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At Private Client Advisers, we provide professional estate planning services.
What Is Estate Planning?
Estate planning consists of a two-fold process of creating and using family assets during your lifetime for the benefit and support of your family, and the preservation of those assets upon your death. Therefore, there are two basic elements in the typical estate plan: (1) the acquisition and retention of assets during life; and (2) the transfer and distribution of those assets upon death.
It is important to realize that you do not have to die in order to have an estate. Your estate already consists of all the assets and property you currently own and will include the assets that you will yet acquire. Often a great deal of time and consideration is given to the details of a business transaction involving the purchase of equipment or property while, at the same time, giving very little time or consideration to one’s own estate planning or to the tremendous adverse consequences, both financially and personally, that can result as a failure to do so.
You are the only one competent to plan your estate. No other person can tell you what to do with your property, whether to keep it, sell it, exchange it, or give it away. State and federal governments impose laws and taxes that affect whatever you might plan. In order to carefully plan your estate, you will need the help of professionals.
No one can construct a sound estate plan on hunches. Development of a sound estate plan requires information — full disclosure of your assets and liabilities, your needs and objectives, and full disclosure of your existing “plan.” So, in choosing a professional estate planner to help you plan your estate, be sure to choose someone you can trust.
It is important to realize that you do not have to die in order to have an estate. Your estate already consists of all the assets and property you currently own and will include the assets that you will yet acquire. Often a great deal of time and consideration is given to the details of a business transaction involving the purchase of equipment or property while, at the same time, giving very little time or consideration to one’s own estate planning or to the tremendous adverse consequences, both financially and personally, that can result as a failure to do so.
You are the only one competent to plan your estate. No other person can tell you what to do with your property, whether to keep it, sell it, exchange it, or give it away. State and federal governments impose laws and taxes that affect whatever you might plan. In order to carefully plan your estate, you will need the help of professionals.
No one can construct a sound estate plan on hunches. Development of a sound estate plan requires information — full disclosure of your assets and liabilities, your needs and objectives, and full disclosure of your existing “plan.” So, in choosing a professional estate planner to help you plan your estate, be sure to choose someone you can trust.
A Word on Goals and Objectives:
Each person has different goals and objectives in setting up his or her estate planning. Some of these objectives are more important to some individuals than others. However, we have found that most people have four basic objectives in their estate planning. These are to:
(1) minimize the taxes payable to the government upon death;
(2) minimize the costs of administering and distributing their estate;
(3) minimize the work involved in administering their estate planning; and
(4) provide for the orderly and efficient transfer of property to their family members upon their passing.
A discussion of estate planning should be prefaced by a warning that non-tax estate planning considerations usually have a much greater priority than tax savings considerations. Generally, tax-saving techniques should be implemented only when they are consistent with a person’s over-all family estate planning goals and objectives. Most estate tax savings are realized at the time property is transferred from one generation to the next. Therefore, estate tax reduction techniques usually offer the greatest benefit to your children, usually at some cost or inconvenience to you.
Estate plans, which save taxes for children, but impair your retirement security or control of your assets, may be poor long-range estate plans. Likewise, gifting programs which give children too much too soon in order to avoid taxes may prove costly in damaging family relationships. We will, therefore, seek to achieve your goals in distributing your accumulated wealth among family members and then maximize estate tax savings in doing so.
(1) minimize the taxes payable to the government upon death;
(2) minimize the costs of administering and distributing their estate;
(3) minimize the work involved in administering their estate planning; and
(4) provide for the orderly and efficient transfer of property to their family members upon their passing.
A discussion of estate planning should be prefaced by a warning that non-tax estate planning considerations usually have a much greater priority than tax savings considerations. Generally, tax-saving techniques should be implemented only when they are consistent with a person’s over-all family estate planning goals and objectives. Most estate tax savings are realized at the time property is transferred from one generation to the next. Therefore, estate tax reduction techniques usually offer the greatest benefit to your children, usually at some cost or inconvenience to you.
Estate plans, which save taxes for children, but impair your retirement security or control of your assets, may be poor long-range estate plans. Likewise, gifting programs which give children too much too soon in order to avoid taxes may prove costly in damaging family relationships. We will, therefore, seek to achieve your goals in distributing your accumulated wealth among family members and then maximize estate tax savings in doing so.
Acquiring and Preserving Your Estate:
The process of building your estate is accomplished by acquiring personal property and assets. You have no doubt acquired your estate using a combination of active income and passive income. The income produced by your day-to-day involvement in your business, an active participation, is classified as active income. The earnings you receive from your investments are considered passive income.
A good estate plan should provide for the best use of those assets during your lifetime. With this in mind, you should determine your own personal objectives for your family and then consider how to provide for such lifetime needs as children’s education, retirement income, life insurance, disability income, and management of your assets in the event of your incapacity.
These and other objectives may be accomplished by the use of various planning techniques. For example, the following tools are available to help assist you in the planning of your estate: Trusts, Wills, Gifting, Family Limited Partnerships, changing the form of ownership of your assets, retirement plans (whether they be qualified plans, non-qualified plans or IRAs), and Insurance Trusts.
A good estate plan should provide for the best use of those assets during your lifetime. With this in mind, you should determine your own personal objectives for your family and then consider how to provide for such lifetime needs as children’s education, retirement income, life insurance, disability income, and management of your assets in the event of your incapacity.
These and other objectives may be accomplished by the use of various planning techniques. For example, the following tools are available to help assist you in the planning of your estate: Trusts, Wills, Gifting, Family Limited Partnerships, changing the form of ownership of your assets, retirement plans (whether they be qualified plans, non-qualified plans or IRAs), and Insurance Trusts.
What are some of the strategies Private Client Advisers offers with their estate planning service that will create your successful legacy?
Trusts:
A trust is a legal entity that has a Grantor, also called Trustor or Settlor (one who creates a trust), Beneficiaries (those for whom the trust was created and who will benefit from the trust property), and a Trustee (one who manages and administers the property of the trust for the benefit of the Beneficiaries). A Trust is an excellent estate planning tool. By placing property in a Trust, the Grantor can control when property will be distributed, to whom, and upon what conditions, how the property, including income, is to be used, and for what purposes. The Trustee may be given broad discretion over the distribution of the Trust’s income and principal in order to provide greater benefits to designated beneficiaries.
A Trust is often used as an alternative to the outright distribution of assets to children. A Trust can be structured to provide flexible management for Beneficiaries who are either too young or incapable of managing property. By giving the Trustee broad discretionary powers, the needs as well as the financial maturity, of the Beneficiaries can be considered in making distributions of Trust Income and Principal. A Trust may also be a worthwhile receptacle for life insurance and retirement benefits. Property placed in a Trust during your lifetime will not be subjected to a probate proceeding.
A Trust is often used as an alternative to the outright distribution of assets to children. A Trust can be structured to provide flexible management for Beneficiaries who are either too young or incapable of managing property. By giving the Trustee broad discretionary powers, the needs as well as the financial maturity, of the Beneficiaries can be considered in making distributions of Trust Income and Principal. A Trust may also be a worthwhile receptacle for life insurance and retirement benefits. Property placed in a Trust during your lifetime will not be subjected to a probate proceeding.
Discover more about our estate planning services by contacting us today.
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