admin

Think of your “estate” as a box that holds all of your assets. They may be tangible like a car or real estate or intangible like shares of stock.

Estate Planning is the process of planning for the accumulation, conservation, and distribution of your estate. It’s important to all of us – whether single, married, older, younger – wealthy or not.

At a minimum, you should plan for your disability and for death. Disability and death planning are generally considered to be the “core” areas of every estate plan. They are important to all individuals.

Every estate plan is either planned by you or dictated by state and/or federal laws. As the person who creates your estate, you should determine how it is planned rather than leaving the planning to others – who don’t know you and likely, do not care.

The legal documents that address the core areas of your plan typically include:

Disability Planning

• Durable Power of Attorney
• Living Will
• Medical Power of Attorney

Death Planning

• Last Will and Testament

The general idea in disability planning is to create a plan that allows for continuity of decision making with respect to both financial and medical matters. In other words, if you are not capable of making financial and medical decisions for yourself, then who will you appoint to make those decisions for you?

A Durable Power of Attorney and Medical Power of Attorney are important to accomplish these objectives. Each document will enable you, in advance and in writing, to choose the people who you trust to manage your affairs and make financial and medical decisions on your behalf – without court intervention or supervision.

Through a Living Will, you will have the opportunity to provide instructions about medical procedures that you desire to be administered if a doctor either determines you to be in a state of permanent unconsciousness, or determines that your death is imminent.

It is certainly more desirable that you provide instructions rather than leave those difficult decisions to your loved ones. Without your prior instructions, the decision maker may struggle with whether she/he made the right decision.

Planning for the distribution of your assets at death can be complex; however, it doesn’t have to be. Keep in mind that your estate includes your accumulated assets.

A Last Will and Testament will enable you to specify:

• Who your heirs are
• How your estate is to be divided
• When each heir will receive her or his share

Your assets are yours and you should decide who gets what and when.

Of course, not all of your assets are subject to the terms of your Last Will. Certain assets may be transferred outside of the terms of your Last Will. Proper planning will enable you to transfer the assets passing both under your Last Will and outside of your Last Will, in the manner you determine to be appropriate.

Why leave those decisions to a judge or state and/or federal laws?

Beyond the core planning areas, each estate plan will vary in coverage and complexity according to the individual’s needs and objectives. More complex plans will usually involve the need to develop effective and efficient strategies to accomplish specific tax and non-tax objectives.

Examples of planning beyond the core areas might include:

• Impact of death and income taxes
• Planning for children with special needs or minor children
• Use of trusts
• Business succession planning
• Charitable giving strategies
• Second marriages

These issues should be considered and planned for together with your attorney to ensure that you meet your objectives.

However big your box or whatever it contains, it’s important that you decide how it should be organized, managed and delivered. Don’t you think?

Now is the time to plan. Leave your heirs a gift they will appreciate and cherish – on your own terms.

By: Anthony J. Rocca, Esq.
— Law Offices of Anthony J. Rocca, P.C.

###

Anthony J. Rocca is a business attorney and estate planning professional and thought leader who practices in PA & NJ. He lectures extensively in the areas of protection of assets, preservation of wealth, business succession and estate planning and other tax matters.  He has authored and presented hundreds of continuing education seminars since 1995 for the members of more than 24 State Accounting Societies as well as other financial and insurance advisory organizations throughout the US.