This article summarizes highlights from a publication at TheStreet.com which discusses the four key questions in estate planning.
According to a recent survey, although 87% of parents plan to leave an inheritance, only 37% reported an actual plan to do so. For some, thinking about their demise is uncomfortable and for others, discussing an estate plan may create or reopen family disputes.
Do I even need an estate plan?
- That same survey found that one in five respondents admitted to arguing over an inheritance.
- Failing to plan for your assets, your healthcare if you are incapacitated and your end of life preferences can lead to confusion, results not in accordance with your desires, and unnecessary court costs.
- You estate could potentially be eroded by the unintended and unanticipated costs that result from not having an estate plan or not keeping it updated.
What assets will I transfer?
- You want to avoid any assets becoming unclaimed property.
- One of the first steps is to have a plan that lays out what assets you will give and account details.
- Keep your asset list in a secure and obvious place.
When should I transfer assets?
- You can transfer assets while you are alive or after you have passed.
- As you consider the question of when to transfer, you need to consider all the tax implications and also weigh your own need for the assets during your lifetime.
How can I communicate my plan to my family?
- Open communication with your family members can help you better plan because you can get an idea of their financial needs and wants.
- The potential tax consequences of wealth transfer can also be important to discuss with family members.
- If you plan to leave a business to family members, it may be wise to help teach and train them about the business during your lifetime.
Contact an Experienced Estate Planning Attorney
The famous phrase, “failing to plan is planning to fail” is an axiom of estate planning and finding the right advisors to assist you is key. At the Law Office of David Knecht, we have extensive experience with estate planning. We can create a customized plan with you, or if you already have an estate plan, we can help you ensure that it is updated and accurate. Contact us at 707-451-4502.
