Estate planning is the preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.
Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated.
Assets that could make up an individual’s estate include houses, cars, stocks, artwork, life insurance, pensions, and debt. Individuals have various reasons for planning an estate, such as preserving family wealth, providing for a surviving spouse and children, funding children’s or grandchildren’s education, or leaving their legacy behind to a charitable cause.
The most basic step in estate planning involves writing a will. Other major estate planning tasks include the following:
A will is a legal document created to provide instructions on how an individual’s property and custody of minor children, if any, should be handled after death. The individual expresses their wishes through the document and names a trustee or executor that they trust to fulfill their stated intentions. The will also indicates whether a trust should be created after death. Depending on the estate owner’s intentions, a trust can go into effect during their lifetime (living trust) or after their death (testamentary trust).
The authenticity of a will is determined through a legal process known as probate. Probate is the first step taken in administering the estate of a deceased person and distributing assets to the beneficiaries. When an individual dies, the custodian of the will must take the will to the probate court or to the executor named in the will within 30 days of the death of the testator.
The probate process is a court-supervised procedure in which the authenticity of the will left behind is proved to be valid and accepted as the true last testament of the deceased. The court officially appoints the executor named in the will, which, in turn, gives the executor the legal power to act on behalf of the deceased.
The legal personal representative or executor approved by the court is responsible for locating and overseeing all the assets of the deceased. The executor has to estimate the value of the estate by using either the date of death value or the alternative valuation date, as provided in the Internal Revenue Code (IRC). A list of assets that need to be assessed during probate includes retirement accounts, bank accounts, stocks and bonds, real estate property, jewelry, and any other items of value. Most assets that are subject to probate administration come under the supervision of the probate court in the place where the decedent lived at death.
The exception is real estate, which must be probated in the county in which it is located.
The executor also has to pay off any taxes and debt owed by the deceased from the estate. Creditors usually have a limited amount of time from the date they were notified of the testator’s death to make claims against the estate for money owed to them. Claims that are rejected by the executor can be taken to court where a probate judge will have the final say as to whether or not the claim is valid. The executor is also responsible for filing the final personal income tax returns on behalf of the deceased. After the inventory of the estate has been taken, the value of assets calculated, and taxes and debt paid off, the executor will then seek authorization from the court to distribute whatever is left of the estate to the beneficiaries.
Federal and state taxes applied to an estate can considerably reduce its value before assets are distributed to beneficiaries. Death can result in large liabilities for the family, necessitating generational transfer strategies that can reduce, eliminate, or postpone tax payments. During the estate-planning process, there are significant steps that individuals and married couples can take to reduce the impact of these taxes.
Married couples, for example, can set up an AB trust that divides into two after the death of the first spouse.
A grandfather may encourage his grandchildren to seek college or advanced degrees and thus transfer assets to an entity, such as a 529 plan, for the purpose of current or future education funding. That may be a much more tax-efficient move than having those assets transferred after death to fund college when the beneficiaries are of college age. The latter may trigger multiple tax events that can severely limit the amount of funding available to the kids.
Another strategy an estate planner can take to minimize the estate’s tax liability after death is by giving to charitable organizations while alive. The gifts reduce the financial size of the estate since they are excluded from the taxable estate, thus lowering the estate tax bill. As a result, the individual has a lower effective cost of giving, which provides additional incentive to make those gifts. And of course, an individual may wish to make charitable contributions to a variety of causes. Estate planners can work with the donor in order to reduce taxable income as a result of those contributions, or formulate strategies that maximize the effect of those donations.
This is another strategy that can be used to limit death taxes. It involves an individual locking in the current value, and thus tax liability, of their property, while attributing the value of future growth of that capital property to another person. Any increase that occurs in the value of the assets in the future is transferred to the benefit of another person, such as a spouse, child, or grandchild. This method involves freezing the value of an asset at its value on the date of transfer. Accordingly, the amount of potential capital gain at death is also frozen, allowing the estate planner to estimate their potential tax liability upon death and better plan for the payment of income taxes.
Life insurance serves as a source to pay death taxes and expenses, fund business buy-sell agreements, and fund retirement plans. If sufficient insurance proceeds are available and the policies are properly structured, any income tax on the deemed dispositions of assets following the death of an individual can be paid without resorting to the sale of assets. Proceeds from life insurance that are received by the beneficiaries upon the death of the insured are generally income tax-free.
