accountant, particularly if a business is involved. Insurance professionals have many resources that can be helpful in tax planning and estimating cash needs of your estate.

Your Personal Information

     Personal information about you and your spouse and children needs to be provided to your attorney to assist in planning your estate. Your assets needs to be listed and valued, and decisions need to be made about your choices for executor, and, where applicable, a trustee and a guardian for any minor children. Your attorney or advisor will often supply you with a worksheet to assist you in gathering the specific information about your assets and other affairs needed for planning.

The Initial Meeting

     The process usually begins with a call to your attorney to schedule the initial conference. At that meeting, you will review your personal and financial information and discuss your goals with your planner. Tax and insurance aspects of your estate will be evaluated and discussed, and you can normally expect to receive a recommendation as to the general form that your plan will take.

The Plan

     One of the goals of the estate planner is to avoid probate of your estate upon death, if that is possible. Not every estate needs to go through the costly and time consuming process of probate. Often for smaller estates, probate can be avoided altogether by the use of "pay on death" accounts and joint tenancies. In these cases, a will is prepared, but it probably will not be entered into probate, unless the estate needs to be opened for other reasons, such as claims arising from an accidental death. In more complex situations, the attorney may recommend a so-called "living trust" to avoid probate.
Trusts are also often used as part of a plan in order to accomplish complex instructions or as a means to provide for minor children and other beneficiaries with special needs. Trusts are used in larger estates to minimize the estate tax burden, which can be as high as 55%. In some cases, charitable trusts are desired. Of course, consideration is given to life insurance and liquidity needs as part of the planning process.
For families who are caring for a child or other family member who may have special needs because of a disability, the Special Needs Trust is a key ingredient in the planning solution. A properly drawn Special Needs Trust can provide a repository for inheritances and gifts that are intended to benefit the family member with special needs, while protecting access to important government programs and providing a life-long support system.

Document Preparation

     After the structure of the plan is decided upon, the next step in the process is document preparation. Your attorney may provide you with other useful instruments besides the will and any trust documents, which may include:

The Execution

     When all of the documents have been prepared and approved by you, a final conference is held in the attorney's office for the formal execution of the will and other instruments. Arrangements can be made at the final conference to attend to any needed changes in the title to your assets, instructions to your bank and financial planner and other details that need attention.