Estate planning means more than avoiding tax bite
By Eileen Alt Powell
NEW YORK — Families have a lot of misconceptions about estate planning.
Some think it's something only old people need to do. Others think it's all about avoiding taxes, or that it's only about money.
But proper estate planning — while it can involve all those things — is much more. It's about who gets your possessions when you die. It's about who raises your children if they're still minors. It's about who makes critical medical decisions if you're incapacitated.
"Estate planning is important to anybody who cares about what happens after they die, irrespective of wealth or age," said David Ness, president of the Raymond James Trust Co., which is headquartered in St. Petersburg, Fla.
But many Americans apparently can't get over the emotions associated with death, and that stops them from putting their estates in order.
A recent Gallup Poll found that half of American adults do not have a will, the legal document in which you name the people who are to receive your property after you die. And nearly 60 percent of Americans haven't prepared a living will, which spells out the medical care you do or don't want to receive if you become incapacitated by an accident or terminal illness.
People who don't have a lot of assets or prefer a do-it-yourself approach will find a number of books, software programs and Web sites to help. For example, Quicken WillMaker Plus and Kiplinger's WILLPower kits help consumers through the process of document preparation. And the American Bar Association's "Tool Kit for Health Care Advance Planning" at www.abanet .org/aging and the ARRP's "Resources on End of Life, Living Wills, Dying and Death" at www.aarp.org provide guidance on healthcare directives.
But most people would be well-advised to seek the help of attorneys who specialize in estate preparation, said Raymond James Trust's Ness.
"In life, there are two things you should never scrimp on — a parachute and your estate planning documents," he said.
Ness recommends people start the process by answering some basic questions: What do I own? Do I want to pass on something like a vacation home to the kids, or would I rather sell it and give them the proceeds? Do I want to give it to them outright or, perhaps, via a trust arrangement?
HOW TO DEAL WITH PROPERTY
Associated Press
Experts say most people need two documents to deal with money and other property:
People also should consider creating two healthcare directives, experts say:
