Estate Planning: A Life Priority

Estate Planning: A Life Priority

by Moster Wynne, Attorneys at Law

Why Plan?

Estate planning is all about you, your family, and your estate. Through an effective estate plan, you can live on, in and through your family, your estate, your hopes, plans and dreams. It's important to overcome the reluctance to spend time and money for proper estate planning because it’s about taking responsibility to ensure that your estate – everything you own and control – is preserved and used for the benefit of those you love.

This is particularly important if you are an entrepreneur or own even a minority percentage of a business. Often, the largest and most important revenue-producing asset is your ownership in an existing business. Proper planning encourages you to concurrently address both your personal and your company’s risk management plans because they are intimately linked and have a continuous impact on one another.

What is “Estate Planning?”

The term "estate planning" does not describe a single, simple activity. Rather, it comprises a range of actions designed to achieve two major goals. The first and foremost of these is to ensure that the property which has been accumulated over a lifetime is used and distributed, both prior to and after death, in a manner which is consistent with your desires. The second is to help preserve this accumulated property by taking steps to minimize the taxes that can cut into an estate, both prior to, and upon your passing.

Virtually every person in the country who has income and owns property needs estate planning in some form or another. A common misconception, and subsequent cause of reluctance to become involved, is the notion that estate planning is only for persons with large estates. While those who gain the most are generally those who have already accumulated substantial estates, many property owners wrongly feel that they do not own enough assets to make estate planning worthwhile.

Factors to Consider

To grasp the importance of proper planning, consider what falls under the rubric of estate planning:

Estate Creation

Good planning, started early enough, will help to create the estate that ultimately is to be passed on to your heirs. Thus, minimization of current income taxes and the selection of investments on the basis of long-term as wel’l as short-term goals are important estate planning facets.

Estate Conservation

The conservation of capital, especially in the form of minimization of taxes, is a very important aspect of estate planning. Thus, the need for planning for this purpose follows closely on the heels of estate creation.

Retirement and Disability

In the broader sense of the term, estate planning includes planning for the your future needs as the estate owner, not just those of your family after your passing. Thus, a good estate plan must focus on financing the retirement years and
look at sometimes-unpalatable contingencies, such as a total inability to work.

Death and Equity

Estate planning forces you to make decisions, sometimes difficult decisions, about what you want to happen after your death. People who are prompted to overcome their reluctance to make plans associated with their own deaths generally think about two questions. The first is, “Who will get my estate?” The second is, “Will there be enough at my death to take care of my family properly?” Proper planning addresses both questions, and provides peace of mind to those touched by the estate.

Liquidity

The vast majority of people in this country are, comparatively speaking, asset rich and cash poor. Good planning provides that the necessary cash will be made available to address the emerging needs of you, your family, and all others involved in the estate.

Act NOW!

The word "plan" is very important. Estate planning is not for the "then” – whenever that might be – it is for the "now." You must have a plan and the plan must be formalized. You can live on, but only if you plan… and plan NOW!
Why MOSTER WYNNE?

MOSTER WYNNE provides comprehensive services in the area of Estate and Trust Law. The Firm represents clients in the preparation of a wide range of estate services including the drafting of wills, trusts, personal directives, estate tax, and litigation, among others. The key components of this practice area include:

·    Drafting of Wills & Trust Instruments
·    Advance Directives
·    Tax Planning Services

MOSTER & WYNNE, P.C.

MOSTER WYNNE is a legal and consulting firm focused on a wide range of business law services.  Our dynamic staff of attorneys allows us to work proactively to develop timely and creative solutions to our clients' legal and business issues. A unique aspect of MOSTER WYNNE is our approach to serving all of our clients' legal needs under the umbrella of our General Counsel Program.