Chester Clem's estate planning practice serves clients with both simple and complex estate planning and administration needs. Individuals and families are counseled in the acquisition, preservation, management and transfer of their assets. Services combine the areas of income taxes, estate and gift taxes, charitable giving, corporate and partnership law, and real estate law. Services are rendered assuring that each client's individual goals and objectives are met.
ESTATE PLANNING BASICS
No matter your net worth, it's important to have a basic estate plan in place. Such a plan ensures that your family and financial goals are met after you die.
An estate plan has several elements:
Elements include: a will; durable power of attorney; a living will and a healthcare surrogate (medical power of attorney). For some people, a trust may also make sense. When putting together a plan, you must be mindful of both federal and state laws governing estates. Click here for a blank Living Will that you can personalize and use. Click here for a blank Healthcare Surrogate form.
Taking inventory of your assets is a good place to start in estate planning:
Your assets include your investments, retirement savings, insurance policies, and real estate or business interests. Ask yourself three questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you're ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself?
Everybody needs a will:
A will tells the world exactly where you want your assets distributed when you die. It's also the best place to name guardians for your children. Dying without a will, also known as dying "intestate", can be costly to your heirs and leaves you no say over who gets your assets. Even if you have a trust, you still need a will to take care of any holdings outside of that trust when you die.
Trusts aren't just for the wealthy:
Trusts are legal mechanisms that let you put conditions on how and when your assets will be distributed upon your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your heirs without the cost and delay of probate. Some trusts also offer greater protection of your assets from creditors and lawsuits.
Discussing your estate plans with your heirs may prevent disputes or confusion. Inheritance can be a loaded issue. By being clear about your intentions, you help dispel potential conflicts after you're gone.
Change your domicile to Florida. Think about it! Are you sure your are willing to do the things necssary to change your domicile? Make the move. Make it real. Sever the ties. Click here for a Checklist of things to do to change your domicile.
The federal estate tax exemption, the amount you may leave to heirs free of federal tax, has been rising gradually. In 2022, it is $12.06 million. Meanwhile, the top estate tax rate is coming down.
You may leave an unlimited amount of money to your spouse tax-free, but this isn't always the best tactic. By leaving all your assets to your spouse, you don't use your estate tax exemption and instead increase your surviving spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies. Plus, it defers the tough decisions about the distribution of your assets until your spouse's death.
There are ways to give charitable gifts that keep on giving. If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.