This article is the final installment in a three-part series on estate planning. In part one, we touched on the basics of estate planning – why we all need to put an estate plan in place. We also discussed the attributes of the will and the trust, the two most foundational documents in an estate plan. In part two, we walked through the history of estate and gift taxes from antiquity to present day. Taxes due at death were often used to raise revenue to pay down debt from one-time expenses like wars, but over time they became more ingrained in the tax code. Simply put, governments recognized the inevitable death of each of its citizens as a regular and predictable opportunity to tax the transfer of property from the decedent to his or her beneficiaries.
ESTATE PLANNING—Part 1
After almost twenty years in the financial services industry, I can tell you firsthand as an attorney that estate planning is the most overlooked, misunderstood and procrastinated piece of the financial plan for most families. I can also tell you from experience why that’s usually the case: most people think putting together an estate plan is a lot more complex, costly and time-consuming than it almost always turns out to be. In fact, with just a little focus of time and resources, a family can save itself thousands of dollars and countless hours of time wasted in picking up the pieces after the death of a loved one because a viable estate plan was never put in place.
This article is part one in a short series on the aspects of estate planning. Today, we’ll touch on the very basics and will feature two important documents – the will and the trust. In a few follow-up articles, we’ll take a deeper dive into issues regarding taxes, gifting, beneficiaries, and we’ll look at which ancillary documents, in addition to wills and trusts, round out the “basic set” of estate planning documents for most families.
