According to PriceWaterhouseCoopers there are several elements when it comes to estate and gift tax planning—“including gifting policies, the amount of property involved, resident or domicile status, the availability of deductions, and exclusions and credits. It’s important to understand US federal rules in this area; proper planning should also include a review of the rules in the state of residence, as those rules may also influence planning.” With estate planning you can determine:
- How and by whom your assets will be managed for your benefit during your lifetime if you ever become unable to manage them yourself.
- When and under what circumstances it makes sense to distribute your assets during your lifetime.
- How and to whom your assets will be distributed after your death.
- How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself.
It is extremely important to plan ahead so that there is no question or doubt as to the future of your assets and estate. It doesn’t matter how much money you have or how old you are, everyone needs to plan their estate. If you’re married you need to sit down with your spouse and discuss your wills together and how you want distribute your assets. Although planning for your future can be somewhat scary and depressing you must take matters into your own hands, not only for yourself but for your loved ones.
Sources: http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10581&id=2206
http://www.forbes.com/2009/09/02/estate-financial-planning-forbes-woman-net-worth-guide.html
http://www.pwc.com/en_US/us/private-company-services/pdf/gyb_vol_60_estate_planning.pdf
I completely agree with this post. No time is too soon to start planning for the future of your assets. -Laura Reginelli
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