| Â What Is Estate Planning? Â Estate planning is the process of accumulating, preserving and distributing assets to achieve the financial goals of people during their lifetimes, and to provide for their heirs according to the estate owner's wishes at death. As such, estate planning is not a one-time event. Instead, it is an ongoing process designed to accomplish accumulation, preservation and distribution objectives, both during your lifetime and after your death. Â Estate Planning Objectives: Â - Accumulation Estate accumulation objectives involve accumulating assets and net worth during your lifetime by systematically channeling money into savings, insurance and investment plans.
 - Preservation Estate preservation objectives include protecting your ability to earn an income during your working years and planning to minimize and offset estate shrinkage at your death.
 - Distribution Estate distribution objectives deal with identifying and implementing the tools and techniques that will distribute estate assets to your heirs in an advantageous manner that is consistent with your wishes.
| |  What Can Be Learned from Public Probate Records?  You may be interested in what the public probate records of the estates of businessmen, attorneys, entertainers, accountants and even a President have to show. Name | Name | Gross Estate | Net Estate | Percent Shrinkage | | Franklin D. Roosevelt | $  1,940,999 | $  1,366,132 | 30% | | Henry J. Kaiser | $  5,597,772 | $  3,109,408 | 44% | | Edwin C. Ernst, CPA | $ 12,642,431 | $  5,518,319 | 56% | | Robert S. Kerr (U.S. Senator, Oklahoma) | $ 20,800,000 | $ 11,300,000 | 46% | | A.H. Wiggin (Chairman, Chase Bank) | $ 20,493,999 | $ 5,646,666 | 72% | | William E. Boeing | $ 22,386,158 | $ 11,796,410 | 47% | | Rick Nelson | $  744,357 | $  506,636 | 32% | | Elvis Presley | $ 10,165,434 | $ 2,790,799 | 73% | | Rock Hudson | $ 8,600.000 | $ 3,926,288 | 54% | | James S. Kemper (Insurance Executive) | $ 10,948,356 | $ 7,007,560 | 36% | | Nelson A. Rockefeller | $ 79,249,475 | $ 56,727,628 | 28% | | Conrad Hilton | $199,070,700 | $ 93,288,483 | 53% | | Source: Public Probate Records |  |  |  | Gross  cnkage If these people, who had access to the best advice money could buy, were not able to avoid the "unwanted heirs" (federal and state estate taxes an estate administrative costs), it will be difficult for the rest of us to avoid estate settlement costs.  Proper advance planning, however, can minimize the impact of estate settlement costs on the value of your estate. | |  How Much Do You Know About Estate Planning? True or False  - The unlimited marital deduction postpones the payment of federal estate taxes.
 - A married couple can give any individual up to $26,000 in gifts tax-free in 2010.
 - Federal estate taxes must be paid in cash, generally within nine months of death.
 - Federal estate tax rates are progressive, meaning that they increase with the size of the estate.
 - Your estate may have to pay state inheritance taxes.
 - If you die without a will, state intestacy laws will determine who inherits your property.
 - The federal estate tax is payable only if your taxable estate exceeds the unified credit equivalent, which was $3,500,000 in 2009.
 - The marital deduction does not apply to property you bequest to someone other than your spouse.
 - Under current law, the federal estate tax is scheduled to be repealed for only one year -2010 -and then reinstated in 2011 under 2001 tax rules.
 - Various estate planning techniques and tools can be used to reduce estate taxes.
  The answer to all of these questions is YES! How did you do? | |  What Is the Estate Planning Impact of the 2001 Tax Act?  The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001) made numerous changes to the three federal taxes on transfers of assets from one person to another -the gift tax, the estate tax and the generation-skipping transfer tax. These changes are phased in from 2001 to 2010.  For estate planning purposes, the complicating factor is that the entire Act will automatically terminate, or "sunset," at the end of 2010 unless a future Congress extends its provisions.  If the Act sunsets, 2001 tax rules will then apply in 2011, as if the EGTRRA 2001 had never become law. | |  The Choice Is Yours... Plan Now...or...Pay Later!  Spending a little time and money NOW in planning your estate can yield substantial benefits...  Ø      You have the opportunity to arrange your estate in such a way as to minimize taxes and estate settlement costs, leaving more of your assets to your family.  Ø      You are able to accomplish your goals and objectives for the disposition of your assets.  Ø      Your family can continue to benefit from your knowledge and experience, even after you are gone.  The alternative is to let others -- the courts, attorneys -- do your estate planning after your death.  The end result of this choice is usually increased costs, delays and frustration for your family. | |
