Key Benefits of an Estate Plan
By preparing an estate plan you can:
- Provide clear instructions for your medical care through the Advance Health Care Directive;
- Specify how your assets are to be managed through the Durable Power of Attorney;
- Simplify the process of transferring your assets to your beneficiaries — minimize probate costs, maintain privacy as to your assets and beneficiaries, and expedite the transfer of assets to your beneficiaries — with a revocable Trust;
- Choose how your assets will be distributed upon death; and
- Reduce or even eliminate estate tax liabilities through both revocable and irrevocable Trusts.
TAX BENEFITS
Federal estate and gift tax laws permit each US citizen or resident to transfer tax-free a cumulative amount of assets during life (Gift Tax Exemption) and upon death (Estate Tax Exemption). The exemption is the amount that you are allowed to transfer before taxes are assessed. A properly designed estate plan can reduce or even eliminate estate and gift tax liabilities.
AVOIDING PROBATE
Probate is the court supervised process of administering a Will. In cases where there is no Will, it is the process by which the court implements the state rules for distributing an estate.
DISADVANTAGES OF PROBATE
- The costs and fees of Probate may be significant, and the expense to administer an equivalent trust estate would typically be less;
- The amount of time it takes to complete the probate process averages from 9 months to 1 year, although easier or more complicated estates may be shorter or significantly longer; and
- There is a lack of privacy because Probate requires public disclosure of a decedent’s Will, financial affairs, assets, creditors, beneficiaries, and all other documents filed (all filed documents become a matter of public record).
A properly designed and funded estate plan can avoid the need for Probate.
If you have questions about our services, we would be happy to discuss how we can be of assistance. Please email us at info@yorozulaw.com or call 415.707.5000.