Advanced Estate Planning: What Is It And Who Needs It?

Basic estate planning does two, relatively simple, things: it establishes a plan for what will happen to you and your property if you become disabled, and it establishes a plan for how your property will be distributed when you pass away.

A basic estate plan is sufficient for people with relatively few assets, and no special concerns that need to be addressed. But, what if youre in a more complicated situation? For example, what if youre a business owner, or you have a child with special needs? Then, your estate planning attorney will help you determine which advanced estate planning tools are appropriate for addressing your situation. Here are some examples:

Minimizing Your Estate Tax Bill: If youre concerned about the estate tax, which is scheduled to make a comeback in January with a much lower, $1 million exemption amount, then your attorney can help you find options for reducing your tax bill. These options might include an AB trust for you and your spouse, an Individual Life insurance Trust to remove a large insurance policy from your taxable estate, or a Qualified Personal Residence Trust to remove the value of your home from your estate.

Planning for a Child With Special Needs: For parents of disabled children, advanced estate planning is particularly crucial. Without a carefully crafted Special Needs Trust, your child could inherit property directly from you, causing him or her to lose essential government benefits.

Planning for a Small Business: As a small business owner, you need to have a plan in place for who will take over your business if you pass away or become disabled. Advanced estate planning can help with this.

Protecting Your Childrens Inheritance: If youre worried about how your children might choose to spend their inheritance, or if you want to keep their inheritance out of the hands of creditors or divorcing spouses, then you can use tools like a lifetime trust. This way, your children can enjoy the maximum benefit from their inheritance.

Your estate planning attorney can help you figure out whether you need more than a basic estate plan, and put the right plan in place to accomplish your goals.