An Estate Planning Overview

Estate planning can be described as the process of transferring assets, during life as well as at death, to ensure that they are distributed in the manner the estate owner wishes. Although saving taxes is a priority, most important is the estate owner's desire to transfer assets to the people he or she wants, in the proper amount and with the proper timing.

Here are just a few things to keep in mind:

• Too many people die without a valid will, the bedrock of an estate plan, leaving others to guess at what the decedent would have wished.
• While tax reduction is a legitimate and proper consideration, the benefits of estate planning are not limited to those with taxable estates.
• Because planning an estate can be complex, always involve the assistance of an attorney who specializes in this area.
• The planning process should not begin too late. Death often comes unexpectedly, and each of us needs to give thought to how we want to distribute what we own.
• Charitable giving techniques in an estate plan can help achieve personal goals and reduce taxes, as well as advance a favorite cause in the long run.

The Tax Considerations
Any person who dies with an estate of less than the current exempt amount ($2 million in 2006) will be subject to no federal estate tax, assuming no taxable lifetime gifts were made. This amount is scheduled to increase until the estate tax is repealed for one year in 2010. Unless further legislation is passed, estate tax rates and exempt amounts from 2002 will be reinstated on 2011.

Many people are discovering that the values of their estates have been rising over the years, especially if they own publicly traded securities or real estate—assets that have generally appreciated despite the ups and downs of the marketplace. Though the tax laws have become more generous, tax planning should still be a consideration in estate planning for more people during these years of uncertainty.

Two keys to good planning for reduction of taxes in an estate are the marital deduction and the charitable deduction. Though married people tend to have more tax-saving options than single people, if saving taxes is important to you, take advantage of the fact that any bequest to a charitable organization is estate tax–free.

Ask your favorite charitable organizations for Details
We can provide you with information about ways that charitable giving plans can be incorporated into your estate plans to accomplish your overall objectives. You may find some of them more beneficial than you ever dreamed!

Call us for a confidential, no-obligation discussion of your particular situation. Our goal is to make sure that any gift you make to us is also the best one for you and your family.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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