Estate planning is an ongoing process and should be started as soon as an individual has any measurable asset base. As life progresses and goals shift, the estate plan should shift in line with new goals. Lack of adequate estate planning can cause undue financial burdens to loved ones (estate taxes can run as high as 40%), so at the very least a will should be set up—even if the taxable estate is not large
Estate Planning attorneys are licensed legal professionals who have a clear and thorough understanding of federal and individual state laws surrounding everything having to do with an estate. Also known as probate attorneys or estate law attorneys, they can ensure that you have everything covered when it comes to how your estate will be valued, inventoried, distributed and taxed after your death. Estate Planning attorneys also help clients understand the dreaded probate process, and they can advise on tax-beneficial plans that pay both now, and in the future. If you’re wondering how to set up your estate the most effective, protective, solid way possible, finding an estate planning attorney may be a wise choice.
Estate Planning attorneys do more than just help you write your estate plan. They can also be retained to help navigate Power of Attorney (POA) situations, and they often advise on the best ways to set up estate plans to make things as easy as possible on loved ones dealing with a decedent’s (someone who’s passed away) estate. Wondering what types of tasks an Estate Planning attorney may be helpful for? They can help you with:
Now that you understand what, exactly, an Estate Planning attorney is, you may be wondering how to find an Estate Planning attorney who’s right for you, your situation and your estate. You can find the perfect attorney for all your needs by following five simple steps.
Before you even begin trying to find an Estate Planning attorney, it’s important that you understand your needs. First, simply make a list of your specific goals for your estate plan. Knowing what your endgame is means it’ll be easier to find someone who can help. Do you need?
When it comes to finding an Estate Planning attorney, recommendations can be worth their weight in gold. A trusted attorney can give you peace of mind. You may feel better if you know that another family member or close friend who shares your values and goals in life has already used someone who gets what’s important to you. Use your network to help you create a shortlist of attorneys who may be a good fit. Family, coworkers, friends, neighbors – anyone in your life who’s responsible, proactive and you trust can be a valuable source of information when it comes to a referral.
With the age of the internet, you may be tempted to just do a quick search and use the first attorney you find, regardless of where he or she may be located. And while for some services, this is a fine approach, when it comes to estate law, finding an attorney who’s licensed in your state and well-versed in individual state law where you live is crucial.
Laws surrounding Estate Planning will vary from state to state, so it’s really important that you can trust your lawyer is up-to-date with state-specific legal implications of estate law where you live. This is the best way to ensure that everything is addressed in your plan so you (and your loved ones in the future) can avoid legal headaches and hassles.
Like most important things in life, rarely will you hire with the first name you find – at least not without doing your due diligence and really getting to know someone. The best way to ensure you select the right attorney is to just interview the people on your list. The interview process needn’t be lengthy, nor complicated. A quick list of questions should help determine if you’ll feel comfortable with an attorney and be able to trust him or her to advise you in the best possible way.
Potential interview questions to ask Estate Planning attorney candidates:
Finally, it’s important to note that you don’t actually have to go the traditional route of using an Estate Planning attorney. Today, you can choose to use a valid, trusted online Estate Planning service that allows you to create a comprehensive plan that covers all your Estate Planning needs. You really can create an excellent estate plan online and with the peace of mind that you have a plan in place that protects you and your legacy.
Creating your estate plan is one of the most important things you’ll do in life. Finding the right Estate Planning attorney in Utah and in which Ascent Law Firm can help you do it. Your estate plan protects you. It helps ensure that your loved ones will have the comfort of knowing you cared enough to prepare for their future.
We believe your legacy is important – that’s why we offer Estate Planning attorney services for those who want that little bit of extra assurance. There’s no better feeling than knowing you’ve done everything you can to create the perfect estate plan.
Estate planning is the preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.
Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated.
Assets that could make up an individual’s estate include houses, cars, stocks, artwork, life insurance, pensions, and debt. Individuals have various reasons for planning an estate, such as preserving family wealth, providing for a surviving spouse and children, funding children’s or grandchildren’s education, or leaving their legacy behind to a charitable cause.
The most basic step in estate planning involves writing a will. Other major estate planning tasks include the following:
• Limiting estate taxes by setting up trust accounts in the names of beneficiaries
• Establishing a guardian for living dependents
• Naming an executor of the estate to oversee the terms of the will
• Creating or updating beneficiaries on plans such as life insurance, IRAs, and 401(k)s
• Setting up funeral arrangements
• Establishing annual gifting to qualified charitable and non-profit organizations to reduce the taxable estate
• Setting up a durable power of attorney (POA) to direct other assets and investments
A will is a legal document created to provide instructions on how an individual’s property and custody of minor children, if any, should be handled after death. The individual expresses their wishes through the document and names a trustee or executor that they trust to fulfill their stated intentions. The will also indicates whether a trust should be created after death. Depending on the estate owner’s intentions, a trust can go into effect during their lifetime (living trust) or after their death (testamentary trust).
