Estate Planning

Leave more of your legacy to your loved ones through estate planning

Components of an estate plan Who should have an estate plan?

What is an estate plan?

Many of us are so busy trying to build our assets that we neglect to take the time to ensure that we conserve them for the people or organizations we want to share them with after our death. The solution is to carefully plan your estate now, so that you can reduce its tax burden later — enabling you to distribute more of your assets to your beneficiaries.

Estate planning is not only for the very wealthy. If you own assets, you have an estate. And without proper planning, over half of the value of that estate could be lost due to federal estate taxes at your death. Do you want the IRS to be the single largest beneficiary of your estate?

People frequently underestimate the value of their estate. If you consider the value of your home, cash, investments, pension benefits, personal property, trusts, life insurance and other assets, you are probably worth a lot more than you think.

Thoughtful and comprehensive estate planning involves ways to reduce taxes and to make sure that your beneficiaries receive as much of your estate as possible. As your circumstances change, so too should your estate plan.

The regulations covering estate planning issues tend to be complex but should not be a deterrent to undertaking this important task. To help you make informed choices about the structure of your estate plan, you should seek the advice of an estate planning professional.

Components of an estate plan

Each estate plan varies according to the owner's assets, needs, wishes and goals. But in general, common estate planning techniques include:

• An inventory and assessment of assets
  This includes your home(s), savings, investments, benefits from your pension and other retirement plans (such as your 403(b), 401(k) and other plans), trusts, life insurance and other personal property.
• Recommendations for realigning assets, if necessary
  In some cases, it might make sense to make adjustments in certain assets to gain more tax and other benefits.
• Applicable tax benefits
  These include, for instance, the unlimited marital deduction, unified tax credit and annual exclusion gifts.
• Proper titling of assets
  This establishes ownership of your assets.
• Key estate planning documents
  These include a will, a living will and a durable power of attorney.
• A trust
  A trust is a legal instrument that you use to make certain provisions for your beneficiaries; trusts can often provide tax benefits.
• Life insurance coverage
  This is especially important when one spouse does not work and for families dependent on two incomes. The tax advantages offered by life insurance make it a wise estate planning tool for many people.
• Long-term care insurance
  The tremendous costs of long-term care in your home or a nursing home can devastate your estate if you don't properly plan.
• Thorough recordkeeping
  It is important to organize your records, not only for your own benefit but also to aid people who need to work on your affairs at some point.

Who should have an estate plan?

Anyone who owns assets and wishes to protect them for beneficiaries should develop and implement an estate plan.

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Dearborn & Creggs Can Help

Regardless of its size, your estate is important. You've worked too hard to obtain the assets you have; don't let their value be slashed at your death by unnecessary taxes. Take the time and opportunity now to explore the many options for creating an estate plan to protect your assets — and your beneficiaries.

By working closely with your other professional advisors, such as your attorney and accountant, your Dearborn & Creggs financial representative can provide valuable coordination in carefully structuring your estate plan. We look forward to working with you.