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ITEMS TO CONSIDER BEFORE MEETING WITH AN ESTATE PLANNING ATTORNEY
© 2008 Rosepink & Estes, P.L.L.C.
There are several topics which persons should consider prior to meeting with the attorney who will prepare his or her estate planning documents.
1. GUARDIANS FOR MINOR CHILDREN.
Who is best able to cope with the raising of minor children? A brother, sister, or a close friend may be a better choice than a grandparent.
Factors to consider would include: Ages of proposed guardians and their children; ages of your children and number of them now minors; and health and financial situation of all parties. Decide on alternative choices, in the event your first choice is unwilling or unable to serve should death occur while the children are still minors. If you name a couple as guardians and one of them dies, would you want the surviving co-guardian to act as sole guardian? What if they divorce?
2. PERSONAL REPRESENTATIVE (EXECUTOR) OF THE ESTATE.
If all or part of your estate passes through probate, whom do you want to handle the details of paying your debts and death taxes and distributing the remaining assets to the beneficiaries named in your Will?
3. LIVING TRUST.
Is it important to you to avoid probate? Is privacy after your death important to you? Make a list of your assets and approximate values, along with a list of mortgages on any property. If you own real or personal property in more than on state you can avoid the expense and effort of probates in multiple states with proper planning. Your attorney can give you an estimate of what it will cost your heirs to pass your estate through probate.
The Living Trust is frequently used to avoid or reduce these expenses. Ask your attorney to explain the advantages and disadvantages of this type of trust.
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4. TRUSTEE.
If you have a trust, either in your Will or a separate Living Trust, you will need to name a trustee to manage investments, pay taxes, make distributions, etc. In the event she or he dies, you will want to provide for one or more successor trustees.
5. A CORPORATE OR INDIVIDUAL FIDUCIARY.
Executors and Trustees are referred to as fiduciaries, because of the higher standard of care which is required of them in managing the assets of another person. Consider your own estate and assets relative to the list of advantages shown below.
Advantages of a Corporate Fiduciary
Advantages of an Individual Fiduciary
SUGGESTION: Some people prefer the use of both an Individual and a Corporate Trustee, as co-trustees, to obtain the advantages or each.
6. AFTER YOUR DEATH(S) SHOULD THE FAMILY REMAIN IN THE PRESENT HOUSE?
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7. IS IT IMPORTANT TO REDUCE YOUR DEATH TAX OBLIGATION?
You should discuss with your attorney exactly what is included and what is not when calculated how much tax is due at your death.
8. DISTRIBUTIONS TO CHILDREN.
If you do not want your assets distributed outright to your children in the event of your demise, a continuing trust or trusts should be considered. The Trustee can attend to your children’s needs, including health, education, and maintenance, as you direct.
Many people like to distribute a portion of the estate at several different times; e.g., 1/3 at 21, 1/3 at 25, and 1/3 at 30; or all of the income after age 25 and principal distributed at age 35, etc.
Your preference for distributions of income:
_________________________________________________________
Your preference for distributions of principal:
_______ at age _____ ; _______ at age _____ ; _______ at age _____
9. FINAL HEIRS.
In the event that you children die in a common accident with you, or if your children predecease you, to whom would you want you estate to pass? For example, ½ to the husband’s side of the family (e.g., parents, brothers, sisters, etc.) and ½ to the wife’s side.
10. CHARITABLE BEQUESTS.
Would you be interested in making any charitable bequests, especially if it reduced your income and death taxes?
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