Today's Estate Planning
– One Step at a Time

By: Joseph Warren

All right, you've amassed your fortune and now it's time to make sure that you pass along your well managed assets to your heirs. You've read and heard a lot of information and now it's time to begin. But where? And to whom do you listen? Just remember that if you speak to a salesman regarding policies or estate planning, they are, salesmen. And remember, don't be conned, don't be swayed...be informed. And if it doesn't feel right, don't sign it. It's your life, it's your money, and you are the client.

So, let's begin at an arbitrary beginning.

Whether you are deciding these issues for yourself or for your parents, the thought of what to do with "the stuff" or more delicately, "the assets", may be a new thought for you. We've been conditioned all of our lives to purchase, to gain, and so, to sustain what we've amassed, may be a brand new thought and financial direction for some. As there's no need to be intimidated by the information, there is a word of caution, there's no need to make a profession out of deciding what to do with your assets, just take care of it, plain and simple, and be relaxed. And the plainer and the simpler, the better, because in today's world, estate planning is and can be a step-by-step procedure (be certain to pay attention to new tax rulings).

First things first. Today's planning is not what yesterday's planning was, so keep abreast of the issues every couple of years; use your most comfortable resources, i.e. the internet, publications, library, and/or advisers, tax, financial, law, etc...

Remember, or maybe you're too young, when it was popular to "spend-down" to 2,000.00? Well, today's trend is no longer moving in that direction. Medicaid isn't what it used to be. The rulings are strict and the years they may "go back into your records" seem to be lengthening. So be aware that the Government is onto that old scheme.

The consensus is to avoid probate and to put all assets into a Living Trust (the term Living Will, originally was reference to your health decisions, not property). Please know that assests in your Living Trust can be attatched by the Government. The theory goes, a dead man can't sign away his assets, but he can assign them if he's alive. So, while you, and/or your parents as they may need help, are still alive, take the time to make a Living Trust. After the Trust is written, then change the name/title on the titles of your assets, i.e. houses, cars, accounts. By doing this, it affords you the ability to still 'manage it all' while you're alive (although Wills can do this also), and when you may no longer be able to make the decisions; your Trustee may immediately take over and easily and readily (so I've been led to believe) are able obtain and manage those assets, which may now be theirs as heirs; to keep the Trust's contents private, as it is not public record; and very importantly, you are able to skip the "probate" process and its time and money involvement. As Probate Court may take years and not just if someone is contesting, and time is money.

A Living Trust is used in addition to a Will and is mentioned in the Will. A will is also used to let the Probate Court know that a Trust instrument has been put in place, so that the Court will not have to manage the assets.

If you are still married, you may want to find out more information about a Bypass Trust (ask about the one-time exemption).

Also, if you're in your second marriage and second family, you may want to look into taking advantage of the marital deductions and giving to your latest spouse, but limiting their access on the principal, thereby keeping it in tact for the children of the first family.

If you have reached the ceiling, i.e. $675,000, (or whatever the current ceing is) in assets, it may be possible to give gifts. For some, this may be worth checking into. And be aware of "disbursement". Your heirs may not want it quickly. So check into the payment schedule. If you have reached the ceiling, you may be close enough to it that spending the 10,000.00 (or current amount) gift amount to keep you under the ceiling, and would also keep you endeared.

In your Will and Living Trust you need also decide who is to decide about your health and who is to decide about your finances. It does not necessarily have to be the same person.

So, first step first, make out a Will and Living Trust.

Now, how to do your Living Trust. You may go to a bookstore or nolo.com and get their books and follow-through, either by yourself or with a group (sometimes things aren't so overwhelming in a group), or contact a Financial Advisor (who is very adept at understanding your funds), Attorney, self help law centers, or an Estate Planner, etc. With all of the software available, and for a fraction of the price and its weight in gold for the knowledge, cut-and-paste-fill-in-the-blank software and a manual is an empowering experience.

Remember, don't be at a salesman's mercy, read, and listen to "qualified" people. And also, keep in mind that it "can be done" and "you can do it". Afterall, you know "the stuff" you have and what assets have titles and bene's. Just begin one step at a time. One asset at a time. One page at a time. And soon, your Living Trust will be finished. And what a relief that will be. For all parties. You have the time, make the most of it, one-step-at-a-time, and take your time

Keep in mind that life is hard enough for all of us without complicating it for ourselves or others. And although some may feel uneasy or paralyzed about this task, just think 'technology' and maybe even ask your children or grandchildren for help. If nothing else, it'll give you all something to nice to talk about.you.

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