Estate planning is the process of arranging for the management and distribution of one’s assets upon and after death. A good estate plan will also minimize taxes and other expenses, and prepare for any chance of the client’s incapacity during their lifetime. An experienced estate planning attorney can answer questions and advise you on the best course of action for your personal situation.
Who will care for my children if something unexpected happens?
How can I guarantee my assets are divided to the right people based on my wishes?
Is there a way to ensure my descendants use their inheritance wisely?
What options are available to minimize estate taxes after my death?
Will my family end up in a lengthy and stressful probate proceeding?
The process of estate planning involves a broad range of techniques. For many years, Jessica Kimbrell has been helping Kansans and Missourians prepare their estates and provide peace of mind for themselves and their loved ones.
Last Will and Testament
Often called a “simple will,” this is a great basic document for many people who want to ensure their wishes are followed with regards to who receives their property and who cares for their children after their death.
Durable Power of Attorney
The importance of well-drafted durable powers of attorney documents (for both financial and health care decisions) cannot be overemphasized. These documents allow you to appoint someone else to handle your affairs for you when you become unable to do so yourself, and the range of power that may be given to someone is quite extensive for both medical and financial decisions.
Living Will
This document is your own statement as to what you want to be done by way of medical treatment. If there is no one that holds a durable power of attorney for health care, then a living will is vital. Without it, Missouri and Kansas law currently requires that a doctor continue to provide water and food by tube even when there is no brain wave activity.
Living Trust
Establishing a Living Trust is a way to avoid probate and control the assets for those you care about after your death. Additionally, unlike a will, a Living Trust is not a matter of public record upon dealth, affording the estate far more privacy.
“Pay On Death” and “Transfer On Death”
Both of these designations dictate that a particular asset — such as a bank account, a certificate of deposit or stocks and bonds — be transferred to the person or a trust you designate immediately after your death. This method is far preferable to making someone a joint owner, as it doesn’t transfer any ownership until your death.
Federal Estate Tax
Simply put, the Federal Estate Tax is a tax the government imposes on your assets at your death. Fortunately, the current “unified credit” of approximately $11.58 million exempts the vast majority of people from paying estate taxes at death, though this amount is likely to be reduced. As the value of personal residences grows, along with the value of IRAs, pension and profit-sharing plans, automobiles, personal savings, and the face value of life insurance, we can help keep your hard-earned assets in the hands of those you care about.
Other Techniques
An estate planning attorney can also draft Charitable Trusts, Irrevocable Life Insurance Trusts and other more complex strategies. For clients with sufficient assets to make these techniques appropriate to consider, these devices can truly be a “wealth saver” and, in many cases, even a “wealth builder.”
Estate Planning to Protect Your Children
The thought of an untimely death of yourself or a spouse can be distressing. But, it is also a potential reality that is important to plan for to ensure your children will be cared for should the unthinkable happen.
Setting up a Last Will and Testament as part of your estate plan is very important because it is the only document in which you can name the person or persons you want to appoint to act as guardians for your minor children. Without one, your family will have to go through the probate process to appoint a guardian who will oversee the personal upbringing of a child.
Having a plan in place will also allow your family to dictate how assets should be distributed at the time of death, or saved for the future. Without a plan, a process called “intestate administration” will take effect. For example, in Missouri, if you are survived by a spouse and children born to both of you, then your spouse would only be entitled to the first $20,000 in value, and one-half of the rest. The other one-half would be split equally among the children. And, if the children are minors (under 18), a conservatorship would have to be established through probate court in order to oversee the management of assets for the children until they reach the age of majority.