ESTATE PLANNING: WHAT YOU NEED TO KNOW

 

Most people don’t enjoy thinking about their own mortality. However, one of the most important things you can do for your family and loved ones is to prepare them for the day when you’re no longer around.

 

With a well-crafted estate plan, you can meet your family’s needs: distribute property according to your wishes; prevent potential legal battles; minimize taxes, legal fees, and the time it takes to settle your estate; and provide for your loved ones financial security.

 

Estate planning allows an individual to arrange for the orderly transfer of assets at death or earlier, often with the above goals. It generally involves a variety of tasks and documents, the most common being: a will; a living will; a durable power of attorney or health care proxy; a durable power of attorney or financial proxy; living or other various trusts; beneficiary designations; charitable designations; a lifetime gifting program; and a life insurance policy.

 

An estate plan should be tailored to meet an individual’s specific circumstances and needs. Some will be complex while others will be relatively simple. It is important to use professionals with expertise in estate planning as well. I always recommend at the minimum an estate planning attorney and a certified public accountant and or certified financial planner, as these individual’s deal with estate planning issues on a daily basis.

 

Once your estate plan is prepared, it is also important to communicate your plan with your family and loved ones. Communication ahead of time will often ensure that everything is carried out with minimal effort and will usually lessen the chance of unexpected events causing major problems.

 

Also, it is very important to periodically review your estate plan and make whatever changes or adjustments you feel may be in order. As your personal or family circumstances change, as tax laws change, be sure your estate plan is up-to-date and meets your wishes as well.

 

Although estate planning is not something we enjoy doing, proper planning now can make life a little easier for our loved ones when we are no longer around to be a part of their lives.

 

Editors Note: I know from personal experience that Power of Attorney over ones finances does not necessarily give you Power of Attorney over ones health or person. When speaking with your advisor be sure they understand your needs so they can adequately help you reach your goals for the future. Donald Scherzi is a Certified Public Account and a Certified Financial Planner. If you would like to contact him directly you can call him at 746-1926 or email him at donaldcpa@bellsouth.net.  He has been a Heights resident since 1996. You may visit his web site at www.donaldscherzicpa.com for tips, strategies, and news to improve your total financial well-being.