Estate Planning in the 21st Century

Why is it so Critical?

Plan to avoid probate. For many estates it is important to avoid probate. Probate is expensive, it is not private, and results in a delay of distribution to your heirs.

Plan for gift and estate taxes. Despite tax reform, gift taxes have not been eliminated and estate taxes are not phased out until 2010. The estate tax brackets are high! Effective estate planning can minimize the consequences of gift and estate taxes.

Plan to name a guardian if you have young children.

Plan to defer payment to your children in a trust. If you do nothing and your estate passes to your young children, a guardianship will result. It is expensive and your children would receive their inheritance when they are eighteen.

Plan for special needs persons. Impaired heirs need special care in your estate planning documents.

Planning with a second marriage or discontent heirs. The second marriage is ripe for discontent. Provide for your current spouse or children from a first marriage in a way that will carry out your wishes with minimal discord.

Plan for unequal estates. Careful planning is needed when you have large IRA's or employment retirement benefits.