Estate Planning is not death
preparation; it is a rational approach to protecting the
client and the client's family from involuntary creditors and
meeting their unique needs during the client's life and after
death. Although reduction of income, estate, gift and
generation-skipping transfer taxes represents an important
part of estate planning, there are several critical, non-tax
elements in the process. These elements include:
naming a guardian for minor children;
ensuring the availability of funds for family members;
avoiding guardianship proceedings and naming an agent to
manage your financial affairs and to make health-care
decisions in the event of incapacity;
implementing a mechanism for the orderly transfer of
assets after death;
avoiding conflict among family members;
assuring that supplemental benefits are available to
family members with special needs;
covering education expenses;
Planned giving to worthy tax-exempt organizations; and
owning assets in such a manner as to protect them to the
greatest extent legally possible from the claims of
creditors. This list is by no means exhaustive.
The tools available to achieve the
client's goals vary depending on individual circumstances,
however some tools common to most cases involve:
a Last Will & Testament;
one or more of various types of Trusts that go into
effect either during life or after death;
Correctly completing retirement plan and life insurance
policy Beneficiary Forms;
Durable Power of Attorney that names an agent to manage
your finances; (5) Advance Directive for Health Care,
popularly called a "Living Will."
Philanthropy or "Planned
Giving" offers the client an opportunity to maximize the
impact of the client's "social capital" for the
benefit of both the community and the client. A percentage of
every dollar a person earns is dedicated to "the common
good." The only question is whether the government
decides how it is spent (taxes) or if the earner selects the
recipients (philanthropy). Tax deductions reduce the burden of
involuntary giving in favor of voluntary philanthropy. The
tools and techniques of philanthropy range from annual
donations to your favorite charities to establishing trusts or
foundations and transferring total or partial interests in
real property. The non-tax reasons for planned giving include:
nurturing responsibility and a sense of community
involvement in younger generations;
building a legacy through endowments;
directly improving the quality of life in the client's
community;
and realizing a sense of self satisfaction. Exposure to
the wide range of options available may open up a fresh,
fulfilling world to the client and the client's family.
Attorney-
at- Law
35 Court Street
Freehold, New Jersey 07728