What is Estate Planning?
Estate planning is the process of organizing one’s property and resources in a manner that best assures their proper use and management in the event of extended incapacity or death.
The primary objectives of estate planning, in the usual order of priority, are:
About the Author
Thomas J. Bouman focuses his practice on estate planning and inheritance protection. He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. Mr. Bouman is the author of the Arizona Estate Administration Answer Book and a prominent member of WealthCounsel, the nation’s premiere organization of estate planning attorneys.
The primary objectives of estate planning, in the usual order of priority, are:
- Fulfill parenting responsibilities. Parents of young children would never leave their children for an evening without a trusted babysitter and a customized set of instructions. So why risk leaving them forever without any planning at all? If you fail to designate a guardian or prepare an estate plan, and you don’t make it back, then the government will need to make decisions regarding your children without any input from you.
- Get organized. A comprehensive estate plan is usually designed to avoid the court-supervised probate process after death. Even a simple probate might trigger unnecessary legal fees, invite disgruntled heirs to contest the Will, and possibly delay the distribution of your estate. An estate plan should also include a mechanism to avoid the need for a court-appointed conservator or guardian in the event of your extended incapacity.
- Promote self-control. Even financially savvy heirs can have trouble handling a sudden windfall, so imagine the damage that can be done by inexperienced, immature, or emotionally unstable beneficiaries. In your estate plan, you can direct when, how and for what purpose your assets should be distributed. Instead of outright distribution, you might prefer to leave inheritance in a manner that you know will help your beneficiaries rather than hurt them.
- Model good stewardship. A comprehensive estate plan permits the use of an assortment of well-established techniques to reduce, defer and eliminate taxes. These taxes may include income, capital gains, gift, and estate taxes.
- Asset protection. The demand for legal strategies to protect personal assets has never been higher. Always an important consideration for business owners and professionals in high-risk occupations, today’s litigious society means that more people choose to implement legal strategies to protect their accumulated wealth.
About the Author
Thomas J. Bouman focuses his practice on estate planning and inheritance protection. He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. Mr. Bouman is the author of the Arizona Estate Administration Answer Book and a prominent member of WealthCounsel, the nation’s premiere organization of estate planning attorneys.