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FIN 230 Chapter 15 (15-1 Principles of Estate Planning (5-1 (Issues that…

- - - - Giving away your crap while avoiding taxes
      - Don't do it: federal and state take over assets upon death and distribute them as they please with costs and taxes going to the person they choose
    - - Excessive transfer costs
      - Lack of liquidity
      - Improper distribution of assets
      - Inadequate income at retirement
      - Inadequate income, if disabled
      - Inadequate income for family at estate owner's death
      - Insufficient capital
      - Special problems
        
        Someone with a serious illness or physical or emotional problem, children of a prior marriage, those who have medical or financial needs, those who will argue about estate matters, business problems, or opportunities
    - - Gift tax
      - Estate tax
      - Income taxes
        
        (due to beneficiaries cause of the property given)
  - - - People Planning
        
        Minor children
        
        Disabilities
        
        Otherwise Needy Financially
        
        Lots of money is a burden
      - Asset Planning
        
        Is estate less than $11,180,000?
        
        No transfer taxes either by gift or estate
        
        Is estate belonging to married couple?
        
        $22,360,000
    - - Go to the publication published by the National Institutes of Health (NIH), look at Smart Sites
  - - - Issues
        
        Death-related costs
        
        First level
        
        Second level
        
        Inflation
        
        Lack of Liquidity
        
        Improper use of vehicles
        
        Disabilities
  - - - Both probate and nonprobate that might be subject to tax
      - What you OWN at the time of your death
  - - - Assess your family situation and set estate planning goals
      - Gather comprehensive and accurate data
      - List all assets and determine the ownership and value of your estate
      - Designate beneficiaries of your estate’s assets
      - Estimate estate transfer costs
      - Formulate and implement your plan
      - Review the plan periodically and revise it as necessary (at least every five years)
- - - - Parents, brothers, sisters secondary