Download - Estate planning goals and objectives
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Estate Planning Goals & Objectives
Copyright 2013. Purcell and Amen - Attorneys at Law, Your Estate Matters LLC www.yourestatemattes.com 2
Most people realize the need for a comprehensive estate plan, yet over
half of all Americans have yet to create one.
While there are many reasons why people put off creating an estate plan, one reason may be
that people do not realize how many different goals and objectives can be achieved with a well
drafted estate plan. Once you realize how much an estate plan can accomplish, you may finally
make the time to create one if you have yet to do so.
Distribution of Assets
The distribution of assets is the most basic
objective of any estate plan. The foundation of
most estate plans is a Last Will and Testament,
which allows you to decide who will receive
which assets upon your death. In the absence
of a Will or some other asset transfer vehicle like a trust, state intestate laws will decide who
receives your assets. In Missouri, this means that your spouse, child, parents or siblings will
likely receive all your estate assets. Friends, more distant relatives, step-relatives, or charities
will receive nothing absent gifts made in a Will.
Tax Efficiency
In the United States, just about everything is subject to taxation – even death. Although the
lifetime exclusion amount for gift and estate taxes was recently set at $5.25 million, many
taxpayers who don't consider themselves to be truly wealthy can reach, or exceed, that
amount over the course of a lifetime. Without careful estate planning, all gifts, including those
made at the time of death through your Will, could be taxed at rates as high as 40 percent.
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Probate Avoidance
Probate is the legal process by which your estate assets are
inventoried, creditors of the estate paid, and the remaining
estate assets transferred to beneficiaries or heirs. Not only
can probate be costly, but it can also take a significant amount
of time. In Missouri, the earliest that a probate case may be
closed is six months and ten days after notice of the probate
was made by publication. More complicated estates can easily
take a year or more to probate. A thorough estate plan can
minimize exposure to probate, or in some cases avoid probate
altogether.
Incapacity Planning
People often think of age related dementia
when they hear the word “incapacitated”;
however, a tragic car accident could leave
you incapacitated tomorrow. Planning for
this possibility is another important goal of
an estate plan. In Missouri, a Durable Power
of Attorney for Healthcare & Healthcare
Directive allows you to appoint an agent to
make treatment decisions for you as well as
afford you the opportunity to make advance
decisions regarding your healthcare in the
event you are unable to make them yourself
at some point in the future.
Long Term Care Planning
Currently, about 10-15 million people use
long-term care services. By 2040, estimates
are that the number of older adults who will
need long-term care will exceed 20 million.
Long term care can be very expensive,
making long-term care planning a popular
estate planning objective. The cost of a
yearly stay at a long-term care facility
currently runs about $75,000 a year. For
many, the cost can rapidly deplete a life’s
savings; however, with some forethought
and careful planning this can be avoided.
Copyright 2013. Purcell and Amen - Attorneys at Law, Your Estate Matters LLC www.yourestatemattes.com 4
Retirement Planning
Not surprisingly, retirement planning and estate planning
often go hand in hand. Ideally, you should work closely with
both your financial advisor and your estate planning attorney
to devise a retirement plan that will maximize your assets and
leave more for you to be able to hand down to loved ones when you die.
Asset Protection
You have likely worked hard for the assets that make up your
estate. Protecting those assets is another estate planning
goal that can be achieved with a well thought out plan. This
may mean transferring assets into a trust in anticipation of
your own long-term care needs as you age, or it could include
creating a trust that will protect assets from creditors of your beneficiaries. You may even be
able to protect beneficiaries from themselves if you have a beneficiary that does not handle
money well. All of these objectives can be achieved through your estate
plan.
Special Needs Planning
If you have a child with special needs, you are probably concerned
about providing for him or her when you are no longer here. In fact,
special needs planning may be your number one estate planning goal.
Because many state and federal assistance programs count a recipient’s
resources, you must be very careful when you gift assets to your special
needs child; however, a comprehensive estate plan can accomplish this goal without
jeopardizing your child’s much needed assistance. This, in turn, will put your mind at ease.
Copyright 2013. Purcell and Amen - Attorneys at Law, Your Estate Matters LLC www.yourestatemattes.com 5
Pet Protection
Even pet planning has a place among estate
planning goals and objectives. If you have a
pet that you consider part of the family, a pet
trust may be a beneficial addition to your
overall estate plan.
Charitable Gifting
Philanthropy is often an important part of
your life while alive. It is also a goal that can
be extended after your death with a
comprehensive estate plan. In fact, just as
charitable gifting provides tax benefits while
you are alive, it can provide similar benefits to
your estate after your death when properly
incorporated into your estate plan.
LGBT Planning
Members of the LGBT community have special estate planning needs because of the fact that
federal laws, and many states laws, do not recognize same-sex marriages or unions. If you are
part of a same-sex couple and you wish to provide for your partner in the event of your death,
or you wish to give your partner legal and financial authority over you and your assets, then
your estate plan is the key to doing so.
Now that you see the many diverse and fundamental goals can be achieved by creating an
estate plan you may finally make the time to sit down with an estate planning attorney and
create your plan.
Copyright 2013. Purcell and Amen - Attorneys at Law, Your Estate Matters LLC www.yourestatemattes.com 6
References
The Missouri Bar, Probate Law Resource Guide
BYU Marriot School, Understand the Importance of Estate Planning and the Goals of Estate
Planning
Missouri Attorney General’s Office, Durable Power of Attorney for Healthcare & Healthcare
Directive
The American Association for Long-Term Care Insurance, Long-Term Care Statistics
Estate Planning and Elder Law Attorneys in St. Louis, MO St. Louis Estate Planning Attorneys: Planning for Your Future Today
Missouri Estate Planning attorneys Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC. are here to
help you with legal issues regarding St. Louis Elder Law, Veterans Aid and Assistance, Probate, Wills, Trusts,
Trust Administration, Powers of Attorney, Health Care Directives, GBLT, and all things required to establish a
proper estate plan for the future of both you and your loved ones. Our law firm understands the varying
dynamics of modern families and seeks to address these issues in the estate plan so your estate is distributed only
to those who you request, instead of those who may be otherwise legally obliged to it. Estate planning can be a
big project that requires consistent maintenance; however, our professional Estate Planning attorneys can
organize all of the legal paperwork and logistics for you, while offering helpful legal advice along the way.
Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC. 10805 Sunset Office Dr., Suite #100
St. Louis, MO 63127 Phone: (314) 966-8077
www.YourEstateMattes.com
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