What Is Estate Planning?
Guardianship of Minor Children
Disposition of Property
Adequacy/Liquidity of Estate
Asset Management
Business or Farm Continuity
Tax Savings
Guardianship of Minor Children
Who will raise your children if you and your spouse predecease
them? People with very modest estates or those with no probate
estates still need a Will in order to name a guardian for
their minor children. This may but does not have to be the
same person you name to manage your children’s inheritance.
You can provide suggestions, guidance and directives as
to the standard in which you want your children raised and
as to what are acceptable or nonacceptable expenditures.
Disposition of Property
Who will inherit your property? This decision can be complicated
when there are children from a prior marriage or when your
children have different needs.
Adequacy/Liquidity of Estate
Are your assets adequate to provide for your family and,
if adequate, do they provide the liquidity necessary to
pay death taxes, expenses of administration, and funds for
family needs without forcing the sale of nonliquid assets
at a disadvantageous time? Life insurance programs should
be considered to meet these needs.
Asset Management
Who will manage your assets if you become incompetent?
Who will manage your estate upon your death? Who will manage
funds left to minor children? Who will handle the affairs
of a special needs child?
Business or Farm Continuity
Are you concerned about the succession of ownership and
control of a family business or farm? You may need a Buy/Sell
Agreement and you may need life insurance to fund this Agreement.
You may also want to consider a Family Limited Partnership
or a Limited Liability Company to assure continuity and
control.
Tax Savings
Even with the phase out of the federal estate tax, death
taxes will continue to take a significant bite out of inadequately
planned estates. If you and your spouse’s combined
estates exceed the “applicable exclusion” (presently
$1 million), there are many estate planning measures that
can be taken to minimize or eliminate death taxes.
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