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Anyone
who owns property--a home, a car, a bank account, investments,
business interests, a retirement plan account, collectibles,
personal belongings, etc.--needs an estate plan. An estate
plan allows you to direct how and to whom your property will
be distributed after your death. If you have no estate plan
at all, your property could be distributed according to your
state's intestacy laws without regard to family needs or your
desires.
Estate
planning is an ongoing process. For a young, single person,
an estate plan may consist of simply a Will. A couple just
starting out might have Wills and own a modest home and bank
accounts in their joint names. When children arrive, whom
to name as the children's guardian and how to provide for
them and your spouse in the event of unexpected death or incapacity
become estate planning concerns. And, once an individual starts
to realize his or her financial goals, asset preservation
and how to avoid estate taxes become important factors in
estate planning.
Many
people who carefully plan for income taxes don't give any
thought to estate taxes. They assume that estate taxes, unlike
income taxes, affect only people with large estates. However,
with so many dual-income families and the high value of real
estate in many areas of the country, people who consider themselves
of moderate means may have estates that will be subject to
federal estate tax at their deaths.
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