Basics you need to know
Estate planning is a process that allows individuals and families manage and transfer their assets
during their lives, if they are incapacitated, or upon death. Most people would benefit from an
estate plan, even if they are not wealthy. Such a plan can be simple or elaborate, but it allows
you to protect your loved ones and ensures that your wishes are accomplished. While I do not
provide financial advice, I can draft the necessary legal documents to accomplish your goals.
In general, your estate includes everything you own, including:
- Real Estate such as houses, land, and other real property.
- Financial Assets like bank accounts, investments, stocks, bonds, retirement accounts
(401k, IRAs), pensions, life insurance policies, and business interests. - Personal Possessions like cars, jewelry, artwork, and other valuables.
- Digital Assets such as online accounts, social media profiles, digital currencies, and
intellectual property.
Estate planning can help you:
- Ensure Your Wishes are Honored, by specifying who will inherit your assets and how
they should be distributed. - Minimize Taxes. Most estates are no longer subject to the federal estate, but some assets
can be taxed by the state (in the probate process), and some assets like retirement may be
subject to income taxes after they are inherited. Trusts and strategic gifting can help
reduce probate fees and inheritance taxes. - Avoid Probate, the legal process of administering an estate, which can be time-
consuming, costly, and public. An asset can pass to an heir without going through
probate, such as what occurs with beneficiary designations. - Protect Your Family by designating guardians for minor children and providing care for
dependent adults. - Plan for Incapacity by durable powers of attorney and healthcare directives that appoint
trusted individuals to make decisions on your behalf if you cannot make them yourself. - Give to charities and causes you support.
To do this, I suggest approaches and documents that include:
- Using Beneficiary Designations on accounts like life insurance and retirement plans to
transfer assets at death without need of a will or the requirements of probate. - A Will that determines amount and timing of distribution of assets, appoints an executor,
and names guardians for minors. - Trusts which will hold assets for beneficiaries, direct the timing of distributions, help
avoid probate, and reduce estate taxes. - Powers of Attorney (POAs) that give authority to a trusted family member or friend to
manage financial and legal matters if you are incapacitated. - Healthcare Directives like Living Wills and Medical POAs that state your medical
preferences and designate a healthcare agent if you cannot make your own decisions. - A Letter of Instruction that provides guidance to your heirs and executor.
To create an estate plan, I suggest that you:
- Catalog all your assets and debts.
- Define your specific goals for the plan.
- If you have a financial advisor, speak with them about your goals and get their input.
- Determine individuals to serve as executor, trustee, and guardians.
- Consult with an attorney to draft necessary documents like a will, trust, power of
attorney, and healthcare directive. - Ensure beneficiary designations are current and represent your desires.
- Store all key documents securely and inform your representatives of their location.
- Periodically update your plan to reflect changing desires and significant life events.
I am ready to assist in making your plan a reality. Please contact me at
davidjtoscano@gmail.com to make an appointment.
