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 provides legal counsel in the areas of estate planning, estate settlement, and asset 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 author of the Arizona Estate Administration Answer Book and a prominent member of Wealth Counsel, LLC, 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. You would never leave your young children without a trusted babysitter and a customized set of instructions. So why risk leaving them for good without planning ahead? If you don’t designate a guardian, then a judge will be assigned to appoint one for 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. Estate planning includes a wide variety of techniques to reduce, defer and eliminate taxes. Of course there are techniques to avoid estate taxes upon death. However, did you know there are techniques to reduce the impact of income, capital gains, and estate taxes for your heirs? These are benefits you can give to them, which they cannot obtain by themselves.
- 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 want to implement legal strategies to protect their personal wealth. Estate planning offers a wide range of asset protection tools which can be incorporated into the overall plan.
About the Author
Thomas J. Bouman provides legal counsel in the areas of estate planning, estate settlement, and asset 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 author of the Arizona Estate Administration Answer Book and a prominent member of Wealth Counsel, LLC, the nation’s premiere organization of estate planning attorneys.