Estate Planning Information - Avoid Estate Taxes as high
as 55- 60%
That's right folks over half of your family's wealth can be lost to our
beloved federal and state authorities. At its most basic Proper Estate Planning Information will address the
questions of who, what, where, why and how.
To Who do you want your wealth transferred. What do you want transferred. Where do you get proper advice. Why do
you need estate planning. When do should you transfer your assets and How can you best achieve this transfer.
Estate Planning Information:
Lets Address the Issue of Why. It may not be well known but
your government because of the concept of "sovereign right" has according to law the right to property that
precedes and supercedes your rights as a property owner. This is in order to serve the public good and protect the
rights of the public in general. Thus the government can seize and acquire a property needed for public purposes
without your conscent. It also gives them the authority to put restrictions on how you can transfer property even
in death. Proper Estate Planning Information must address 5 key areas.
5 Key Areas of Estate Planning Information
1- Providing a Valid Will: If there is no will the ownership and distribution of the property
will be controlled by the State.
2- Providing for Formal Administration of the Estate: Adminsitrative laws in each State
determine how property is assessed and will be distributed.
3- Providing for Payment of Debts and Claims: If assets are not sufficient to pay off the
owners' creditors the State wil prioritise disbursements.
4- Providing for Payment of State Levied Taxes: This may be a State Estate Tax or a State
Inheritance Tax or both.
5- Providing for Payment of Federal Estate Taxes: Estates that exceed the one-time federal
credit or as a result of inadequate estate plannining will have a federal tax imposed on the total value of the
property transferred to ones hiers.
If you are thinking this can turn out to be expensive you are right. Covering all areas of estate planning
information takes time and money particularily if it isn't addressed ahead of time.
Fact: Today the typical length of time of probate (process of wealth transfer using a will) is
now 12 to 18 months. Longer if the will is contested. What time lag can we expect to have in the future? You may
with to contact your estate planning attorney to develop some alternate asset protection strategies.
Fact: We are expecting the greatest transfer of wealth to the baby boom generation ever. Don't
wait, maybe now is the right time time to approach an estate planning attorney.