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Estate
Planning vs. Advanced Estate Planning
Who needs what? Whats the Difference? While it is absolutely
possible to die without planning your estate, I wouldn’t say it is advisable.
If you die without an estate plan, your family could face major legal issues
and (possibly) bitter disputes. So in my opinion, everyone should do some form
of estate planning. Your estate plan could include wills and trusts, life insurance,
disability insurance, a living will, a pre- or post-nuptial agreement, long-term
care insurance, power of attorney and more.
Why not just a will? Did you know that your heirs may need
to file a petition to probate your estate … even if you have a will? Basically,
a will tells the world what you’d like to have happen, but other items (like
properly prepared and funded trusts) can provide the tools to make things happen,
and help your heirs to avoid probate.
So, what is "advanced" estate planning? Advanced
estate planning is generally something those with a very high net worth should
consider. For example, if you are single and your net worth exceeds $1.5 million
dollars, or if you are married and (as a couple) your net worth exceeds $3.5
million dollars, you should consider advanced estate planning. The main purpose
of advanced estate planning is to reduce taxes. The use of unified credit,
gifting strategies, trusts and more can help your heirs receive the highest
benefits possible under federal and state laws.
Where do you begin? Whether you
need basic or advanced estate planning, I would advise you to speak with qualified
professionals. Your Financial Advisor can refer you to a good estate planning
attorney and a qualified tax professional, and lead a team effort to assist
you in drafting your legal documents. All of our financial professionals have
relationships with attorneys and accountants, and can refer you to the right
specialists.
This was prepared by Peter Montoya, Inc., not the named Representative or Broker/Dealer,
and should not be construed as investment advice. Neither the named Representative
or Broker/Dealer give tax or legal advice. All information is believed to be
from reliable sources; however, we make no representation as to its completeness
or accuracy. Please consult your Financial Advisor for further information.
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As of 2006 |
