Balliett Financial Services, Inc.
What are the most serious problems you see in estate planning? Unwillingness to pay for estate planning is the first. Unwillingness to be involved with it is the second. Unwillingness to make the necessary decisions is the third. Also. many people are:
Any other problem we need to know about? Lack of participation in the strategy-building process by one spouse or the other. That's a bad thing, it's fairly common, and:
It always seems to lead to a disaster when the noninvolved partner becomes the surviving spouse. Typically:
The first jackal to knock on the door after the funeral talks the surviving spouse into destroying the estate plan that had been designed to protect against incompetence, deception, and fraud.
The only way we've found to prevent the problem is for both partners to be devoted to the making of a sound strategy that both understand and enthusiastically support.
Legal fees are so costly! Isn't there an inexpensive way to do a good, simple estate plan? Yes. if your situation is not the least bit complicated. If so, you can prepare all the necessary documents yourself with the help of a computer and incredibly easy-to-use software that, at this writing, costs under $60. Also:
You need to know that complex, state-of-the art estate planning can cost far less than many lawyers charge even for the run-of-mill kind. (We know where you ought to go.)
Estate-tax planning seems so complicated. Isn't there a simple way? Yes. Each spouse leaves everything above the estate-tax exemption amount to each other, and the survivor leaves everything to a tax-qualified charity. Result: No federal estate tax, even if you're zillionaires.
We're not zillionaires, but we do have a net worth that's well above the estate-tax exemptions for two spouses. Now what? You need a competent lawyer who will put your best interests ahead of his own. If you have a relationship with a good lawyer, we will be happy to work with your choice. If you do not, we can refer.
We have children. How to create a financial safety net for them? The best way may be to put some money into a trust fund for them.
Your lawyer should know, without researching, that under present law you can gift, tax-free, as much as $1,000,000 into it in 2007, 20080, and 2009. So can anyone else. Any such gift can be made directly to a recipient or indirectly as a contribution to a trust fund.
$1,000,000 is the lifetime tax-free limitation on gifts made by any one individual. It's part of the total lifetime exemption from estate taxes -- $2,000,000 in 2008 and 2009. The Congress may or may not revise that figure. At this writing, no one knows if the federal estate tax will be repealed, revised, or continued pretty much as is.
In addition to the lifetime exemption, each person can give, tax-free, $12,000 in 2008 and $13,000 in 2009 (a figure to be adjusted that's adjusted for inflation from time to time) to each of an unlimited number of people and also pay directly (not reimburse) each beneficiary's health-care and educational expenses. However:
Rules must be followed, and they are always subject to change. We know about them, so we can help. It's what we do.
What happens to the money in trust? With good investment and luck, it may double every 8 to 14 years, if not diminished by big distributions.
We can help you find an honest, competent, affordable, independent trust company to handle your trust's recordkeeping, tax returns, regulatory work, and the other ongoing administration. And if you wish:
A trusted member of the family can be the decision-making co-trustee alongside a trust officer. What's more:
Balliett Financial can handle the investment work as long as you or your beneficiaries are happy to have us do so.
If I die unexpectedly, soon, how can I provide for my mom? Depending on your financial situation, hers, and her estate plan, any of several solutions may be appropriate. The best answer is the one that best fits your situation. It could depend on your health and hers, how much money she has and you have, and who else needs your protection.
We can help you find the right answer if you can obtain the necessary information and documents from her. An alert, competent lawyer can be invaluable in the search for the best alternative for her, for you, and for any others who depend on you for financial security. The best approach may depend on new legislation or a recent court case.
I don't have a spouse, but I do have a life partner. How to avoid an estate tax? Leave the exempted amount to your partner and any remaining balance to a qualified charity. We can tell you about the fascinating charitable alternatives available to you. The right kind could be your financial legacy (whether the money involved is into 5 figures, 12, or in between).
All of my investment assets are in my 401(k) and IRA. What to do? Make sure your beneficiary designation forms are filled in the way you have planned. Also:
Be sure exact copies are in safekeeping where your executor (personal representative can find them quickly and easily. We can help.
Life insurance policies, too? Yes. Be sure the right person or persons are named as owners and as beneficiaries. Make sure each policy is in safekeeping where your executor can quickly access it.
On death, a timely application for benefits must be made. We can help.
Why not just own everything jointly? If you both die in the same plane crash or car accident, all assets will be disposed in intestate probate.
If either partner survives, the estate plan will need to be revised. There are usually better ways to proceed than to own jointly. We can help.
What's wrong with probate? It can put the family's finances on the public record, a public document that attracts extortionists, blackmailers, and lawyers. It's time-consuming, expensive, and messy.
In intestate probate, a deceased person has failed to protect assets from the probate process and to name someone willing and able to close his estate. So:
A county judge appoints someone whose services are compensated from the assets passing through probate. Some places, that might be a political-party hack in need of a favor.
What's the next step? First, become our client. Then, send or bring in copies of your beneficiary forms, wills, and trust documents so that we can see what your present strategy is. We may like it. If we do, we will say so. If it can be improved, we will help you make it better. This, too:
Tell us what you'd like to accomplish. We can show you how appropriate estate planning can get what you want. Possibilities include:
For a lot more information on legacy and estate planning click here
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