Simple and Complex Estate and Financial Planning

An estate plan is comprised of documents that will carry out your financial wishes in the event of your death or incapacity. Documents commonly associated with estate plans include wills, living trusts, powers of attorney and living wills. Regardless of what documents and level of financial planning an estate plan contains, it should always accomplish three things:

• Ensure that your beneficiaries receive their inheritance.
• Reduce or eliminate the expenses associated with the transfer of property.
• Ensure that others are not able to interfere with your estate decisions.

Simple estate and financial planning usually involves the presence of wills, living trusts and powers of attorney for an estate that is worth less than $1 million. However, estates worth more than $1 million face taxes that could significantly diminish their value and therefore require “complex” estate and financial planning. For example, the federal government collects gift taxes on estates of $1 million or more, with married couples whose estates are worth more than $4 million sometimes losing as much as 46% percent of their estate’s value to estate taxes.

Whether your estate is small, medium sized or large, estate planning can ensure that your beneficiaries receive significantly more from your estate than they would if you failed to take planning measures. Presenting your estate situation to an experienced estate attorney is the best way to ensure that your estate plans are financially viable and constitute the best interest of your beneficiaries.