Estate
Planning Basics
___________________
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Wills, Trust
& Estate Plans
What
is an Estate Plan? _________
Simply
stated, an estate is the collective assets,
large or small, a person owns when he or she dies.
A person's estate is distributed to his or her
heirs according to dictates of a will or trust.
If there's no will or trust, then the estate passes
according to the laws of the state.
If
the estate is distributed by a will or
by the laws of the state, it requires a court
process called probate. There are several reasons
to avoid probate. Probate is a lengthy process
which delays the fulfillment of your wishes. It
is a matter of public record and the process of
estate administration can sometimes result in
controversies and litigation that may incur additional
expense.
Estate
planning, on the other hand, prepares
for the orderly handling, disposition, and administration
of an estate. Estate planning includes drawing
up a will, establishing trusts, and taking the
steps necessary to minimize estate taxes.
A
well-designed estate plan allows you to decide
the outcome. It can preserve more of your assets
and allow you to pass them to the people and causes
you care about most.
While
most people are familiar with a will,
many don't realize its limitations, regardless
of how carefully it is constructed. Many people
mistakenly assume that a will is all that's necessary,
when a more comprehensive approach is actually
needed. Even a modest estate may gain
substantial benefits from a professionally designed
estate plan.
What is a Trust?
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A
trust is a very personal and carefully designed
document. It may be the best solution
for addressing the complexities associated with
preserving assets while providing for the future
benefit of your heirs.
There
are two broad types of trust. A living
trust takes effect during the owner's lifetime
and a testamentary trust takes effect upon the
owner's death. Under certain circumstances, a
trust can help you:
- Take
advantage of tax credits available to you, your
estate, and your beneficiaries
-
Maximize the assets available for distribution
to your beneficiaries
-
Direct the distribution of assets to specified
individuals or organizations
-
Secure the continued care and financial support
of loved ones who are elderly, disabled, or
financially inexperienced
- Provide
for loved ones in a way which reduces complexity
and cost to them
-
Minimize court and legal involvement
-
Ensure ongoing management of assets should you
become unable to do so
-
Maintain privacy
- Achieve
personal charitable giving goals
Is
a Living Trust enough? __________
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A living trust may avoid probate but it will not
reduce or eliminate estate taxes without additional
planning.
Is
it expensive to have an estate plan?
The cost of developing and setting in place an
estate plan depends on the complexity of your
situation and size of your estate. There are some
attorneys who perform these services for a flat
fee. However, the cost of estate planning is generally
small compared to what you're likely to save with
a well constructed estate plan.
Gospel
for Asia has joined with PhilanthroCorp
to offer our donors professional counsel without
cost in many cases.
How
can I learn more? ________________
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Request a free phone conference with one of PhilanthroCorp's
Estate Specialists. They will be happy to help
you. Call 800-876-7958 ext 2127,
or email (click
here)
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