Estate Planning   Services List

Definition:
The planning for the orderly distribution of one’s assets after your death. The process also reviews lifetime planning considerations through the use of gifts, trusts, or methods of ownership.

Benefits:
An effective estate plan will ensure your estate passes to individuals or charities you desire and in the manner and time constraints you select. It maximizes property passed to heirs by minimizing federal and state estate taxes. Finally it allows you to designate the person(s) who will take responsibility for minor children, fulfill administrative duties on your behalf, and ensures your final health and survival wishes are satisfied.

Process:

• Meet with client to learn goal and objectives.
  
• Review current wills and trusts to determine if goals and objectives are met.
  
• Gather financial data concerning assets, liabilities, expected inheritances and anticipated obligations.
  
• Project estate taxes and assess liquidity needs for family obligations and taxes.
  
• Develop a comprehensive plan and revisit as circumstances change significantly or at least every three to five years.
  

Case Study:
A client who was recently widowed had an estate in excess of $10 million which included $2 million in a rollover individual retirement account (IRA). The client had indicated a past preference for specific charitable contributions. We prepared an estate and income tax projection which showed the estate and income tax effects of the rollover IRA passing at his death to his adult children. The combined estate and income tax resulting after the client’s death would reduce the $2 million IRA to approximately $500,000. This amount would ultimately pass to the client’s adult children. We advised the client that as an alternative to paying $1,500,000 in combined taxes and passing $500,000 to his heirs, consideration should be given to an outright transfer of the IRA, at his death, to a charity. The client agreed that a $2 million benefit to a favorite charity would greatly overshadow the significance of an additional $500,000 of inheritance to his children. Proper planning identified this opportunity, taxes were reduced, and a social benefit fulfilled.