Estate Planning And Trusts

If your spouse is your primary beneficiary, pay close attention to any secondary designations. If your spouse predeceases you and no secondary beneficiary is named, the institution might be forced to cash out accounts and add them to your estate - which could trigger a costly combination of estate and income taxes.

Things change,- and so should your estate planning and trusts. Keeping beneficiary designations current can also help simplify life for surviving family members.

For example, if you name your first two children as contingent beneficiaries but forget to add a third child from a later marriage, it may create complications later.

If you would like information or guidance about your situation, just call us to discuss it. There is no cost or obligation for this initial consultation.

Retirement accounts could grow to become one of your largest assets, so you might want to add a "beneficiary review" to your list of things to remember.

Remember when updating your Estate Planning and Trusts - Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to age 59 ½, may be subject to an additional 10 percent federal tax penalty.

Estate Planning Self Examination

It is not simply enough to have money saved. It is very important to have your estate well planned for unforeseen circumstances or in preparation of death.

By having your affairs in order, you can help to guarantee that your assets will be properly taken care of and distributed in the manner of your choosing should you pass away or become incapable of making the appropriate decisions.

Here is a self exam to help you determine if you are "Fiscally Fit."

1. Have you done anything to plan your estate?

2. What is the date of your Will or Trust? Have the documents been reviewed in the past three years? Are they still valid?

3. Have you and your spouse planned your estates to double your tax-free transfers and, if so, are your properties titled correctly to carry out the plan? Does your trust allow you to avoid probate?

4. Are you giving away the right type of asset?

5. Have you and your spouse both used each of your available $5,000,000 generation skipping exemptions? (This amount might change at the end of 2012).

6. Are you taking advantage of the $13,000 annual transfer exclusion?

7. Have you set up a trust that will qualify for the present interest exclusion?

8. Is your Executor or Trustee the right choice today? May they be changed after your death?

9. Do you have a durable power of attorney and if so, may the attorney-in-fact make gifts of your property?

10. If your spouse is not a U.S. citizen, have you established a Qualified Domestic Trust?

11. Does your will name a guardian or custodian for minor children, or an adult spouse or child with a special need?

13. Did you know that federal estate taxes have a flat 45% rate with an estate more than a certain amount? The amount changes from time to time, so speak to a financial planner about minimizing this tax when the time comes.

14. When did you last review the beneficiary designations on your IRA? Have you reached age 70½? Have you properly funded your trust with IRA benefits?

If you cannot accurately and confidently answer any of these questions, then you owe it to yourself and your family to become "Fiscally Fit."

A qualified New York estate planning attorney can help you to get your affairs in order and help to ensure your control of your assets. Call or fill out our online form to schedule a consultation with Charles R. Gueli.

I hope this has been helpful, but if you have a question about Estate Planning and Trusts, click here.

Find more about Trust Law here.

And get your Estate Planning Checklist here.

And here's a page about Estate Tax Laws.

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