Did you think that estate planning is only for seniors? Are you married? Do you have children? Do you own a home or other valuable assets? If you answered "yes" to any of these questions, you probably need an Estate Plan.

ESTATE PLANNING IS NOT JUST FOR SENIORS

Most people think of estate planning as something of interest only to senior citizens. While the vast majority of our clients are indeed seniors, in reality estate planning is something that everyone should think about.

YOUNG PEOPLE JUST STARTING OUT
Young people just starting out should definitely be concerned about estate planning, especially if they have minor children. In a will, you can specify whom you want to be your children's guardian should you both die. While the court has the final say, your wishes will be honored, unless there are compelling reasons not to do so.

If you do not specify whom you want as guardians, then the court will appoint someone, with no guidance from the most knowledgeable person, you! It is possible that there will be a fight over custody, either by the in-laws, brothers and sisters, or other family members. Nothing can be more unfortunate and tragic for your children than to have their parents die, and then to be fought over, as if they were pieces of property.

Depending on the size of your assets, a trust, in addition to a will, might be in order as well. If you leave only a will, then the Probate Court will have jurisdiction over your property until your youngest child turns eighteen. With attorney's fees and probate bond fees so high, far too much of your estate can be eaten up by administration costs, rather than going for your children's support and education. With a trust, you can be assured that 100% of your money will be used for the benefit of your children, and will not go into the pockets of an attorney and an insurance company.

A trust may be especially appropriate for young people with large insurance policies. It is a fact of life that many young persons are worth more dead than alive. That is, many young people have large obligations, such as mortgages, student loans and car loans. However, many young people, especially those with small children, often have large insurance policies. What will happen to this insurance if you both die? Without the proper beneficiary designation, it will go into Probate, and may well end up being consumed by your creditors. With the proper trust planning, however, you can assure that the money will avoid probate and creditors, and will end up working for your children.

YOUNGER PEOPLE WITH LARGE ESTATES
If your estate (or the combined estate of you and your spouse) is over $650,000, then, on the second to die, your estate will be hit by extremely high taxes. The Federal Estate Tax is no laughing matter-- it STARTS at 37%, and, depending on the size of your estate, can go as high as 55%. Fortunately, with proper trust planning, a married couple can double the tax free amount, and can avoid all federal taxation up to $1.3 million.

Although most people do not have estates of this size, the amount adds up quickly. When you calculate the size of your estate for federal tax purposes, you have to include everything . Certainly the obvious things are included, such as the house, car, bank accounts, and the like, but other, less likely things are included as well. For example, the death benefit (not cash value) of life insurance is included in your estate. For many people, this can be several hundred thousand dollars. IRAs, annuities, and other types of retirement accounts are likewise included. So is personal property, such as jewelry, antiques or gun or coin collections. If you have made any gifts during your life of over $10,000 per year to any one person, those gifts are also included in your estate for federal tax purposes.

If a married couple does have over $650,000, then, in order to save taxes, they each need to make a special type of trust. In order to do this, both spouses need to be alive and competent. If one spouse dies prematurely, or becomes incompetent, then the opportunity is lost. Therefore, no matter how young you are, if your estate is at or close to $650,000, proper estate planning is essential.

PERSONS WHO ARE CONCERNED ABOUT LIFE SUPPORT
Everyone, regardless of age, is subject to life threatening illnesses or injury. Should this happen to you, then, unless you have signed the proper legal documents, you will generally be placed on life support mechanisms. Even if these machines are the only thing keeping you alive, and you are in a vegetative state with no hope of recovery, once the machines are turned on, it is virtually impossible to have them turned off.

Most people do not wish to be placed on life support. If this is the case with you, then you should consider signing a Living Will Declaration. The Living Will is a document that states your intention to avoid being placed on life support. The Living Will is ONLY used if you are incompetent to make your own decision, AND two physicians (one of whom is your treating physician) have determined that you are terminally ill.

A document related to a Living Will is a Health Care Power of Attorney. Simply stated, this is a document that can allow a spouse, child or other trusted person to make health care decisions for you should you become incompetent to make them yourself.

As you can see, there are many issues in estate planning that are of interest to persons of all ages.