Everyone has an Estate, whether you have a little or a lot.  Most people accumulate things as they go through life – money, possessions, stuff.

My goal is to show you the “Big Picture” of Estate Planning and introduce you to a few of the tools and techniques which may work for you.

The overall purpose of Estate Planning is to make sure that the things that are important to you go to the People that are important to you.

There is always the possibility that Congress could change this in the future but for right now unless your Estate exceeds $13.6 million for an individual or $27.2 million for a married couple there is no Estate Tax.

Let's take a brief look at what happens at your death regarding your Estate. 

Typical expenses include:

1. Last illness and burial costs.
2. Payment of any outstanding debts to creditors.
3. Attorney's Fees. 
4. Executor's Fees or Commissions.
5. Accountant's Fees.
6. Income Taxes - both State and Federal.

 Plus possible commissions on the sale of estate assets, court costs, and litigation costs.

Some of the problems which we have listed can be solved by proper Estate Planning.  Let's look at some of the reasons why you should have a Will.  A Will is a written legal document that expresses your wishes for the distribution of your assets. It must be executed in compliance with laws of the state where the deceased resided at the time of death.

1. A will avoids distribution under the law of intestacy.  Florida Intestacy Law will pass property to certain relatives of the decedent.  These laws have been drafted to be "fair" in the average situation, but most of us would like to choose who will receive our estate when we die.

2. A will permits the nomination of a guardian for minor children. Without a nomination in a Will, the Court will appoint a guardian for minor children.  Relatives may not be the best choice for a guardian and consideration must be given to the financial situation of the potential guardian, as well as their health, age, and ability to love our children.

3. In the absence of a Will, the court will require a fiduciary bond to be posted by the Personal Representative of your estate to guarantee the replacement of any funds embezzled or diverted by him or her.  Since this additional cost must be borne by your estate, you may decide to waive the bond requirement in your Will.

4. The duties of the Personal Representative of an estate can be very time consuming and frustrating, especially to a spouse who has just lost his or her companion.  With a Will, a qualified individual or a corporate trust company can be chosen to handle this procedure.

5. An individual may bequeath specific items of jewelry, heirlooms, furniture, or make cash bequests, and be certain that they will pass to the proper persons.  Without a Will, written or verbal instructions may not be followed. 

6. Additional expense to the estate can often be avoided by permitting the sale of assets without the executor having to publish a notice of sale in the newspaper.  A sale of assets may be necessary in order to pay death taxes and expenses of probate.

7. Unless the Will authorizes the continuation of a business, your executor must operate it at his or her own risk.  Many executors may elect not to administer the estate unless this risk is borne by the estate.

8. When parents die leaving minor children, each child's share  of the estate must be held in a guardianship account until  he or she attains the age of 18, at which time the entire  remaining share is distributed outright.  Trust provisions can be placed in the Will to defer these distributions until a more mature age.

9. Although this advantage cannot be measured in dollars and cents, when the estate is in order an emotional load is lifted from the person who is concerned for his or her family's well-being.

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Estate planning is about planning today for a future event.  The American Bar Association and most state Bar Associations recommend that every Estate Plan contain a minimum of 4 essential documents:

A Last Will & Testament, or a Revocable Living Trust; (which we have already talked about)

A Living Will;

A Designation of Healthcare Surrogate, and 

A Durable Power of Attorney.

We will explore each of these last 3 documents.

What is a Living Will?

A Living Will is your written instruction regarding end of life procedures once you are no longer able to communicate to express your wishes. At what point do you want the doctors to stop procedures that are experimental or artificially prolong life?  A Living Will names an Agent, other than yourself, that has authority to advise the doctor regarding your wishes.

A Designation of Health Care Surrogate is a written document designating an individual to make medical decisions for you if you are unconscious or incapacitated, but not terminal.  As long as you are able to communicate with the Doctor your instructions will take precedent. 

A Durable Power of Attorney is a Written Document naming an Agent to act on your behalf regarding business and legal matters.  A Power of Attorney can be limited in its authorization or it can be very broad.  The Durable Power of Attorney that is used for Estate Planning purposes is very broad in nature and therefore the named Agent should be someone that you trust completely.  You are giving that Agent the power to act as though they are you.

So what is next?  I recommend an individual meeting with you where we can go over your own particular objectives and determine which estate planning tools will work best for you.