The authenticity of a will is determined through a legal process known as probate. Probate is the first step taken in administering the estate of a deceased person and distributing assets to the beneficiaries. When an individual dies, the custodian of the will must take the will to the probate court or to the executor named in the will within 30 days of the death of the testator.
The probate process is a court-supervised procedure in which the authenticity of the will left behind is proved to be valid and accepted as the true last testament of the deceased. The court officially appoints the executor named in the will, which, in turn, gives the executor the legal power to act on behalf of the deceased.
The legal personal representative or executor approved by the court is responsible for locating and overseeing all the assets of the deceased. The executor has to estimate the value of the estate by using either the date of death value or the alternative valuation date, as provided in the Internal Revenue Code (IRC). A list of assets that need to be assessed during probate includes retirement accounts, bank accounts, stocks and bonds, real estate property, jewelry, and any other items of value. Most assets that are subject to probate administration come under the supervision of the probate court in the place where the decedent lived at death.
The exception is real estate, which must be probated in the county in which it is located.
The executor also has to pay off any taxes and debt owed by the deceased from the estate. Creditors usually have a limited amount of time from the date they were notified of the testator’s death to make claims against the estate for money owed to them. Claims that are rejected by the executor can be taken to court where a probate judge will have the final say as to whether or not the claim is valid. The executor is also responsible for filing the final personal income tax returns on behalf of the deceased. After the inventory of the estate has been taken, the value of assets calculated, and taxes and debt paid off, the executor will then seek authorization from the court to distribute whatever is left of the estate to the beneficiaries.
Federal and state taxes applied to an estate can considerably reduce its value before assets are distributed to beneficiaries. Death can result in large liabilities for the family, necessitating generational transfer strategies that can reduce, eliminate, or postpone tax payments. During the estate-planning process, there are significant steps that individuals and married couples can take to reduce the impact of these taxes.
Married couples, for example, can set up an AB trust that divides into two after the death of the first spouse.
A grandfather may encourage his grandchildren to seek college or advanced degrees and thus transfer assets to an entity, such as a 529 plan, for the purpose of current or future education funding. That may be a much more tax-efficient move than having those assets transferred after death to fund college when the beneficiaries are of college age. The latter may trigger multiple tax events that can severely limit the amount of funding available to the kids.
Another strategy an estate planner can take to minimize the estate’s tax liability after death is by giving to charitable organizations while alive. The gifts reduce the financial size of the estate since they are excluded from the taxable estate, thus lowering the estate tax bill. As a result, the individual has a lower effective cost of giving, which provides additional incentive to make those gifts. And of course, an individual may wish to make charitable contributions to a variety of causes. Estate planners can work with the donor in order to reduce taxable income as a result of those contributions, or formulate strategies that maximize the effect of those donations.
This is another strategy that can be used to limit death taxes. It involves an individual locking in the current value, and thus tax liability, of their property, while attributing the value of future growth of that capital property to another person. Any increase that occurs in the value of the assets in the future is transferred to the benefit of another person, such as a spouse, child, or grandchild. This method involves freezing the value of an asset at its value on the date of transfer. Accordingly, the amount of potential capital gain at death is also frozen, allowing the estate planner to estimate their potential tax liability upon death and better plan for the payment of income taxes.
Life insurance serves as a source to pay death taxes and expenses, fund business buy-sell agreements, and fund retirement plans. If sufficient insurance proceeds are available and the policies are properly structured, any income tax on the deemed dispositions of assets following the death of an individual can be paid without resorting to the sale of assets. Proceeds from life insurance that are received by the beneficiaries upon the death of the insured are generally income tax-free.
Estate planning is an ongoing process and should be started as soon as an individual has any measurable asset base. As life progresses and goals shift, the estate plan should shift in line with new goals. Lack of adequate estate planning can cause undue financial burdens to loved ones (estate taxes can run as high as 40%), so at the very least a will should be set up—even if the taxable estate is not large
Estate Planning attorneys are licensed legal professionals who have a clear and thorough understanding of federal and individual state laws surrounding everything having to do with an estate. Also known as probate attorneys or estate law attorneys, they can ensure that you have everything covered when it comes to how your estate will be valued, inventoried, distributed and taxed after your death. Estate Planning attorneys also help clients understand the dreaded probate process, and they can advise on tax-beneficial plans that pay both now, and in the future. If you’re wondering how to set up your estate the most effective, protective, solid way possible, finding an estate planning attorney may be a wise choice.
