Family and Estate

Estate Planning

Don't just build an estate for your family - preserve it!

Estate planning is very personal because it involves protecting assets for your family that you have spent a lifetime accumulating. It is essential to plan now. Tomorrow may be too late. The future of your family is much too important to leave for the laws of your state to decide.

Items to consider in developing your estate plan or updating your current plan:

• Do you have a will?
• Are the family assets owned by husband, wife and/or joint?
• Have you named a guardian to raise your minor children?
• Are you comfortable with your current executor (personal representative) and trustees?
• Do you have a family-owned business?
• Do you own life insurance on yourself?
• Do you have a retirement plan (profit sharing, 401(k), IRA, etc.)? Who is your beneficiary?
• Do you have potential inheritances from parents and/or grandparents?
• Do you have a child with special needs?
  At what age should your children receive their inheritance?
• Have you made any substantial gifts?
• Should you be making gifts to reduce your estate?

Need for a will / documents

Most people believe wills are only for the rich. However, the will is a very important part of any estate plan since it is the primary document for transferring your wealth upon death. If you die without a will (intestate),the disposition of your property will be controlled by state law, thus making the settlement of the estate more troublesome and costly for your family. Keep in mind that there are many critical elements of an effective will, which should be discussed thoroughly with your advisors. Other documents that can be used to complement your estate plan include:

• Durable Power of Attorney
• Living Trust / Revocable Trust
• Charitable Trust
• Children's Trust
• Advanced Directive for Healthcare
• Irrevocable Insurance Trust
• Qualified Personal Residence Trust (QPRT)
• Family Limited Partnership or LLC

Closely-held family business

The family-owned business is often the most valuable asset in your estate, yet two out of three family-owned businesses don't survive the first generation due to poor planning. There are many strategies for succession planning that can offer maximum tax benefits and future success of your business. The Warren Averett Estate & Family Services Division is experienced in helping family businesses plan for the future and successfully move the business to the next generation.

The role of life insurance in your estate plan

Most clients are not aware that insurance owned by the insured can be included as an asset of the estate. Effective planning could include an Irrevocable Life Insurance Trust to own the insurance. This technique may remove this asset from the estate of the insured. Estates are often cash poor, and insurance may be the only solution to liquidity problems. Insurance may be used in an estate for the following reasons:

• Provide cash flow
• Provide liquidity to maintain the lifestyle of the family
• Replace assets that may be used in charitable giving
• Provide available cash for an estate which has numerous debts
• Provide liquidity necessary to pay estate tax

Planning for effective use of retirement plan benefits

Estate planning for your retirement plan benefits raises several complicated issues and requires many complex decisions. The choices you make can have estate tax and income tax consequences. There are several important items to be considered. Below are just a few:

• Have you planned for required distributions at age 70 1/2?
• What elections are available to you in taking out distributions?
• Who should be your beneficiary?
• Do you want to defer taking payments as long as possible?
• When are you planning to retire?