Estate Planning: What You Need to Know

Believe it or not, you have an estate. Virtually everybody does, no matter how extravagant or modest. Your estate is comprised of everything you own: your home, car, bank accounts, stocks and securities, personal possessions – everything.

When you pass away, you want to make sure that your estate is distributed to the people you care about most. That’s where estate planning comes in.

If you are new to the phrase estate planning, don’t worry. The financial professionals at American Investment Planners, LLC are here to tell you everything you need to know…

What is estate planning?

Estate planning is the process of legally arranging for the management and distribution of your assets upon death or disability.

Why do I need an estate plan?

Regardless of your age or the quality of your estate, you should have an estate plan for the following reasons:

• Know that your wishes will be carried out, and your assets will go your intended recipients.
• Maintain your privacy. If you do not have an estate plan, your assets can become public information in probate court.
• Protect yourself in the event of disability. If you do not choose who is in control of your care and assets, you may be appointed a legal guardian who might not act in your best interest.
• Minimize taxes. If you do not carefully plan, a significant portion of your money could be lost to state or federal estate taxes.

What is involved in an estate plan?

Preparing an estate plan is much more complex than listing out who gets what in the event of your death. Some of the major tasks of estate planning include:

• Creating a will.
• Naming an executor to oversee the terms of your will.
• Establishing a guardian for living dependents.
• Designating the beneficiaries on your various insurance and retirement plans.
• Limiting taxes by setting up trust accounts.
• Outline personal care instructions in the event of disability.
• Setting up funeral arrangements.

How can I start the estate planning process?

As you can tell, estate planning is a tall task. In order to ensure that everything is properly taken care of, it is recommended to draft your estate plan under the advisement of a professional estate planner.

Ready to sit down and start developing your estate plan? The professionals at American Investment Planners, LLC are here to help. To schedule an appointment with one of our estate planners, please call (516) 932-5130, or email info@americaninvestmentplanners.com.