Estate Planning

Estate planning is the process whereby we work with our clients to make sure that their ultimate desires with regard to their estate will be carried out after death. A successful estate plan starts with a clear understanding of the client's goals and the client's current and projected financial circumstances. A well drafted estate plan clearly establishes who will take what, when and under what conditions and, while taxes should never dictate an estate plan, the tax consequences are always carefully considered and minimized to the greatest extent possible.

 Wills

A Will is a legal document which helps you to put your affairs in order at the time of your death; it allows you to express your intentions regarding your estate (your home, money and other assets). Your Will identifies who will handle your estate (your "executor"), to whom your assets will be distributed (your "beneficiaries") and who will serve as guardian of your minor children. If you have a potential beneficiary who has special needs (such as a disabled child), your Will can contain instructions to your executor to make sure such a beneficiary is taken care of according to your wishes. If you die without a Will, your estate will be distributed according to a formula established by state law. Your spouse may have to share your estate with other family members. A court may name a guardian of your minor children whom you would not have approved of. The state's formula does not take the special needs of any beneficiary into account.

Wills can be simple or complex; they will differ for single individuals and married couples, for people with minor children and for people with no children, for people who have a taxable estate and those who do not have a taxable estate. A variety of techniques are available for use in a Will to minimize or eliminate estate taxes.

 Powers of Attorney

An important part of estate planning is the recognition of the possibility of incapacity and to plan for substitute decision making. A durable Power of Attorney is an instrument in which you designate an Agent to act on your behalf should you become incapacitated. Without a Power of Attorney it would be necessary for your family to initiate Guardianship proceedings in order to obtain the legal authority to take care of your financial affairs and to make health care decisions on your behalf. For long term care/nursing home planning, it is critical that your power of attorney provide for unlimited gifting as well as the power to change ownership and beneficiary designations on such things as life insurance, IRAs, and annuities.

 Living Wills

A Living Will is a document in which you state your wishes regarding life sustaining medical treatment under circumstances where you are terminally ill with no hope for recovery and are mentally incapacitated so that you cannot make decisions for yourself. It is similar to a durable healthcare Power of Attorney but only takes effect under limited circumstances.

 Trusts

Trusts can be created within a Will or as a free-standing entity in order to accomplish a number of objectives, such as the transfer of ownership of property while maintaining a measure of control over the property; Tax savings; Protection for a disabled loved one; to avoid financial Guardianship proceedings; and Protection from creditors.

 Living Trusts

A Living Trust is a revocable trust (meaning that you can terminate or change it at any time) which allows you to manage your affairs until you become incapacitated, at which time a Trustee named by you in the trust document has the legal authority to manage your affairs. A Living Trust also contains provisions similar to those in a Will which designate how your estate is to be handled after you die. There are many reasons for planning your estate using a Living Trust instead of a Will and durable Powers of Attorney, the most common being to avoid probate.

 Special Needs Trusts
 & Supplemental Needs Trusts

Planning for disabled individuals involves a number of complex issues where trusts can be helpful. For most disabled individuals, maintaining eligibility for Medicaid is very important. A Special Needs Trust can be used to hold a disabled individuals own assets while allowing them to maintain eligibility for Medicaid. A Supplemental Needs Trust can be used where the disabled individual is likely to inherit money that would otherwise make them ineligible for Medicaid.

 Charitable Giving

There are many benefits to charitable giving, these include tax deductions such as income tax deductions, inheritance tax deductions and federal estate tax deductions. The tools we use vary in their size and scope. Essentially there are three categories; the Charitable Remainder Trust, the Charitable Lead Trust, and the Private Family Foundation. The Charitable Remainder Trust allows you to gift highly appreciated assets to the trust while retaining an income interest for your life or the life of you and your spouse. When you or the survivor of you passes away, the remainder interest in the trust passes to the charity. In addition to the death tax deductions, you also receive an income tax deduction for the present value of the gifted remainder interest.

The Charitable Lead Trust is the opposite. With the Charitable Lead Trust, the income interest is given to the charity on a monthly, quarterly or annual basis. When you die, the remainder interest goes to your heirs. The value and amount of the deductions is based upon the terms of the trust.

A private family foundation is a charitable corporation or trust that you set up today. This foundation is a charitable, non-profit corporation and you receive an income tax deduction for the gifts you make to the foundation. There are limitations to how much you may deduct and the value of the deduction. However, the benefits are numerous.