What is Estate Planning

What is Estate Planning?

Let’s start with what it isn’t. Estate planning is not just for the wealthy. It is not just about avoiding probate and minimizing taxes. It is not just transferring wealth at your death. It is not about which documents to use. It is not a one-time event.

It is about your family, their needs, and your goals. It is about taking care of yourself and your loved ones at all stages of life. It is about results and meeting your expectations. A proper estate plan most importantly ensures and provides detailed, clear, comprehensive, customized instructions for handling your affairs in times of mental disability or death. If it is relevant, your plan should also ensure that your estate avoids the cost and delay of probate and minimizes estate taxes as well. A proper plan coordinates beneficiary designations for your life insurance and retirement accounts to maximize plan benefits in accordance with your goals. If you are a business owner, your plan should also provide a mechanism for business succession. Most importantly, a proper plan keeps you in control of your estate.

Proper planning starts with a thorough understanding of your needs, goals, dreams and aspirations. It takes into account your Values not just your Valuables. It starts with a thorough understanding of your family – those who you care about and who will someday receive the benefits of your success – and your family’s dynamics. Family can be defined in many ways. For some people, family includes children and grandchildren. For others, it may be friends or community, nieces, nephews or other loved ones. Unfortunately, most plans are built on tax planning instead of family planning; resulting in plans that don’t work. Personal family concerns and goals are given a lower priority, if they are discussed at all, instead of being the very foundation of the plan.

Most estate plans just don’t work. This is mainly because, for most people and most attorneys, estate planning is treated as a transaction rather than an ongoing process. Too many people say “I did my estate plan,” and then put it on the shelf to collect dust. Because life is constantly changing, your estate plan must be constantly changing too. Estate plans that really work require ongoing maintenance to fine tune them to your changing goals, family circumstances, and changes in the law. Plans that work also require education of you and your “helpers” – those individuals who will carry through with your plan when you can no longer do so. The most thorough custom tailored plans won’t work if the person carrying it out doesn’t know what he or she is supposed to do. Education is the key.

Many plans fail because much of what passes for estate planning is little more than word processing. You are asked a few questions and then the drafter decides which “plan” is right for you and fits you in a box. This is not planning – this is simply document preparation. You shouldn't pay a licensed professional to do word processing. Your professional’s value is in his counsel and advice, based on knowledge, wisdom and experience. A successful estate plan is one that meets your goals and expectations, and keeps you in control of the process and the results.

To ensure a successful plan, we at Idaho Estate Planning will: 1) educate you and your helpers; 2) take the time to get to know you, your family, your desires, your concerns, your goals, and your potential problems; 3) gladly and patiently answer questions until you understand the concept or issue; and, 4) based on experience with the problems and results caused by poor planning, help you design and implement the plan that fits your concerns and goals.


 

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