Vincent John Bazemore, Jr. Estate Planning Guide

Author: Kris Koonar
Are you sure, you have selected the right estate plan? Estate tax is one of the most valuable resources of federal revenue. It also encourages millions of dollars as donations. Estate planning is very vital and there are several reasons that make it important. Generally Americans avoid making a will and don’t think about making any comprehensive plan to avoid estate taxes or avoid any probate.

Depending on your age, wealth, health and instinctive level of caution, you may not need much of estate planning. If you wish to, you may need to decide on appointing a lawyer to assist you in making a will or trust. If your estate is not as dripping as Picasso or if you don’t possess a fat investment then you may not need a lawyer as it is easy and safe to chart out a basic estate planning. You can handle estate planning with some simple self-help techniques like-

You are 25 and yet single

If this is the case then why are you reading estate planning? You should be partying and dancing with your date. But if you are still interested then at your age, don’t trouble yourself with estate planning. If your lifestyle is too perilous or you suffer from some serious illness, then you have ample of time to think of it.

If you are very rich then pass on the assets to your boyfriend, nephew or for a favorite cause and if you don’t write a will, then after your death the property goes to your parents. So think about it.

Are you a couple but not married?

If you have linked yourself, but not married then you need to have a will. Without a will the state law will dictate their terms over your property and unmarried partners get nothing, except in few places like California, Maine, Hawaii and Vermont where surviving partners inherit everything. So if you love your partner and don’t wish to leave him or her without anything, prepare a joint tenancy with the right of survivorship. This will entitle the person to own 100% of your property.

Do you have young children?

Write a simple will, just a document that entitles your children to your property and the name of a guardian for your children if they are below 18. The guardian takes over the control on your property if both or either of the parents is not accessible. If you fail to mention a guardian’s name then the court suggests the name of one of your parents. So if you don’t specify the same in your will, your spouse may be left with nothing and everything will go directly to your children. Children are not permitted to invest or spend anything without court order.

Mutual fund investment

If you have led a comfortable life and saved some material wealth, then you need to invest well. If you wish to save your family from legal hassles, then try and make a revocable living trust so that your heirs get everything directly without any circuitous detour or going through the court.

Author: Kris Koonar
Estate planning is largely done based on the tax exemptions and taxes payable. The federal tax exemption that is granted at present is set at $ 2 million. This means that those who have assets below this amount are safe and can do as they please. A complicated estate with many heirs, different assets etc will require one to get professional help to develop a good plan. Nevertheless, there are ways in which you can identify your estate beneficiaries and at the same time reduce expenses, and increase the inheritance.

The first step towards planning is to find out what the tax exemption is set to in your state. You can do this easily by logging on to the appropriate website. On finding this limit, you can start with the other legal requirements that you need to get done. There are websites that give you information and provide you with a will, power of attorney agreements and other legal documents that you may need. These power of attorney agreement contracts may be priced about $20 or so.

You must review your life insurance policies and retirement policies. The insurance accounts can easily be transferred to the beneficiaries or whoever you may choose. You can do the same with the other taxable accounts in your possession. This includes savings accounts, mutual funds and other investment accounts. To make these transfers valid, the benefactor needs to entitle the accounts as ‘transfer on death’ or ‘pay on death’ to the respective heirs. Only then will the proceeds of these accounts be transferred to the beneficiaries. However, if you have a complicated financial situation then you cannot use such simple methods to plan your estate.

A large estate or one that does not qualify for the tax exemption may require legal or professional help. Many estate planners help with proper plans, but ensure that these planners are certified if not, then a lawyer is the better option. You can use title assets to simplify the financial transfer of your life and retirement insurance in the case of your death. For your other investments you can initiate a living trust to stockpile the assets.

You may also have property or other assets that you own in another state or country. This may get difficult to handle when you wish to transfer the ownership upon death. To simplify matters it is best that a lawyer who is an expert in international law and also one who has had experience in real estate planning be appointed. In this way, you will be able to have the best of both worlds by ensuring the lawyer takes care of the legal matters and at the same time provides you with a good plan.

You also have the option of sharing your wealth with the beneficiaries now, so that you avoid paying exorbitant taxes in case of death. In this way you save not only yourself the trouble of estate planning and the expense you incur in getting expert advice, but you also save the heirs a lot of money that they would be paying in taxes.