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why
plan, why now?
One of the most important reasons to have an estate plan
is that it is a good
investment. Money magazine says it’s one
of the fifty smartest things you can
do with your money
(July,
2005, page 90). If you make the effort to wisely invest
and build your estate,
it is consistent to preserve it for your
heirs. You can preserve more of your
estate by having a plan
that keeps your heirs out of probate court.
Probate fees, both executor and attorney fees, are calculated
as a percentage of the value of your estate. If your assets are
held in trust, they are not part of your probate estate. Thus,
you can avoid substantial court costs and fees by holding your
assets in trust.
If the assets in your estate are worth more than $100,000, you’ll generally need
a trust to avoid probate. In addition, if you own
real estate in California, you will probably need a trust. Often,
if no trust is in place, a probate will be necessary to transfer
title to real property.
Why leave it to a court to distribute your assets to your heirs?
With a comprehensive estate plan, you will be directing what
is to be done, and no court will have to oversee anything.
With a plan
in place, you’ll have the peace of mind that comes
with knowing
your heirs have clear instructions for disposition of your property
and that your
property can be distributed without a lot
of red tape
and expense. Your plan
will also set forth your wishes
for health
care decisions, and will designate
individuals who can
make
financial decisions for you, should you be unable make
those
decisions for yourself. If you have children, you can designate a guardian
in your estate planning documents.
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why pay an attorney?
So, you need an estate plan, but you’ve
heard it’s expensive. Since estate plans
vary, so does the cost. A brief examination
of each individual/family situation is
necessary in order to determine the estate
plan fee. In general, though, estate plans
can cost between $500, for a simple will,
and $3,500 for a more complex family trust.
In addition, as part of the “plan” an
attorney can counsel you on how to hold
your assets, as well as assist in transferring
assets into a family trust, or other form
of title. An attorney can also be a continuing
resource for any changes warranted in the
plan by change of circumstances, or the
law. An attorney can analyze your portfolio to determine whether or not you need estate tax planning. Estates worth more than $3.5 million are taxed at a rate of 45%; in 2010, estate tax is repealed; and in 2011 estates of more than $1 million will be taxed at a rate of 55%! LegalZoom cannot give you legal or tax advice, or explain the complex documents that are necessary to avoid or reduce estate tax.
Legal services firms might offer to prepare
and notarize standard forms at what seems
like a cheaper rate. Often, all you receive
from these firms is the documents; you
may not even meet with an actual attorney,
and you will likely only receive additional
advice on asset protection and transferring
assets at an additional cost.
I will assist you with the funding process...you'll
get help with transferring real property,
designation of beneficiaries, transfer of
brokerage accounts and other services you
may not get from other firms. These services
are included in the price of your estate
plan.
“I had put off getting my trust done for years, and I wasn’t
certain how
to move forward, or if I really needed a trust.
After consulting with Sarah,
I quickly realized I was not managing
my financial assets smartly, and that my
family would suffer from
my lack of action. The trust creation process was easy.
I gave
Sarah the necessary documents and two weeks later everything
was completed.
As a Sales Account Manager, I appreciate the
qualities Sarah brought to the process:
Extremely knowledgeable
on the topic, great communication throughout, very professional,
and immediate
follow-up to questions I had. I would highly recommend
her services."
--Eric K. |
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