As a little girl, I grew up in Palm Beach County, FL, not in the
rich, elite section, but in the very small town of Palm Springs.
I recall very clearly taking drives along Ocean Blvd. into the
town of Palm Beach while relatives and friends pointed out,
ooded and aahed the various estates and mansions. And so I grew
up believing an estate was something ONLY the rich owned. It
wasn’t until recently, four years ago to be exact, that someone
started talking to me about estate planning, pointing out to me
why and how they were implementing their plan. I looked a this
person and said, very innocently, “I know you own two houses,
but you don’t own a mansion! Why would you need to do such a
thing?” My eyes and my mind were awakened to something I would
NEVER have thought of looking into until that day.
Maybe you have thought the same as I did, Estate Planning is for
the rich and famous. NOT TRUE! Everyone needs to do estate
planning, because let me tell you something, the state in which
you live, the federal government, and the IRS have plans already
in place for how to distribute and tax your stuff! I’m talking
about your property, possessions, and even your children. (For
those that live outside the US, please check with your local
government and attorney for their plans for your stuff!)
By you not taking the time to plan for what happens to your
stuff, your family and heirs only gain more suffering and
heartache after you’re gone. You need to take control of your
stuff NOW! Do you know the repercussions your family and heirs
might have to endure if you haven’t planned? The anguish,
inconvenience, and possible financial burdens they might have to
face because you didn’t plan?
Yes, Estate Planning takes time and effort. It can be emotional
and trying. BUT you will be able to leave this world (or if you
become incapacitated) knowing you did the best for your family
and heirs. That they will be able to celebrate your life or
mourn your departure without the legal and financial hassles if
you have planned.
Can you imagine the state deciding who should care for your
children? Can you imagine your family trying to scrap together
money to keep the place they’ve called home? Can you imagine
your business being sold off, leaving your family without income?
One aspect of Estate Planning is to allow you to take advantage
of gift and trust laws so that you may be able to pass on more
of your assets tax-free to your family and heirs. You aren’t
cheating the government; you’re cheating your loved ones if you
don’t plan!
Another aspect of Estate Planning is to give control to someone
you trust if you should become incapacitated.
As of this year, 2000, the Estate tax-exemption level is
currently $675,000; however, this is said to be increasing
yearly.
Why do Estate Planning? ~~ To distribute your assets ~~ To
eliminate or reduce federal estate tax ~~ To avoid unnecessary
high costs in legal fees and taxes to your heirs ~~ To pass on
tax-free the maximum allowed assets (these figures seem to be
changing yearly) ~~ To make sure things get handled the way YOU
want them to be handled
What is taxable? Many of the items that are taxable can include:
Life Insurance, IRA and other Retirement benefits, Investments,
Bank Accounts, Personal Property, Collectibles, your business,
your home, and other real estate.
What do I need? Some of the things you will want to look into
are: ~~ Durable Powers of Attorney – this document transfers
authority to another TRUSTED person to manage your finances. ~~
Health Care Powers of Attorney – this document gives someone
legal authority to act on your behalf with regard to your health
care. ~~ Living Will – this document will provide instructions
as to the type of medical treatment that you prefer. ~~ Will – a
document in which you can name an executor to oversee the
settlement of your estate, outline what and how you want your
assets and property distributed, and name a guardian to care for
your children. However, after much research, I urge you to look
into a REVOCABLE LIVING TRUST with Power of Attorney. Unlike
having a will or no will, you skip probate, it’s more flexible,
you have maximum control, and you maintain privacy.
Estate Planning can cover, but not limited to, wills, trusts,
insurance, estate taxes, gifts, gift taxes, and income.
You will need to form a team of reliable, dependable, and
competent people in the following areas: ~~ Estate Planning
Attorney ~~ Life Insurance Underwriter ~~ CPA ~~ Development
Officer ~~ Financial Planner ~~ Captain-This is YOU. You are the
Captain of the team; it’s what YOU want to be done, your wishes.
Your team is there to help you make the best choices for your
life and your families.
TIP: Your parent’s plan may affect your plan! If you don’t know
what they have planned, then discussing this with them might be
the most difficult thing you’ll have to do in estate planning.
Many older parents downright refuse to talk to their children
about such matters. Talking of such things can conjure up in
their minds that you’re after their money, that it’s none of
your business, you’ll find out when we’re gone. Speak to them
calmly and clearly and let them know what YOU are trying to do,
that you are taking control of YOUR finances, that you are
getting all your ducks in a row and how THEIR ducks might affect
yours. Share your plan with them and show them what you are
trying to accomplish. Hopefully if they have a plan, they will
share with you, and if they don'’ have a plan, maybe they will
learn something from you and get one of their own.
RELOCATION TIP: Property transfer laws differ from state to
state. Review your estate plan when you move or retire to a
different location.
Birth, death, marriage, divorce, inheritance, purchase or sale
of assets are many reasons you should review your plan when you
have these or other lifestyle changes. If you don’t have any
changes, a review of every three to five years is advisable.
Smiles, not Piles, The Organizing Wizard, Janet L. Hall, is a
Professional Organizer, Speaker, and Author of 'Secrets of a
Professional Organizer and How-To Become One.' She is the owner
of OverHall Consulting and Organizing By Phone. Subscribe to her
FREE organizing newsletter at
http://www.overhall.com/newsletter.htm or visit her web site at
http://www.overhall.com
Copyright © 2000 by OverHall Consulting P.O. Box 263, Port
Republic, MD 20676 All Rights Reserved. Permission is granted to
reproduce, copy, or distribute so long as article is kept
intact, this copyright notice and full information about
contacting the author is attached.
About the author:
Smiles, not Piles, The Organizing Wizard, Janet L. Hall, is a
Professional Organizer, Speaker, and Author of 'Secrets of a
Professional Organizer and How-To Become One.' She is the owner
of OverHall Consulting and Organizing By Phone. Subscribe to her
FREE organizing newsletter at
http://www.overhall.com/newsletter.htm or visit her web site at
http://www.overhall.com
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