When it comes to your estate, what's not done is often the biggest mistake made. Even people who realize the importance of proper planning often don't have a plan in place. From psychological difficulties in facing one's own mortality to the more mundane problem of simply finding the time, the reasons people avoid developing an estate plan are as diverse as the individuals themselves. Still, nearly everyone—from the wealthy to those of very modest means—can benefit from a well-designed plan.

 

Developing a well-designed approach for your estate is a personal process. It is grounded in the attitudes, beliefs and traditions that you consider important. Your estate will change as you progress through your life and incorporate different aspects of estate preparation.

 

Without any estate plan in place, federal and state laws dictate how property, personal items and assets are divided, with no regard to the individual's wishes. Conflicts due to family issues and legal problems often result, tying up the estate and slowing down the distribution of assets. Additional administrative expenses and taxes, which must be deducted from the estate, can also reduce its overall value.

 

When you know your objectives, it is easier for your attorney to prepare the documents for you. Coordination with your advisors allows you more time to take care of those things that mean the most to you. The techniques commonly used are wills, trusts, durable powers of attorney and gifting.

 

The assets of an estate can be depleted through administrative expenses and taxation. Good estate planning looks for ways to preserve your assets and plan constructively how to pass on as much of your estate as possible to your heirs.

 

Dependents with Special Needs

As a parent or guardian of a person with special needs, it becomes especially important for an estate plan to be in place to understand the implications of how inheriting even a small amount of money could disqualify a person with disabilities from most federal benefits, such as Supplemental Security Income (SSI) and Medicaid, and from any state programs. Special considerations include what kind of life would you like the person with special needs to have, how will he or she live without you, and what other requirements are important to your family — retirement, education funding, etc.

 

The legacy you leave will depend on the plan you prepare. Through careful thought and use of the proper tools, you can leave your beneficiaries the estate you always meant for them to have.  

 

Information in the Estate Analysis section is provided for reference only. Always seek the advice of competent legal and tax counsel.