| If you're like most Americans, you like to give gifts nearly as much as you like to receive them, estate planning gifting is the perfect avenue for such generosity using an estate planning list. Luckily, if you're serious about estate planning gifting there's a handy technique called financial estate planning gifting that can potentially save your family, friends and heirs significant of money on estate taxes in the future through the estate planning probate process. |
| With estate planning gifting, you not only benefit yourself, you potentially save future generations from a heavy financial estate planning tax burden. In addition to a reduction in taxes, by reducing the size of your estate and estate planning list, you generally reduce the amount of estate planning probate costs and legal fees which can often eat away much of your estate. So what exactly is estate planning gifting? |
| ESTATE PLANNING GIFTING IS EXACTLY WHAT IT SOUNDS LIKE: a gift. It's a financial estate planning gift that can be given to a spouse, a family member, friend or anyone on your estate planning list. It's a technique that has been used frequently by people for financial estate planning to reduce the value of their estate and can be done several ways. |
| Each person in the U.S. can give assets or property of up to $11,000 a year through estate planning gifting. That amount applies to each individual on their estate planning list they gift to. This estate planning gifting can be given to basically anyone on the estate planning list without paying any gift taxes, as long as the amount gifted stays under the limit. You can give gifts, tax-free, to as many people on your estate planning list as you wish. You can also estate planning gift an unlimited amount of property to charity and your spouse. |
| By law, you can gift, through estate planning gifting, a spouse unlimited amounts of property each year without paying any taxes or going through estate planning probate. This isn't always suggested however, since it just shifts the larger estate burden, and potentially the estate planning probate burden onto your spouse. One helpful technique is to team up with your spouse and gift to specific estate planning list individuals, such as children and grandchildren. When you and a spouse get together conduct estate planning gifting, which the IRS has termed "gift splitting", you can give up to $22,000 to each individual without paying any gift tax and avoiding estate planning probate for that money. This allows you to quickly reduce your estate by a large amount by estate planning gifting to those on you estate planning list. |
| Gifting is also a great way to conduct financial estate planning by giving assets to your family that will end up appreciating in value. That way by financial estate planning, you not only reduce the amount that may be taxed in your estate, but you reduce the amount that your asset would have grown to by the time you passed away. |
| There are a great many details involving taxes and estates planning gifting that remain to be seen. The tax laws and regulations can get extremely complicated, which is why estate planning is best left up to qualified financial estate planning attorneys. But the main idea remains, estate planning gifting can probably save your estate and your estate planning list heirs money in the long run. |
| While estate planning is often put off because of the uncomfortable topic of death, it may be one of the most important financial estate planning tools available. It may also be one of the most important ways to save your estate planning list of heirs from heartache. A little financial estate planning and preparation of an estate planning list regarding your estate planning gifting can go a long way to avoiding huge estate planning probate problems down the road. |
| Estate planning gifting is simply one of the many convenient ways to leave a legacy that remembers your life for its accomplishments instead of courtroom battles. Whenever contemplating estate planning gifting, or establishing financial estate planning and an estate planning list, it's best to meet with a qualified estate planning attorney to prepare your financial estate plan to effectuate your objectives and avoid estate planning probate. A little bit of careful financial estate planning can go a long way. In the end, estate planning gifting allows you to take advantage of tax savings and choose the way you want to be remembered (through your estate planning list), which is truly a gift that will keep on giving. |
| A popular estate planning attorney "horror story" is the estate of Elis Presley. When Elvis Presley died, his estate was worth over $10 million dollars (not a bad amount in the early 1970's). Then it went through estate planning probate, since no financial estate planning had been done. After estate planning probate including appraisal costs, legal fees, executor's fees, and estate taxes, "The King's" estate was left with only $3 million net. Improper estate planning cost Elvi's estate planning list heirs, a whopping 73% of Elvis' estate. The idea here is to learn from that financial estate planning grotesque mistake and avoid it for you and your family through proper financial estate planning and estate planning probate, when applicable. |
| ESTATE PLANNING PROBATE : Probate is the (typically lengthy) process of demonstrating if a will is valid, clearing your estate of any debt, and making sure that no one challenges it. All of this takes place in court, which adds to the expense. Will or no will, an estate must typically go through estate planning probate. |
| But there are ways to reduce or eliminate costs associated with the complicated legal process of estate planning probate. One of the most efficient includes establishing a trust, a form of financial estate planning involving an estate planning list. Assets and property within a properly drafted trust don't have to pass through probate. On top of that, upon death, assets are passed on relatively quickly, especially when compared with estate planning probate. Your assets are also more protected from creditors when placed in a trust. And of course, the trust set up does not affect estate planning gifting. |
| But trusts aren't your only option for financial estate planning. If you choose not to establish a trust, there are several ways you can help reduce costs. One of the best and easiest ways is to be prepared with an estate planning list. |
| If you have a 401(k), an IRA, a life insurance policy, or all three, then you have three separate beneficiaries to name for financial estate planning purposes. By routinely updating your beneficiary designation, you avoid unwanted inheritances and ensure that your wishes are carried out outside estate planning probate. Any assets that pass through beneficiary designations or estate planning list aren't subject to probate, which makes their accuracy even more crucial. |
| You can also choose to own assets jointly with another from your estate planning list. From stocks to houses, if you own something jointly, that financial estate planning property is passed onto the survivor automatically.
