Estate Planning Guides
Learn why estate planning is important and how it works with our helpful guides and articles.
Nobody wants to think about, let alone plan for, the end of their life. However, it’s one of the most important things you can do because it gives you a say in where and to whom your property goes. Our detailed guides will outline the basics of the estate planning process. This includes will-drafting, annuities, trusts, and more. We’ll also explain how a financial advisor can be an invaluable resource as you build your plan.
Estate Planning Basics
What Is Estate Planning?
Aug 30, 2024
What Is an Estate Sale?
Mar 29, 2024
What Is an Executor?
Jul 19, 2024
Gifting for Estate Planning: What to Know
Jun 28, 2024
Frequently Asked Questions
What type of professionals help with estate planning?
In many cases, you’ll hire an estate planner (who may or may not already be your current financial advisor) to help you. These experts coordinate and help you with certain tasks, like establishing trusts or drafting a will. They may also contact other professionals with more specific expertise, such as:
- Attorneys
- Accountants
- Bankers
- Life insurance agents
- Notaries
What happens to an estate when there isn’t a will?
When someone passes away without a will, this means they “die intestate.” In this case, it’s up to the government and predetermined laws to decide where the person’s assets go. Typically, a state judge assigns an administrator to carry out the probate process.
Unfortunately, when a will isn’t in place once someone dies, there’s a possibility that their wishes may never be carried out. For instance, money or property could go to someone they didn’t intend as a beneficiary. Or, if there are surviving children, they may end up in the custody of someone different than the deceased would’ve preferred.
Because of the issues outlined above, it’s very important to have a will, even if you’re young. The unexpected, even if seemingly impossible, could happen. In this case, you want to make sure your loved ones are taken care of by leaving specific instructions behind.
Why do people put their estate in a trust?
For estate planning purposes, people use trusts to circumvent probate and transfer funds to those they want. They’re also valuable because of their tax advantages, allowing individuals to avoid estate taxes if assets are placed in an irrevocable trust.
Be aware, however, that trusts can be quite complex to set up. Thus, we recommend having a financial advisor and other professionals, such as an attorney and accountant, by your side before deciding to establish one.
When do I need to pay estate taxes?
As of 2024, federal estate taxes only apply to estates worth $13.61 million or more. At this limit, the tax rate begins at 18% and maxes out at 40% if the value exceeds $1 million more than the original threshold. State governments have similar laws, but the threshold varies.