Who do I want to receive my property at my death?

Who should be the contingent beneficiaries if my primary ones don't survive me?

How can I reduce the federal and state death taxes my family will have to pay?

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 determined 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.

Death taxes and estate expenses cannot be minimized.

You can choose who will wind up your affairs after your death.

You can make gifts of specific assets (e.g., jewelry or family heirlooms) to named individuals.

You can name both primary and contingent beneficiaries to receive the residue of your estate.

You can make charitable bequests.

 

Understand which of your assets will pass under your Will, and which will not.

 

Good planning includes COORDINATING how each of your assets will pass at death, so that there will be a consistent result.

 

Property will pass in accordance with how it is titled:   Jointly owned property with right of survivorship:

● Passes directly to the surviving owners, not under your Will.

       ● Includes husband and wife property.

Beneficiary-designation property (retirement accounts, annuities, life insurance)

● Will pass directly to the persons you have named as beneficiaries, unless the beneficiary is your "estate."

Contractual property

● Examples are death-time benefits payable under a deferred compensation plan, or the proceeds of sale of closely-held stock under a buy-sell agreement.

● Will pass to the persons designated in the contract.

 

Solely owned property -- May be all that will pass under your Will!

 

 

 

It is important to choose the right executors, guardians (for any minor children), and trustees.

 

They should have both the TIME and TALENT to do a good job.

 

You can establish trusts for beneficiaries such as minor children or grandchildren, elderly parents, or others who may be unable to manage their bequest.

Special planning is required for intended beneficiaries who are currently receiving (or may be eligible in the future to receive) S.S.I. or Medicaid benefits, since your bequest to them may render them ineligible for such benefits.

 

The Revocable Lifetime Trust can provide that at your death any assets remaining in the Trust will pass directly to your designated beneficiaries.   The Trust will also avoid probate.

The Revocable Lifetime Trust and Durable Power of Attorney may authorize lifetime gifts of your property to designated family members.

 

A Will (called a "Pour Over Will") is still needed, even if you have a Revocable Lifetime Trust.   The Will can dispose of any assets that are not held in the Trust at your death.