To love what you do and feel that it matters--how could anything be more fun?

― Katherine Graham

The New World of Estate Planning: Part 2

Wealth Planning has 3 broad purposes: 1. Wealth Creation. 2. Wealth Preservation. 3. Wealth Distribution.

Wealth Creation includes opportunity spotting, investment planning, and life insurance planning.

Wealth Preservation includes the following: Making sure assets will last for the lifetime of the client and spouse (into the 90s & beyond), minimizing income tax liability, deferred compensation planning, asset protection/divorce protection planning for client(s), and for children, grandchildren, and other loved ones.

You will note that estate tax planning is not listed. Why? The vast majority of American will not have to focus as much on estate tax planning as in the past.

Wealth Distribution includes empowering beneficiaries and empowering charitable causes.

Certain planning objectives will not change:

• Maintenance and solidification of control over affairs
• Planning for disability and incompetency-protecting physical & financial health
• Probate avoidance
• Business succession planning
• Planning for marital and other dissolutions

Planning in the new world will have new focus on the following objectives:

• Assurance of the continuance of lifestyle
• Income tax reduction and avoidance
• Retirement planning
• Asset protection & divorce protection planning AKA Predator protection planning
• Planning for minor children, grandchildren, and other loved ones, including guardianship & the payment of education expenses
• Planning for spendthrift children
• Planning to pass “values” as well as “value”
• Planning for the care of parents and other loved ones in need
• Planning to avoid state estate & income taxes AKA “Domicile Counselling”
• Planning for clients with real estate in more than one state
• Planning for the possible decrease in the estate, gift, and GST tax exemptions and/or increase in the transfer tax rates

Planning mastery comes not only from knowing how to use tools in the tool box, it also comes from knowing which combination of tools to use in each case. Our new world has us looking at certain planning tools in new ways and we have some new tools too. This is where the collaborative planning team can really shine.

As we look to the future of wealth planning, communication, flexibility, and timely implementation will more than ever be the keys to success.

This information was prepared by Lena Barnett & Associates, LLC and is intended only to provide general information.
It is neither offered nor intended for use as legal advice, nor is it a substitute for a consultation with an attorney.

© 2015 Lena Barnett & Associates, L.L.C. All Rights Reserved


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