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| Also, many brokerage houses and banks allow you to name a beneficiary or estate planning list on your personal accounts by establishing a TOD (Transfer on Death) account. It's one more way that your financial estate planning assets will pass relatively quickly and easily to whomever you wish. Upon death, your estate planning gifting accounts and their contents will be passed to whomever you've named on your estate planning list.
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| One other option is estate planning gifting of your assets to family or friends before you pass away. By estate planning gifting the maximum tax-free amount each year ($11,000 in 2005), you reduce the amount of your estate, which, in turn usually reduces the amount of estate planning probate costs, which are usually based on the total estate value. |
| By properly planning your financial estate planning with a financial professional and an estate planning attorney, you can increase your chances of decreasing estate planning probate costs and avoiding costly mistakes. While not many people like to discuss their own mortality, the thought of family, friends, or charity losing large percentages of their inheritance and your estate to costs, fees, taxes, and estate planning probate fees should be enough for anyone to start planning. |
| While Elvi's financial estate planning may have been improperly managed early-on, since being bought out by his former estate planning list wife, Priscilla and their daughter, Lisa Marie, it has become a major success story. With proper management it has grown from a paltry $3 million, to approximately $250 million.
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| The lesson to be learned lies in the stark contrast between proper and improper estate management and financial estate planning, and shows how important an financial estate planning, estate planning gifting, and estate planning probate is, whether you're "the King", or not. |
| Deciding how you want to distribute wealth and assets to your estate planning list after you're gone can be one of the most important decisions you make. Do you want your legacy to be judged by your entire life or by a bitter estate planning probate battle over your assets? |
| People often avoid the issue of death, but in the case of financial estate planning, it's really about focusing on life and the loved ones on your estate planning list. You're no doubt proud of your accomplishments in life, no matter what they may be. Your children, your career or your impact on others lives these are the important things in life. |
| Financial estate planning remains one of the ways you can protect yourself and your estate planning list loved ones after you're gone. With the proper techniques and financial estate planning, you can help ensure that you're remembered for the impact you had on your community and your world through estate planning gifting. In the event of an accident or other medical emergencies, you should be prepared and avoid estate planning probate. |
| In addition to a medical power of attorney and a living will, which spell out what medical treatments you wish to have in the event of an emergency and who from your estate planning list will speak for you, you should prepare a will and a financial power of attorney. These financial estate planning documents will save your family from much of the heartache of estate planning probate and hurt feelings that goes with dividing up estates among your estate planning list and making financial decisions. |
| While most Americans are familiar with wills, many still do not have them or any other financial estate planning. Wills can be as complex or as simple as you wish and can directly spell out who on your estate planning list you want to receive your assets after your death. |
| As part of creating your will, you will choose an executor, the person who will oversee the process. Your executor should be financially savvy and have the energy and ability to carry out your wishes financial estate planning. A family member isn't always the best choice, and you may want to consult with your financial estate planning professional on appropriate alternatives such as estate planning gifting. |
| A financial power of attorney grants the responsibility for the financial estate planning decisions regarding your estate. You choose who you designate as your representative. Your financial estate planning power of attorney can also be your medical power of attorney, but it doesn't have to be. In many cases, your spouse is both, however, it's important to name a back-up (or successor), in case your spouse is also injured or passes away. |
| Wills and a financial power of attorney, along with a living-will and a medical power of attorney, make up the four basic documents and preparations of estate planning which, along with estate planning gifting can help avoid estate planning probate. |
| They are, however, only a few of the many options you have when it comes to deciding what your financial estate planning legacy will be. Trusts, insurance and other options exist, as well as several other tax strategies that can be utilized in your estate planning list. Your estate planning attorney can help in planning the entire process.
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| McFarlin & Geurts, LLP estate planning attorneys have the expertise and experience to advise you on these and many other financial estate planning matters to help avoid estate planning probate and maximize your inheritance to heirs or beneficiaries. |
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