Imagine the emotional pain of losing someone close to you, such as a parent or a sister or a brother. Then imagine discovering that this person failed to do any estate planning, leaving the family with the heavy responsibility of sorting out his or her property and debts, and of making arrangements for the future care of his or her children.

As unpleasant as it is to think about, the fact is, no one gets out of this world alive. There are certain problems, which, if not planned for, can create a burden on those who are left behind. An experienced estate planning attorney can help you frame the issues you need to address and can create a thorough estate plan to help you achieve your objectives.

Your Estate

Your estate includes all the property that you own at the time of your death. Estates that exceed certain amounts may be subject to both state and federal death taxes, which are taxes imposed on the right to transfer or receive assets. Retirement benefits, personal residences and life insurance are all potential assets that could contribute to a death tax problem. Federal estate taxes can sometimes be as high as 55% of the net taxable estate, and each state has its own system of death taxation as well. Through proper estate tax planning during your lifetime, you may be able to eliminate some or all of this tax cost to your beneficiaries. 

Wills and Trusts

If you died tomorrow, who would receive your home, your personal property, or your business? Would you like the state to determine who gets your possessions? This happens to people who do not state their intentions in a will or trust. Without a will or trust, your instructions may not be followed.

Why would anyone pay additional taxes if they were not due? A will or trust can incorporate provisions to help save taxes and also to achieve your intentions for how and when your assets should be distributed or used. Proper trust planning may reduce or even eliminate federal estate taxes. Transfers during your lifetime and at death are subject to (generally speaking) a unified federal estate and gift tax system. Certain transfers are excluded or sheltered in some ways from this transfer tax system, which often allows for thoughtful planning opportunities.

Care of Children

If you were to die tomorrow, who would be best suited to raise your children: siblings, parents, aunts, uncles, friends? Consider the candidates' ages, health, financial position and the stability of their current situation. Parents can nominate guardians for their minor children in a will. Without a will, you risk a court appointing someone who would not be your first choice. It might even cause a battle among your surviving relatives over the custody of your children.

You should also consider establishing a trust for your children or grandchildren so that assets will not be distributed to them at too young an age. The trustee can care for the assets until some specified time when your children are more mature. Establishing a trust allows you to give the trustee direction over how the money is to be used for your children's care.

Conclusion

Take affirmative action today toward relieving family members of the burden of sorting through your estate tomorrow. Procrastination may cost you the opportunity to save taxes and the opportunity to determine when and who will receive your property upon your death. Whether your estate requires complex planning with trusts because of your family circumstances or because of tax questions, or whether a simple will may be adequate, it is advisable to have an experienced lawyer prepare your estate plan. You will gain the peace of mind that comes from knowing that your children will be cared for and that your property will be disposed of or managed according to your wishes.

Contact our law office in Glen Allen, Virginia, to schedule an estate planning consultation. To prepare for your consultation, please print, fill out, and bring in this estate planning questionnaire.

The firm represents individuals, families and family trusts, charitable organizations, and businesses, mostly in the states of Virginia, Maryland, and Florida, and in Washington, D.C.