Estate Planning Definition
Process of accumulation, management, conservation, and transfer of wealth, considering legal, tax, and personal objectives
Goal of Estate Planning
Efficient Transfers and Effective transfers
Effective Transfer
Occurs when a persons assets are transferred to the person or institution intended by the transferor
Efficient Transfer
Occurs when transfer costs are minimized consistent with the greatest assurance of effectiveness
Estate Planning Goals and Objectives
1. Fulfill healthcare decisions
2. Provide needed liquidity at death
3. Maximize net assets to heirs
4. Fulfill property transfer wishes
5. Minimize transfer taxes
6. Minimize transfer costs
Who needs Estate Planning
Everybody
Seven Basic Steps to Estate Planning
- Gather client information
- Establish estate planning objectives
- Analyze current plan and alternatives
- Develop a comprehensive plan
- Present recommendations
- Implement the plan
- Review and update as needed
Heirs
those who inherit under state law (family)
Legatees
Those who receive property under a will
Probate Process
Legal proceeding that insures orderly distribution of assets during a transfer