What Is Advanced Estate Planning?

When a person sits down with an attorney to determine and make arrangements for the disposal of their assets and estate, they are doing what is legally referred to as estate planning. Estate planning consists of many different facets including willsliving willsrevocable living trusts, basic estate planning, business succession planning and more.

The purpose behind estate planning is to create a legally binding plan which will protect and ensure the proper distribution of one’s assets and estate according to their wishes after they are deceased. Proper estate planning helps ensure the beneficiaries of the estate receive the largest amount possible, with the least amount of delay. It also protects the estate from taxes which are commonly imposed during the transfer of assets.

Beyond basic estate planning is advanced estate planning. Advanced estate planning is highly beneficial for those who either have sizeable estates or who are looking to preserve and protect their estate for future generations. Advanced estate planning can include asset protectiongiftingirrevocable trusts, irrevocable life insurance trusts (ILITs), intentionally defective irrevocable trusts (IDITs/IDGTs) and irrevocable charitable trusts (CRATs/CRUTs/CLATs/CLUTs). Attorneys knowledgeable in advanced estate planning are also able to put together special needs trusts and self-cancelling installment notes (SCINs).

If you have questions, or are interested in implementing, advanced estate planning, contact WealthPLAN, PC right away so that they can analyze your circumstances and determine your exact legal needs. The firm represents over 30 years experience in estate planning, advanced estate planning, tax, trust administration and litigation.

They also have a California State Bar certified specialist in Taxation Law, Probate, Estate Planning and Trust Law in house.

Is Advanced Estate Planning Right For You?

There are ways to determine whether or not advanced estate planning would be beneficial. Some indicators that you may need advanced estate planning would be:

  • You are single and your net worth is over $1,000,000
  • You are married and your net worth is over $2,000,000
  • The state you live in has its own estate taxes, and your net worth is more than the state exemption
  • You wish to create an education fund for children or grandchildren
  • You know you are going to be receiving a large inheritance,
  • Your 401(k) or IRA accounts have more than $200,000 in them,
  • You have a significant life insurance policy
  • You wish to leave a portion of your estate to a charity,
  • You want to ensure your property and money stay in the family,
  • You want to provide for your children, grandchildren and future generations.

How Can Advanced Estate Planning Help Minimize Estate Taxes?

Advanced estate planning uses sophisticated financial strategies to reduce estate taxes and pass more wealth to your chosen beneficiaries. To help minimize estate taxes, our attorneys can help you utilize tax-free gifts, charitable trusts, generation-skipping trusts, irrevocable life insurance trusts, irrevocable trusts and other arrangements.

Can Advanced Estate Planning Benefit Business Owners?

Many business owners can utilize advanced estate plans for tax purposes and business succession planning.

With the right advanced estate plan, an owner can smoothly transition ownership of a business to their beneficiaries or chosen successor through buy-sell agreements and life insurance funding, which can provide continuity for company operations. This can allow for financial security for beneficiaries and prevent the disruption of company management.

Grantor-retained annuity trusts and family limited partnerships can help transfer ownership without triggering massive tax obligations, which can help preserve a family business for the next generation. Meanwhile, irrevocable trusts can help protect personal assets from creditors.

In short, business owners who engage in the appropriate advanced estate planning can better preserve generational wealth, maintain control over a family business and provide peace of mind for their loved ones.

What Are The Potential Pitfalls Or Common Mistakes In Advanced Estate Planning?

Just like a basic estate plan, an advanced estate plan can face many pitfalls. For example, many people make the mistake of not updating their advanced estate plans regularly. As a result, their estate may not align with their wishes. Another reason to regularly update an advanced estate plan is to stay consistent with new tax laws.

Another common issue many people make with their advanced estate plan is not properly funding their trusts. Without proper funding, the trust will be ineffective at protecting the estate from unnecessary taxation or avoiding probate.

What Are The Steps Involved In Creating An Advanced Estate Plan?

To begin the advanced estate planning process, it is important to set clear goals and objectives you wish to meet, such as establishing trusts for family members or reducing taxes. If you are interested in an advanced estate plan, then our attorneys at WealthPLAN, PC, can help explore your legal options. We can look at the complexity of your estate and strategize an advanced estate plan that fits your particular interests.

Do you have questions about advanced estate planning? Contact an estate planning attorney at WealthPLAN, PC today. Call 408-918-9030