Page 12 - Means Wealth 2020/2021 Perspectives

ESTATE PLANNING CONSIDERATIONS

1. Be sure you have named a suitable and responsible personal
representative, executor or trustee. It is very important to name
fiduciaries that you can trust considering their age, maturity and level
of financial knowledge. You should periodically assess who you have
appointed, as circumstances and relationships change.
2. The rationale behind distributing assets can change over time. For
example, you may have set up a trust for your children whereby upon
the death of you or your spouse, a certain amount of assets would
be distributed to them at certain ages, say one half at age 25 and the
assets, those assets could be “
other half at age 35. When the
child reaches the stated age,
they may not exhibit financial
We are what we repeatedly
responsibility. In addition, if
do. Excellence, then, is not
they marry and co-mingle their
equitably distributed upon an act, but a habit. “
– Aristotle
a divorce. You may want to
periodically rethink how assets
within a family should be distributed. One child may be very financially
set, while another struggles. Equal distribution may have been the
goal initially, but circumstances change. These are a few factors you
may wish to consider when reviewing your estate plan. Consider a
review every five years after age 50.
3. Be sure your family’s advance health care directives, consisting of your
health care power of attorneys and living wills, are in place. This will
ensure your health care representative can make informed decisions
regarding your family’s care.
4. Accumulation of wealth can create estate tax issues. Current federal
law allows each citizen to transfer a certain amount of assets free of
federal estate and gift taxes. This is referred to as the “applicable
exclusion amount.” In 2020, every citizen may, during their lifetime
or death, transfer assets valued in the aggregate of $11.58 million
per individual or $23.16 million for married couples. This is over and
above the annual gift exclusion per individual of $15,000.
5. Each state has its own estate and income tax laws. Some states are
common law property states and others are community property
states. Simply stated, common law property means that assets and
debts you acquire during a marriage are yours alone unless otherwise
indicated by a title or other legal document. Community property

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