Even if you can’t afford a comprehensive estate plan, you can start with a simple, affordable plan such as a will, trust, power of attorney, and term life insurance with plans to reassess the platform later as your financial situation changes. An experienced estate planning lawyer can help you plan your estate; they will look into your financial situation, family needs and advise on a suitable plan. They will also help with the preparation of documents to protect your assets against taxes and lawsuits.
These include titles, last will and testament, power of attorney, advance directives, and living will and trusts.
All estate plans should include documents that cover three main areas: asset transfer, medical needs and financial decisions, says holly geerdes, an estate planning attorney with estate law center usa.
Your advisor, working with a bank of america 1 trust professional, may be able to help. They can provide an overview of the current federal gift and estate tax, identify if you live or own property in a state that may impose wealth transfer taxes and identify strategies that you may want to discuss with your estate planning attorney or tax advisor. They can also explain how key estate planning documents are commonly used. When you are ready, your advisor, together with any trust professionals who have been involved, can work with your estate planning attorney and tax advisor to help evaluate alternatives and, where appropriate, assist with implementation.
Why everyone needs an estate plan
Estate planning is the process by which an individual or family arranges the transfer of assets in anticipation of death. An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death.
A major concern for drafters of estate plans is federal and state tax law. An estate is the total property ( real and personal ) owned by an individual prior to distribution through a trust or will. For example; cars, homes, land, household items, and bank accounts. Estate planning distributes the real and personal property to an individual's heirs.
Estate planning is the process of anticipating and arranging for the management and disposal of a person's estate during the person's life in preparation for a person's future incapacity or death. The planning includes the bequest of assets to heirs, loved ones, and/or charity , and may include minimizing gift, estate, and generation-skipping transfer taxes. Estate planning includes planning for incapacity, reducing or eliminating uncertainties over the administration of a probate , and maximizing the value of the estate by reducing taxes and other expenses. The ultimate goal of estate planning can only be determined by the specific goals of the estate owner, and may be as simple or complex as the owner's wishes and needs directs.
Per stirpes—latin for "by branch"—is a legal term that may be used for estate planning purposes, such as in a last will and testament. It designates who will inherit assets if a beneficiary dies before the person who created the will (the testator) dies. With a per stirpes distribution , the beneficiary's share of the estate will pass to the beneficiary's heirs or descendants. While the term per stirpes is commonly used to refer to an individual's assets under a will , it is also sometimes used in beneficiary designations within individual retirement accounts (iras).
An annuity is a financial tool that provides guaranteed, regular payments to a recipient. Learn why including one in your estate plan may be a great option for you!.
Before you begin to take action on your estate plan, it's important to understand the key topics that may arise as you address your specific needs.
Medicaid estate planning allows long-term care medicaid applicants to meet medicaid’s asset limit for eligibility purposes, while also legally protecting assets (also called resources) for family and loved ones for future inheritance. It might be thought that medicaid applicants have a minimal estate to protect and pass on, but it would be wrong to assume this. Everyone has an estate, even medicaid beneficiaries.