Estate Distribution

Now that you have spent a lifetime accumulating assets, make sure the estate you have created is distributed the way you want it to be when you die. An estate plan can help your heirs avoid probate and potentially lessen the tax burden on your estate.

 

Many Americans haven't taken the simplest steps (i.e., making a will or establishing a trust) to avoid probate or protect their estate from taxation — even fewer develop a comprehensive estate plan. Many who have prepared a plan haven't updated it in years, which is especially important for those who have acquired significant property, businesses or investments.

 

Whatever the sources of your wealth, the Internal Revenue Service will take at least 45 cents for every dollar you leave above the current $2 million tax-free amount in 2007.

 

Although the tax-free mark is increasing, a working couple can still exceed the limit, especially given the potential for high returns of the equity market. Even in retirement, the value of your assets can increase and push your estate over the tax-free limits.

 

 

This is especially important if you have significant assets. Wherever you are in the estate planning process, there are a number of factors you should consider. Estate planning generally is not a do-it-yourself project. An estate planner can be an invaluable resource to you in this process.