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Why You Should Have A Will And Estate Plan

If you die without a will or other estate plan, state statutes will control and require division of your estate between your spouse and children. The only way to be certain that your assets will go to the correct beneficiaries is to have a Will or other properly drawn estate plan documents. If yours is a nontraditional family, such as single individuals living together, and your goals include providing a benefit at your death to an unrelated person, the only way to accomplish this is with a properly prepared estate plan.

A properly planned estate can avoid probate administration of your estate for your heirs. Even modest estates can benefit from the use of trusts to eliminate the time and expense of a probate administration. A properly planned estate can avoid or reduce federal estate taxes on your estate through the use of trusts established during your life or in your Will. Subject to a current federal exemption of $1,500,000 exemption and a state exemption of $800,000, all assets of your estate are subject to estate tax. Federal estate tax brackets begin at 37% and rise rapidly to 48%. Minnesota state estate tax may be 10% or more of the non-exempt value of your estate. With the proper use of gifts during your lifetime, that part of your estate subject to estate tax can be reduced even further. Using the annual gift tax exclusion, a couple can give up to $22,000 per person per year.

Planning your estate can be a remarkably simple process if you are working with the right estate planning professional. It begins with identifying your heirs, identifying your assets and liabilities and, finally, determining how and when your heirs will receive a benefit from your estate. Most estate planning professionals will provide you with a questionnaire to help guide you through the information gathering process. If you would like a free questionnaire, or for more information about Wills and estate planning, please contact one of our experienced estate planning attorneys by calling us at 612.339.4295.

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