04/25/2018










Estate Planning for Peace of Mind

elderly couple on the beachDuring the course of adult life, there are occasions when we are called upon to serve a role in the disposition of matters relating to the estate of a person who has recently passed away. Although the prospect of facing the duties of Executor of an estate can seem overwhelming to many people, there are ways to minimize the difficulty of managing these duties. Where the decedent has been proactive enough to put together an estate plan, the process of administering an estate can be far less stressful, resulting in peace of mind for all involved parties.

We should all do some planning regarding our property in the event of death. That being said, it is particularly important that those who support dependents and those who own significant assets to engage in estate planning. Estate planning provides control over the disposition of assets upon death. It ensures that your loved ones are provided for in the way that you would most desire. Estate planning reflects your preferences for what should happen to your property after you die. A good estate plan will account for two major issues: first, taxes and probate treatment; second, the simplicity with which the Executor and the beneficiaries can administer the estate plan.

Select Your Lawyer and Executor

While the services of a financial planner are helpful to estate planning, it is absolutely crucial to find a qualified attorney for the purpose of drafting an appropriate legal Will. The Will is the legal document which names your beneficiaries and designates the name(s) of the person(s) who will serve as the Executor to your estate. The Executor is the person who you authorize to distribute the assets in your estate to the named beneficiaries. The Will is fundamental to any estate plan.

Upon your death, the Executor will be obligated to do what you direct him or her to do as stated in your Will. For the sake of the Executor, the Will should clearly state the manner in which your assets should be distributed. In addition, when organizing your estate plan, it is recommended that a small insurance policy be available so that the Executor has funds with which to pay incidental costs associated with estate administration. As a side note to all potential Executors, it is generally advisable to review the Will prior to agreeing to act as Executor. If the Will is overly complicated, you may not want to undertake this responsibility.

Name Your Beneficiaries

With each significant change in your life, you will want to reexamine your Will to make sure any appropriate amendments are made to accommodate for current circumstances. This might mean that upon the purchase of real estate, a review of the Will might be necessary. Attorneys often advise their clients to review the Will once a year. Additional examples of life-changing events might include a marriage, the birth of a child, a divorce, or the death of a spouse or other loved one. Just as life brings changes to family and the nature and value of assets, so must a Will be altered to reflect those changes.

Devise a Plan to Pass Money to the Beneficiaries

You may want to confer with a financial planner as well as a lawyer to consider the tax consequences of passing assets and money to your beneficiaries. Some assets are better designed to avoid severe tax consequences and probate costs. Because many other types of assets are less probate and/or tax-friendly, it is very important to consider the nature of the assets that comprise the estate and whether their value will be diminished by probate and tax obligations. Examples of tax-efficient, probate-friendly assets might include Registered Retirement Savings Plans and Tax Free Savings Accounts.

Make a Plan to Keep Taxes and Other Fees to a Minimum

Ideally, the beneficiaries of your estate will receive the maximum value of your assets. The likelihood of minimizing taxes and fees is greatly enhanced by the proper and thorough drafting of the Will, a well-balanced financial portfolio, and an appropriate amount of insurance coverage.

Charitable Giving

If you wish to make a charitable donation, start a scholarship, or something similar, it is best to check with your financial planner, who can help to ensure that your desired charitable gift is made in a way that is most efficient to the organization of your choice.

Overall, formulating an estate plan will require work, including discussions with a lawyer, financial planner, insurance advisor, family members, and potential Executors. If you want to make sure that your beneficiaries receive the assets of your choice with minimal taxes and other fees, it is certainly worth the effort.

Contact Us

To explore your options for putting together an estate plan, call the Law Office of Andrew M. Lamkin, P.C. at (516) 605-0625 for a free consultation to discuss your estate planning issues and to begin working on a personalized estate plan. Call today or fill out our contact form.



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