Estate Planning
When people hear the term "Estate Planning", they usually associate it with their mortality. Therefore, it is generally an uncomfortable subject to talk about let alone do the necessary planning.
The goal of Estate Planning is to give your assets to who you want, the way you want and when you want, while also saving every tax dollar, attorney fee and court cost possible. An Estate is everything you own - residence(s), car(s), personal property, boat(s), cash, bank accounts, stocks, business, pension plan(s), IRAs, CDs, life insurance policies, etc.
Surprisingly, a Will is not an effective Estate Plan. A Will, by law, must proceed through Probate Court which costs approximately 3% - 10% of the gross value of the estate. If you think about it, you probably have more assets than you realize. For example, if your home is worth $150,000, you have $100,000 for your retirement (pension plan and savings) and personal property valued at $25,000 (which is a low figure considering most families have 2 cars today), your gross estate would be valued at $275,000. Based on the probate cost of only 3%, this would be $8500 and 10% would be $27,500. Why would anyone not want to give this money to their heirs?
There are a couple of ways to avoid probate. One is an annuity or Life Insurance. The other is a living trust. A good estate plan can save you tens of thousands of dollars that you can pass onto your family. If you would like more info visit www.annuitynews.net or email me at dustin@capitalcareamerica.com
Dustin J Weaver ACS PCS AAPA