Estate Planning Strategies & Trust Services

Estate plans aren’t just for the wealthy. Nearly everyone can benefit from them, and Lions Bridge Financial President Jayne Di Vincenzo, a CEP ® (Certified Estate Planner), is in a great position to shepherd your plan.both.

Ten Things You Need to Know:

1. No matter what your net worth happens to be, you need an estate plan so that your family is provided for and your financial goals are met after you die.

2. An estate plan has at least three important elements: a will; assignment of power of attorney; and a living will or a medical power of attorney. Some people may also want a trust to be a part of their estate plan. (Consult with your estate planning attorney to discuss your specific situation.) If you do not have an attorney, we’ll be glad to refer you to an experienced estate planning attorney we know and trust.

3. Start by listing all your assets: your investments, retirement savings, insurance policies and real estate or business interests. Then ask yourself three questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you can’t do it yourself? Whom do you want making medical decisions for you if you can’t?

4. Everybody needs a will. A will spells out exactly where you want your assets distributed when you die. It's also the best place to name guardians for your children. If you die without a will, it can cost your heirs a lot of money and a court will decide who gets your assets. It’s unwise to have a trust without a will because a will addresses any holdings outside of the trust.

5. Trusts aren't just for the wealthy. If you have young children, a child with special needs or net worth is at least $100,000, a trust may make sense for you. Trusts let you put conditions on how and when your assets will be distributed after your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your heirs without the cost and delay of probate court, which administers wills. Again, your attorney will be able to advise you on your specific situation. We do not provide legal advice. LPL Financial Representatives offer access to Trust Services through The Private Trust Co. N.A. an affiliate of LPL Financial.

6. Discussing your estate plans with your heirs may prevent disputes or confusion. By being clear about your intentions, you help dispel potential conflicts after you're gone.

7. Keep abreast of the federal estate tax exemption -- the amount you may leave to heirs free of federal tax – because it changes regularly. The estate tax hit $3.5 million in 2009, but was phased out completely in 2010, but only for a year.

8. You may leave an unlimited amount of money to your spouse tax-free, but that isn't always the best tactic. By leaving all your assets to your spouse, you don't use your estate tax exemption and instead increase your spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies. Plus, it defers the tough decisions about the distribution of your assets until your spouse's death.

9. There are two easy ways to give gifts tax-free and reduce your estate. You may give up to $13,000 a year to an individual -- or $26,000 (2011) if you're married and giving the gift with your spouse. You may also pay an unlimited amount of medical and education bills for someone if you pay the expenses directly to the institutions where they were incurred.

10. There are ways to give charitable gifts that keep on giving. If you donate to a charitable gift fund or to a community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.

There obviously is a lot more to know about estate plans and trusts. Contact us or call us at (757) 599-9111 to learn more strategies and suggestions and again, we can help you locate an experienced attorney to help.

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