Estate Planning

Estate Planning ... It is not just for the rich anymore. We all enjoy being in the driver's seat and control of our destiny. Well, suppose we want to control what happens to our personal things about our death? The answer of course is that we need to create an estate plan. With a well constructed plan, you can spell out all the details at:

1) will,
2) durable power of attorney,
3) a living will,
4) health care proxy and perhaps
5) the trust.

On the map, you can choose a guardian for your minor children. On the map, you can reduce the amount of taxes that are due upon your death. With the plan, which can prevent your estate from going through a long process and the associated conditional headaches and expenses for their loved ones. Without a plan (for example, will), the government gets to call shots. The state dictates that among his successors it gets! If you want to make sure that the needs of your family and take care that their financial freedom goals are implemented in accordance with your wishes, and then the estate plan is just the ticket for you.

By now you're probably wondering how all this is going to cost? Surprisingly, the full package is very manageable. The basic package includes a will, living will, durable power of attorney and healthcare proxy typically costs between $ 1,000.00 to $ 1,500.00. If you add confidence in the equation, then you should plan on spending between $ 2,000.00 and $ 3,000.00.

At the level of federal taxes, tax credits, unemployment insurance approval again, and job creation Act of 2010 has allowed for some major changes taking place affect a person's estate. These changes will expire on 12-31-2012 and include:

$ 5,120,000.00 gift and estate tax exemption
35% tax rate on top
transferability of assets between spouses
If no further law was passed, on 01/01/2013, we will see the above fees to return to:

$ 1,000,000.00 gift and estate tax exemption
55% tax rate on top
loss of portability features
At the level of state tax is currently 18 states that collect property taxes and there are 7 states which impose inheritance tax recipients. Finally, there are two states which impose both estate taxes and inheritance taxes (NJ et al.)

1) Last Will and Testament: This is the first part of well-constructed estate plan. This allows you to announce to the world exactly what you want to give and to whom. If you die without a will, which is called probate, the state is kind enough to make these decisions for you. Unfortunately, there is a very good chance that the State election will be in accordance with your wishes. Usually the state will divide its property between the surviving spouse and their children. Since not too many people actually plan when to die, that you would be required to create the will to win and the state to drill.

Reasonable people will review your will every so often and update it to incorporate any changes. It is also a good time to review all users and make changes to the custody of their children if necessary. Believe it or not, about two-thirds of all Americans have no will. Do not become one of them.

2) Durable Power of Attorney: Very simply, it is very short instrument that specifies who can make financial decisions for you. This becomes particularly important should you become mentally or physically incapacitated. Obviously, you have to trust him or her implicitly. This person is your "attorney in fact." As such a person has a fiduciary duty to you, chief.

3) Health Care Proxy is a tool that allows a person to designate another person to medical decisions on their behalf should they become incompetent and unable to make their own decisions. Determine the best qualified should be able to make difficult decisions in stressful situations, while keeping your best interests in mind.

4) Living Will is an instrument that outlines your wishes about using life support equipment, if needed. If you become unable to communicate, this instrument also known as an Advance Medical Directive, or the Social Services stated its interest in the use and extends the life of doctors and equipment to sustain life.

So you can see by now how important it is to have all the pieces of the puzzle estate planning in order. Financial Freedom with their loved ones in question so that you will want to be sure and have the puzzle together correctly.

Chris Borg's practicing pharmacists and financial consultant who writes about health care and investment.