Council on Aging Senior Guide 2013 - 74

Estate Planning
n Harry M. Barth, Esq. & Michael Bader, JD, CPA Law Offices of BARTH CALDERON, LLP DO YOU HAVE A PLAN FOR YOUR ESTATE? IF YOUR ANSWER IS “NO”, THINK AGAIN. You do have an estate plan even if you do nothing. That is because state law determines how your assets will be distributed even if you do not develop your own plan. Many people are unaware: NO PLAN = THE STATE PLAN. Problems Can Arise If You Do Not Plan Your Estate n Your assets may not pass according to your wishes. n Who will make decisions in the event that you or your spouse is unable to do so? n Estate taxes may reduce the value of the property received by your family 30 – 45%. n Your family and other beneficiaries may suffer from delays, frustration and costs. What Is An Estate? You do not have to be wealthy to have an estate. Though you may not think of yourself as wealthy, the combined value of all your assets may be sizable because your estate is the combined value of everything you own. Your estate includes: bank accounts, cars, real estate, the things inside your house and safe deposit box, investments, insurance, retirement plans, annuities, and your business. Your estate is the entirety of the property you have worked hard to build and protect throughout your life. An Effective Estate Plan Can: n Provide a “road map” for the management of your affairs during your life and the distribution of your estate when the time comes. n Designate who will make medical, caregiving, and financial decisions for you when you are unable to do so. n Reduce or avoid probate fees and associated legal costs. n Keep your financial affairs private and confidential. n Minimize or eliminate loss in estate value caused by settlement costs and estate taxes.
Senior Guide OC 2013

COUNCIL ON AGING ORANGE COUNTY

One of the Most Important Things You Will Ever Do
n Provide proper beneficiary designations for pensions and life insurance. n Create protective trusts for you or your spouse, minor children, or family members with special needs. The Importance of Planning Ahead Historically, a “will” is the primary document for transferring property when you die. If you die without a will, the State law where you reside will control how your property is distributed. Estate settlement is more troublesome and frequently more costly than using a trust. A well-drawn plan usually addresses the following concerns: Appointing an Executor Your will should name an executor who acts as your personal representative when you die. An executor’s responsibilities include filing your will in probate court; distributing assets to your heirs; filing and paying taxes; paying your final debts and expenses, and arranging for distribution of life insurance and retirement plan benefits. Establishing Trusts A will simply instructs the executor how to distribute your assets. A trust is a legal document that can be used to manage property during your lifetime in the event of disability or incapacity. A trust can: n Direct the management and distribution of your property after your death. n Accomplish longer-term goals like creating education funds for a child or grandchild, providing money to help an elderly parent or disabled child. To reduce the size of your “taxable” estate, your estate plan should include one or more trusts. Transferring Your Property Take the time now to determine who should inherit your assets and when is the best time for them to receive your property. A carefully drawn estate plan will ensure that these important steps will be carried out at the proper time for your family members.

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Council on Aging Senior Guide 2013

Table of Contents for the Digital Edition of Council on Aging Senior Guide 2013