Estate Planning: Non-Tax Reasons - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

Estate Planning: Non-Tax Reasons

Description:

Although tax related considerations are often the motivation behind the desire to create an estate plan, it should be clear that there are numerous non-tax reasons for creating an estate plan that are of equal, or greater, importance. – PowerPoint PPT presentation

Number of Views:76

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Estate Planning: Non-Tax Reasons


1
Estate Planning
  • Non-Tax Reasons to Plan

2
Avoiding, or decreasing, an estates tax burden
is often a motivation behind estate planning
3
While tax avoidance is certainly an important
goal of a comprehensive estate plan there are
other important reasons to create an estate plan
4
1
Incapacity
Incapacity may be the most important reason to
create an estate plan
5
Without an incapacity plan healthcare decisions
may default to someone unintended
6
An advance directive, healthcare POA, or similar
document lets you decide who will make healthcare
decisions if you become incapacitated
7
End of life decisions can also be made in a
separate document
8
A property POA allows an agent to control
property in the event of your incapacity
9
2
Division of Assets
Most common reason people give for estate planning
10
Particularly important if you do not want your
intestate heirs to inherit
11
Allows you to gift to an unmarried partner,
friend, or charity
12
3
CONFLICT AVOIDANCE
An estate plan allows you to make your wishes
clear
13
This is particularly important if you are making
non-traditional choices
14
Sharing your plan lets beneficiaries and heirs
know ahead of time what to expect which often
decreases the possibility of conflict
15
4
GUARDIANS
If you and your childs other parent are both
unable to care for your child a court will have
to appoint a guardian
16
Applies to parents and other dependent loved ones
as well
17
The court will make the decision without
guidance or input from you.
18
A complete stranger could be appointed
19
By nominating a guardian in your plan you can
influence the courts appointment when the time
comes
20
5
MANAGERS
Someone will need to manage your assets when you
die
21
Your estate plan lets you decide now who the
managers will be
22
By creating a trust you can appoint a trustee to
manage the trust
23
Trustee can be a loved one or professional trustee
24
Assets can be transferred to the trust for
safekeeping
25
Good option if you have minor children
26
Beneficiaries can benefit from the trust while
guarding assets until they are old enough to
manage them
27
6
PROBATE AVOIDANCE
Probate avoidance is a common estate planning
goal for many reasons
28
Probate can take months, even years, to complete
29
Assets are frequently inaccessible to intended
beneficiaries during probate
30
Probate may be costly diminishes the value of
the estate
31
Probate is public
32
7
COORDINATING WISHES
A comprehensive estate plan lets you coordinate
your wishes in a way that will ensure that they
are carried out in the future
33
Often, there are multiple steps required to
ensure that a gift of property is carried out,
for instance
34
Your estate planning attorney will make sure
everything is coordinated so there are no
glitches when the time comes to transfer property
or distribute gifts
35
Non-Tax Reasons Prevail
36
Although tax related considerations are often the
motivation behind the desire to create an estate
plan
37
Although tax related considerations are often the
motivation behind the desire to create an estate
plan
it should be clear that there are numerous
non-tax reasons for creating an estate plan that
are of equal, or greater, importance
38
By Stephen C. Hartnett, J.D., LL.M. Associate
Director of Education American Academy of Estate
Planning Attorneys 9444 Balboa Avenue, Suite
300 San Diego, California 92123 Phone (858)
453-2128 www.aaepa.com Get free important
estate planning tips like this in your
inbox Subscribe to our blog at http//www.aaepa.co
m/blog/
www.aaepa.com
http//www.aaepa.com/blog/
About PowerShow.com