Are you thinking about or concerned about the following questions?

• Do you have the desire to avoid uncertainty, conflict or litigation about your estate?
• Do you wish to minimize taxes so that your beneficiaries receive a larger portion of your estate?
• Will your estate have enough funds to pay taxes upon your death?
• Will your estate be distributed as per your wishes?

Simply, estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death or in the event the individual becomes incapacitated.

For many families, a simple will may not be sufficient to form a complete estate plan. While a well-thought-out estate plan should include a will, you may also want to consider trusts for children and spouses; powers of attorney for property and for personal care; domestic contracts; beneficiary designations outside the estate; and life insurance. An estate plan should be kept up-to-date and reviewed as changing laws and life circumstances occur. It should also be communicated proactively to your family to avoid any surprises and conflict after your passing.

A will is a legal document that describes your wishes regarding the distribution of your property and the care of any minor children. If you die without a will, those wishes may not be carried out. Also, your family members may be forced to spend additional time, money, and emotional energy to settle your affairs after you are deceased.

A trust is a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party. There are different kinds of trusts, so be sure to explore this concept with your advisor and see what works best for your intentions. 

Estate planning ensures that your assets are distributed tax-effectively to your beneficiaries, without unnecessary delays and according to your wishes.  An estate plan includes all your personal and business assets. A succession plan involves only business assets. An estate plan is triggered by your death while a succession plan can take effect during your lifetime or upon death. 

Steps on how you can begin your estate planning:

1. Consult your advisors. This is a good place to start as they are the ones you trust and would know you and your current financial situation.  
2. Identify your estate planning goals with careful thought to:
   • What will your spouse and family members get?
   • When do you wish the beneficiaries to receive the proceeds – during your lifetime, at time of death, or later in the beneficiary’s lifetime?
   • What do you want to happen to your business assets and creditors? 
   • Are you planning to take care of aging parents and or adult children? 
   • Are there any special considerations regarding health of any member of the family? 
   • What happens to the gifts you give to family members after they pass – is it theirs to give to whomever or do you want a family member to benefit from your gift only in their lifetime?
3. Weigh your options with the help of your advisors. You will need advisors to guide you through your decision.
4. Share your plan proactively with executors and beneficiaries. Seek input. They need to be asked beforehand. No one likes surprises.
5. Implement the plan. Your advisors will assist with the structure and priorities in implementing the plan.
6. Establish timelines and benchmarks. Some aspects may require a review and a revamp. Build that time in. Monitor the plan regularly.

If you want to learn more, here are some useful links: 

• Important considerations in designing an Estate Plan