Estate Planning attorneys do more than just help you write your estate plan. They can also be retained to help navigate Power of Attorney (POA) situations, and they often advise on the best ways to set up estate plans to make things as easy as possible on loved ones dealing with a decedent’s (someone who’s passed away) estate. Wondering what types of tasks an Estate Planning attorney may be helpful for? They can help you with:
• Writing Wills
• Setting up Trusts
• Protecting assets and estates from creditors
• Setting up guardianship
• Advising on tax-beneficial plans
• Helping designate beneficiaries
• Creating plans that will reduce the complexity of (or avoid altogether) probate
• Establishing Durable Power of Attorney
• Establishing Medical Power of Attorney
Now that you understand what, exactly, an Estate Planning attorney is, you may be wondering how to find an Estate Planning attorney who’s right for you, your situation and your estate. You can find the perfect attorney for all your needs by following five simple steps.
1. Make a list of your specific needs
Before you even begin trying to find an Estate Planning attorney, it’s important that you understand your needs. First, simply make a list of your specific goals for your estate plan. Knowing what your endgame is means it’ll be easier to find someone who can help. Do you need?
• To write your entire plan from scratch?
• To revise or update an existing plan?
• To complete a specific aspect of your plan, such as designate beneficiaries or set up guardianship?
• Help or advice on how to reduce or eliminate future tax liabilities for your estate and/or beneficiaries?
• To set up and fund a Trust?
• Anything else?
2. Ask friends and family
When it comes to finding an Estate Planning attorney, recommendations can be worth their weight in gold. A trusted attorney can give you peace of mind. You may feel better if you know that another family member or close friend who shares your values and goals in life has already used someone who gets what’s important to you. Use your network to help you create a shortlist of attorneys who may be a good fit. Family, coworkers, friends, neighbors – anyone in your life who’s responsible, proactive and you trust can be a valuable source of information when it comes to a referral.
3. Search locally
With the age of the internet, you may be tempted to just do a quick search and use the first attorney you find, regardless of where he or she may be located. And while for some services, this is a fine approach, when it comes to estate law, finding an attorney who’s licensed in your state and well-versed in individual state law where you live is crucial.
Laws surrounding Estate Planning will vary from state to state, so it’s really important that you can trust your lawyer is up-to-date with state-specific legal implications of estate law where you live. This is the best way to ensure that everything is addressed in your plan so you (and your loved ones in the future) can avoid legal headaches and hassles.
4. Take time to interview your prospects
Like most important things in life, rarely will you hire with the first name you find – at least not without doing your due diligence and really getting to know someone. The best way to ensure you select the right attorney is to just interview the people on your list. The interview process needn’t be lengthy, nor complicated. A quick list of questions should help determine if you’ll feel comfortable with an attorney and be able to trust him or her to advise you in the best possible way.
Potential interview questions to ask Estate Planning attorney candidates:
• Where did you get your law degree?
• How long have you been in practice?
• How should we communicate?
• How can I get in touch with you?
• Who will be my point of contact at your office?
• How will I receive updates regarding my plan? Should I take the initiative, or will you (or someone at your office) provide me with regular feedback?
• What are your fees and rates? Do you charge a flat fee or hourly?
• Are there any additional charges I should expect that are outside your rate?
• What, if any, certifications do you hold?
5. Use online Estate Planning services instead
Finally, it’s important to note that you don’t actually have to go the traditional route of using an Estate Planning attorney. Today, you can choose to use a valid, trusted online Estate Planning service that allows you to create a comprehensive plan that covers all your Estate Planning needs. You really can create an excellent estate plan online and with the peace of mind that you have a plan in place that protects you and your legacy.
Find the Right Estate Planning Attorney for You
Creating your estate plan is one of the most important things you’ll do in life. Finding the right Estate Planning attorney in Utah and in which Ascent Law Firm can help you do it. Your estate plan protects you. It helps ensure that your loved ones will have the comfort of knowing you cared enough to prepare for their future.
We believe your legacy is important – that’s why we offer Estate Planning attorney services for those who want that little bit of extra assurance. There’s no better feeling than knowing you’ve done everything you can to create the perfect estate plan.
