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PLANNING FOR TRANSFER OF PROPERTY AT DEATH
QUESTIONS
TO CONSIDER
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Whom do I want to
receive my property at my death?
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What about contingent beneficiaries if my
primary ones don't survive me?
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How can I reduce the death taxes my family will have to
pay?
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WHY Everyone needs a will
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If you die without a valid will, state law will dictate who will (and
who will not) take your
property and who will have the right to administer
your estate. |
Your property will
pass outright to your "heirs," as defined by state law, in pre-determined shares.
If an heir is a minor or incapacitated at that time, a court-supervised
guardianship will likely be imposed.
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Death taxes and
estate expenses cannot be minimized.
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Advantages
to Having a Will
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You
can choose who will wind up your affairs after your death.
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You can make gifts of
specific assets to named individuals.
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You can name
both primary and contingent beneficiaries of the rest of your estate.
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You can make charitable
bequests.
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But only having a Will
may not be enough!
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Understand which of your assets will pass under your Will, and which will pass
outside it. |
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Good planning includes COORDINATING how
each of your
assets will pass at death, so that there will be a consistent result. |
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Property will pass in
accordance with the nature of the asset: |
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Jointly owned
property with right of survivorship: |
Passes directly to the surviving owners, not under your Will.
Includes husband and wife property.
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Beneficiary-designation property
(retirement accounts, annuities, life insurance) |
Will
pass directly to the beneficiaries.
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Contractual property |
Will pass per the terms of the contract.
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Solely owned property
May be all that will pass under your
Will. |
CHOICE OF FIDUCIARIES
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It is important to choose the right executors, guardians, and trustees. |
As with trustees, they should have both the TIME AND TALENT to do a good job.
Special planning needs for A minor, disabled, or elderly beneficiary
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You can establish trusts for beneficiaries such as minor children or
grandchildren, elderly parents, or others who may be unable to manage their
bequest.
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Special planning is required for intended
beneficiaries who may be concerned with present or future MEDICAID ELIGIBILITY
for themselves.
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See Article on
Planning for Families with Disabled Children on this web site.
MAKING LIFETIME AND DEATH-TIME PLANNING WORK
TOGETHER
Unique Advantages of Revocable Lifetime Trust
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The Revocable Lifetime Trust can provide that at
your death any assets will pass directly to your designated beneficiaries.
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The Trust will also avoid probate.
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The
Revocable Lifetime Trust and Durable Power of Attorney may authorize
lifetime gifts of your property to designated family members.
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A Will (called a "Pour Over Will") is still needed, even if you have a Revocable Lifetime Trust.
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The
Will can distribute any assets that are not
held in the Trust at your death.
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