Cents and Sensibility
Cents and Sensibility
Question: I'm confused as to what I should do regarding my estate. I'd like to pay as little to the government as possible. What are some of the things I should be doing? Estate planning will be big
help to beneficiariesAnswer: Creating your estate plan is an important task for you and your loved ones. Only through careful planning can you be assured that you and your beneficiaries will be cared for as you desire. Here are some ideas for you to consider as you plan.
>> Establish your objectives.
Estate planning really is lifetime planning. It should focus on planning for life more than for death -- your life, the lives of family and friends, and finally the lives of your heirs. Estate planning involves not only financial and tax matters, but also helping to make sure family members will be secure.
>> Create a list of your assets.
In order for professional advisers to assist you in designing an effective estate plan, they will need an accurate list of the assets you own. Your investment representative can provide you with a "personal financial inventory" sheet, a comprehensive checklist you can use when creating an inventory of your assets.
>> Minimize administative details.
When settling your estate, family members may find themselves buried in a barrage of paperwork. Keeping your list of assets up to date will help, but all of your securities will have to eventually be reregistered, which can be time-consuming, expensive and an administrative nightmare. Consolidate your assets and keep a detailed inventory of your securities. Your survivors will only have to provide information to reregister your securities one time.
>> Draft a will
A will is a written document that provides for the distribution of your property when you die. A will must go through probate. Wills are important because they allow you to determine how and to whom your assets will be distributed. If you die without a will, the distribution of your estate will be governed by state law. A will is also important if you have minor children, because it allows you to designate a guardian.
>> Reduce your probate estate
Probate is a process whereby the courts help carry out the provisions in your will. The probate estate consists of assets titled in a deceased person's name. It does not involve assets that pass to a beneficiary by contract, such as a life insurance policy, or assets that are owned jointly with another person. In some states, probate can result in additional cost and delay in the administration of an estate and a lack of privacy, since probate records are open to public scrutiny. With proper planning, you can keep the majority of your estate from probate and simplify the process for your heirs.
Guy Steele is a financial planner and head
of the Pali Palms office of Edward Jones. Send
planning and investing questions to him at 970
N. Kalaheo Ave., Suite C-210, Kailua, HI, 96734,
or by email at: gsteele2@pixi.com