Estate Planning - Part Two

Estate Planning by David Eghbali - Part Two

In the previous article about estate planning (you can find it here), we discussed some key concepts to think about when planning your future. This second part of the series of estate planning by finance expert David Eghbali further illustrates the importance of making sure you take the time to think about your family, estate and finances. As we stated in the previous article, if you have amassed any wealth or possessions of value, you need to be pragmatic and understand that when you pass away, there are a lot of loose ends that need to be addressed. Oftentimes people who have the best intentions to leave behind property, core assets and finances to their spouses, family or loved ones fail to do so because they didn’t take the time to properly plan their finances, estate planning and trusts.

David Eghbali is a finance expert that suggests you take the time to think through your portfolio. What you might not think is important now, can get messy with the courts, government and family very fast. Having a clear direction on what is being distributed to whom not only mitigates fighting within a family but allows the courts to define what goes where and who gets what. By reviewing this article the hope and goal is to best inform you and define what types of assets you may have and better help guide you to making the best decisions between you, your family and your professional advisor.

Disclaimer: David Eghbali is not an attorney and the contents of this article is the expressed opinion of David Eghbali and his research. When reading these documents always consults your tax attorney and the recommendation of your tax and finance professionals specializing in the estate planning sector.

Let’s continue with the second part of this article. We finished in Part One of Estate Planning by David Eghbali with ways to avoid probate court. Now let’s begin with big estate planning:

Big Estates
Large estates with a ton of assets can get tied up in probate court for years. One way to avoid probate is to establish a revocable living trust. David Eghbali assures it cannot be technically considered a part of the estate and escapes the probate demands. The trustee is set up with power of attorney and can disperse the estate as you wish once you have passed.

Small Estates
The easiest solution for small estates that really only deal with bank accounts, cars and homes is to establish a pay-on-death account. It allows certain items to be transferred to the beneficiary right after death. It avoids probate and lets your loved ones have easier access to the funds they need to keep going.

Establish Joint Ownership

David Eghbali offers a great solution for smaller estates. Add a friend or family member to the ownership paperwork of all accounts and titled items so that probate is not even necessary. Ownership will automatically transfer when you die.

Medical Directives

No one can plan for a serious medical event. It is when you do not plan that things seem to happen more frequently. David Eghbali suggests asking yourself who you trust to make sound medical decisions. make firm decisions about the aggressiveness you want shown in life saving measures and what types of care are desired. The appointed person will have to be given a medical power of attorney.
Financial Directives

David Eghbali also points to the need to stabilize your estate with all financial dealings if there is a medical emergency and you are unable to make decisions. A financial power of attorney can be given to a trusted friend or family member that allows them to make those important decisions for you. This allows them to pay the bills and mortgage while you are unable.

The Perfect Trust      

Finance expert David Eghbali cautions that there should be a safety net built into a trust. There can be unforeseen problems with the trustee and you should have a limited power to remove the person and replace with someone more suitable. Allowing a spouse limited power over the trust can ensure that if children are getting a portion and they are having legal or drug/alcohol issues that it can be monitored or changed as needed. It will keep them from blowing through all of their money in a time of crisis.

The Importance of Business Trusts            #BusinessTrusts

Tensions and arguments can rise and erupt quickly when it comes to business ownership at the time of your death and there is no established plan on who takes the helm and ownership. You can easily have it land in the hands of someone you cannot stand, such as the family of in-laws. David Eghbali offers a brilliant solution. Build in a buy-back option into a trust so that the family you want to retain ownership will have that ability.

Beyond a Will or Trust

David Eghbali points out the benefits of checking to see what you can do beyond a will or trust to ensure that your assets are going to the right benefactor. Bank accounts, retirement accounts and investment portfolios can often be designated to fall into ownership of a designated benefactor upon your death. This will be less you have to worry about placing in a trust or will.

Change Retirement Accounts to Roth #RothAccounts

The tax man will be showing up to get a share of the estate when you pass away. David Eghbali urges people to switch any traditional retirement accounts to Roth, which are tax free to distribute after your death. Traditional retirement accounts will be assessed taxes at the time of transference to the benefactor.

The Estate Planning vs Tax Exempt Link #TaxExemptions

since the tax exempt level has been raised to over $5 million dollars the wealthier people tend to put off or ignore estate planning. According to estate planner David Eghbali less importance tends to be placed on the value of making sure all of your assets go to the proper benefactor and are alternatively seeking tax shelter. It is nice that the tax exempt amount has risen, but it does not take away from the importance of a complete estate plan.

Estate Plan Checklists

David Eghbali suggests creating a checklist to make sure that your estate plan is in properly in place and that you have all available documents on hand. You will need things like:

• Itemized tangibles list
• Itemized non-tangibles list
• Current Life Insurance and stock portfolio records
• Deeds and titles
• Designated trustees, administrators and those you plan to give power of attorney

Keep Everything Current
David Eghbali also urges you to take the time to make sure all of the paperwork and lists are kept up-to-date. Any added assets need to be documented in some fashion. At some point it might take writing a last will and testament all over again to add the necessary items. Organization is key to making sure your records are complete.

Real Estate Planning Made Easy
Financial expert David Eghbali has spent years in the field and his advice for estate planning is both common sense approach and minimizes problems after you are gone. It is worth investing a little time to make sure that your voice is heard after you die and your assets go right where you need them. Avoiding the unpleasant subject of death can leave your loved ones struggling, with little in the way of support. 
The documents are all basic and take very little time to fill out. All it requires is a little time commitment to create your itemized list and decide who gets what. A little work now will save a lot of headaches and arguments later. An honest estate plan is one of the most loving things you can do for your family and offers you true peace of mind.