Estate Planning
Estate Planning is not just for the wealthy. the amount of planning is
related to the complexity of the estate. Basic planning should start with
a will for everyone. More complex estates need additional planning as
in-depth provisions in wills, gifting considerations, and one or more
trusts. Individuals who fall in one or more of the following categories
should consider more in-depth planning:
- Net worth in excess of $600,000.
- Ownership in a business
- Persons with potentially high incomes in the next few years.
- Families with dependents that have special considerations (i.e. mental or
physical disabilities)
Without proper planning, your estate could be cut in half by federal estate
taxes. Proper planning can prevent problems such as:
- An immediate need for funds to pay estate settlement costs.
- Inadequate cash flow for survivors.
- Probate delays in distributing assets.
- Estate shrinkage due to forced liquidation or conversion of liquid assets
to pay estate taxes which are due within nine months of death.
The following table illustrates the estate shrinkage of some famous people.
| Name |
Gross Estate |
Total
Settlement Cost |
Net Estate |
| W.C. Fields |
$884,640 |
$329,793 |
$554,887 |
| Clarke Gable |
$2,806,526 |
$1,101,038 |
$1,705,488 |
| Walt Disney |
$23,004,851 |
$6,811,943 |
$16,192,908 |
| Marilyn Monroe |
$819,176 |
$448,750 |
$370,426 |
| Elvis Presley |
$10,165,434 |
$7,374,635 |
$2,790,799 |
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