What is Estate Planning? 

The key to an effective estate plan is being diligent in the care and maintenance of all that you have worked for during your lifetime. Your first responsibility in planning your estate is to yourself, your spouse, your children and to ensure that both you and they are provided for.

Estate Planning—Who Needs It? 

Everyone needs an estate plan. Individuals with large estates, spouses, children (particularly special needs children), are especially in need of such planning. While most states have statutes that act like a Will in the event that you die without one, these statutes can be inflexiable, superficial and do not always coincide with the wishes of the deceased.

When and Why Should You Plan Your Estate?

You should plan now.  Through proper estate planning, you can live on, in and through your family after your death. You have the opportunity to leave a legacy to your loved ones. If you desire to name the guardian of your children in your absence (as opposed to having a court determining one for you), avoid or minimize estate taxes, keep your estate in the family, distribute family assets or personal mementos according to your wishes, and retain the ability to make other choices, you must have a plan.  Estate planning is about ensuring that your estate—everything you own and control—is preserved and used for the benefit of those you love.

What Happens If You Become Incapacitated?

If you become incapacitated, you need the required legal documents to allow someone that you trust to make financial and medical decisions for you. A Durable Power of Attorney will allow a designated agent to make financial and legal decisions for you. In addition, an Advance Medical Directive will declare that you do not want to remain on life support if you are in a long-term vegetative state.  The document also allows an agent to make important medical decisions for you if you cannot. 

Does Estate Planning Involve Financial Planning?

Yes.  In order to have an estate worth passing to the next generation, it is important to have sound financial guidance in order to maximize your asset potential during your lifetime. J.S. Burton, uses a holistic approach that utilizes a wide variety of independent advisors that can assist you in every aspect of your financial plan.

Will vs. Revocable Living Trust

Wills and Probate:

Upon your death, your Will must go through a court controlled process called probate.  Probate is defined as the procedure by which an Executor or Administrator proceeds to admit a Will to the jurisdiction of the court. This procedure is designed to determine the "validity" of the will, and if valid, to distribute the deceased's property in accordance with the terms of the will. The term "probate" generally includes all matters relating to the administration of estates. The following are just a few of the drawbacks associated with probate.

Lack Of Privacy:

Documents filed with the Court are public information. They are available for inspection to anyone who asks. In large estates that require an accounting, your probate file will contain a complete list of all assets that are to be distributed by your Will—this includes business assets. This lack of privacy may lead to problems among family members who now know the plan of distribution and may prompt a will contest with respect to provisions they disagree with. Disinherited relatives and creditors are notified and given time by the court to contest the Will.

Time Consuming:

The probate of an estate may take several months to years to complete. During that time, family members may have to apply to the court for an allowance.

Fragmentation—Real Estate:

If you own real property in more than one state, probate rules must be followed in each state where the property is located. The cost and time in settling your estate may be increased.
 
A Revocable Trust:

A Revocable Trust is a legal document that allows you to maintain complete control over your assets while AVOIDING PROBATE. Because there is no probate of a Revocable Trust, your private financial matters remain private; there are no probate costs, no delays and loss of control and no fragmentation of the estate.

You Maintain Complete Control Over Your Property in Trust:

The principle behind a Revocable Trust is simple. When you establish a Revocable Trust, you transfer all your property into the Trust, and then name yourself as trustee, or you can name you and your spouse as co-trustees of the Trust. The trustees maintain COMPLETE CONTROL over the property (the same control you had before your property was placed in trust). You can buy, sell, borrow, pledge, or collateralize the trust property. You can even discontinue the Trust if you desire, hence the term "Revocable" Trust.

Complete Privacy:

Probate records are public. Your Revocable Trust document on the other hand is private. A Revocable Trust will safeguard the privacy of your family and your private financial matters.
 
Naming a Trustee:

Most people name themselves and their spouse as the initial Trustees of their Revocable Trust. This is usually true unless one spouse is incapacitated to the point that he or she is not able to manage your assets in the same way you do now.

Estate Taxes: 

In 2011, estate taxes can take up to 55% of your assets over a certain dollar amount. This dollar amount includes everything that you own, including life insurance, retirement accounts and real estate. A proper estate review by J.S. Burton, P.L.C. could save your estate thousands of dollars in estate taxes.