Your Financial Advisor and Estate Planner Come as a Package ...

Estate planning is not just for our retired population.? It is much easier to avoid thinking about the day that you will cease to breathe or the day that you may become disabled.? Estate planning should not be put on the back burner; though, it is necessary to forgo any unpleasant state involvement with your assets.? You may want your wife to have half, but the state will decide only a quarter of your assets should go to your wife.? The way your estate is handled should be your decision and, so, it is extremely beneficial to get your trust in order.?? Although your financial advisor is not an attorney, she can team up with your legal and tax advisors to assist you with a well-thought out plan.? Here are some thoughts to keep in mind:

Being Tactical

An estate plan needs to be tactical and needs to fully benefit you. Be aware of all types of costs such as death tax and probate costs.? Also be aware of how your assets are titled There may also be some the out-of-state laws that may affect some of your assets that are not local.? States may vary on how they perceive trusts.

Estate or Death Tax

This is a tax on anything that is transferred to beneficiaries? hands.? It could be a tax on the deceased? property or the deceased? accounts. Next year the estate tax percentage will be set to rise back to where it was before the Bush Era at the 2001/2002 levels.? The top rate now is 35% and those with holdings of a little more than $10 million or less are exempted, but when it is reverted to Pre Bush Era levels it will be increased to 55% on household holdings of $3 million dollars or more.

Options to Avoid Estate Tax

The unlimited marital deduction will allow you to pass your assets to your spouse at any time (even at death) without any tax liabilities, but it will only defer the liability and not eliminate it.? A credit shelter trust will allow you to pass on your invested assets to your heirs (typically your children) with spousal rights and no estate tax liability.? The spouse will maintain rights to the trust and any accrued income till she has passed.

Probate Costs

When your transfer of assets is administered it may come with a fee and this is the probate cost.? The average probate cost is 6% of the gross estate.? Usually this cost is accrued when assets are not properly titled to the Trust.? Speak to your advisor and attorney and ensure that everything is properly titled.

For helpful tips to improve your retirement and your estate preparedness, (to ensure your assets will transfer with the least amount of complications) please visit our website:? www.fiohinvestments.com

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Source: http://www.fiohinvestments.com/your-financial-advisor-and-estate-planner-come-as-a-package/

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