Publications

The basic purpose of estate planning is to create an effective and sensible disposition of your property during life and at death. Each client is unique, so while there are certain standard techniques and tools available to the estate planner, there are no standard solutions or universal remedies suitable for all clients. Just as every patient expects individualized care and treatment from a physician, every estate planning client should expect and receive an individualized estate plan tailored to his or her own circumstances.

The Importance of Tax Planning in Your Estate Plan.
Tax reduction is one, albeit very important, goal of proper estate planning. If you consider the value of your home, the face value of your life insurance, the present value of your retirement plans, and the value of your personal investments, the total value of your assets may be much more than you initially estimate.

To see the effect the federal estate tax could have on your estate plan, consider the following: If you were to die tomorrow with a taxable estate of $800,000, the federal estate tax bill would be $47,250. If, instead, you were to die tomorrow with a taxable estate of $1,600,000, the federal estate tax bill would be $380,250 – a more than eightfold increase! In other words, the larger your taxable estate, the greater the impact of the federal estate tax.

The failure to engage in sensible estate planning can also result in increased estate administrative costs, particularly if ownership of assets is disputed or if heirs are uncertain of the decedent’s intentions. The financial impact of estate taxes and unnecessary administrative costs can result in estates losing 60% to 80% of their value. Thus, the importance of good estate planning should not be underestimated.