Estate planning consists of several tools that are important for Georgia parents who are looking to protect the well-being of their children. Parents can provide protection from the possibility of incapacity or death by ensuring assets are used for their children's benefit. In many cases, this situation will call for the use of a revocable living trust as part of the estate planning documents.
Gibbs Financial Group is sponsoring a free "Estate Planning Essentials" Workshop at the Atlanta Athletic Club, 1930 Bobby jones Dr., Johns Creek, on APRIL 13 at 10:00 AM - 12:00 PM. To sign up contact Gibbs Financial Group 770-753-6359. Attorney James Miskell of the Estate Planning Law Group of Georgia will be speaking.
One difficult aspect of estate planning for some Georgia residents may be choosing who should fulfill various roles. Positions such as executor, trustee and guardian all require different skill sets, and in some cases, a person might have chosen loved ones or family members who might not be suitable for the role. An attorney might be able to help a client make the right choices.
Georgia residents may have heard about Donald Trump's plan to repeal the federal estate tax, or, as he calls it, the "death tax." However, individuals with estates valued at $5.49 million or less in 2017 won't have to pay any taxes. Couples may combine their individual exemptions, which means that they wouldn't have to pay federal estate taxes on $10.98 million in assets. There is also no tax when assets are passed from one spouse to another.
Whether you are 25 or 75, the reality is that no one likes to face the end of their mortal lives or think about it on a day-to-day basis. The harsh truth is that it is necessary to prepare no matter how old you are. If you want to have plans in place to distribute your assets, settle your estate and care for yourself and family members once you are unable, then you must have some type of long-term plan in place. As scary as it is to face your own mortality, the right thing to do it to be prepared for anything that comes your way.
Georgia residents may wonder whether they should delay creating an estate plan since tax laws may be changing under the Trump administration. However, there are many benefits to certain estate planning tools, such as irrevocable trusts, that do not depend upon taxes. In particular, irrevocable trusts can protect assets from spouses in the event of a divorce or from creditors. Furthermore, it may be very difficult to predict what may happen with tax laws. There may be a sunset provision that makes it short term, or any changes might be overturned again by another administration.
Estate planning may be uncomfortable for Georgia residents of any age. However, there are basic steps that should be taken to ensure that an estate doesn't get bogged down in legal challenges for months or years. First, it is important for people to calculate their assets and liabilities to determine their net worth and see if any assets will fall outside of probate.
You tried your best as a parent and did all you could to give your children the best in life, but it turns out you really have no control over their decisions when they get older. It can be frustrating and painful as a parent to watch a child turn to drugs, gambling or other destructive behaviors. As you prepare your will or trust and plan for your estate after you die, you may have concerns about your assets and hard-earned money going to a child who may ultimately throw it down the drain. Do you have the option to disinherit your child and leave them out of the will?
Georgia residents might want to include clauses in their estate plan that address the possibility that a beneficiary may die at the same time or shortly after they do. People whose assets are commingled might want to consider a simultaneous death clause. This chooses one person to be considered the one who died first if time of death cannot otherwise be determined. Another tool is the survivorship deferral that addresses the issue of an individual's beneficiary dying shortly after the individual. With this clause in place, the assets would then be distributed as though the beneficiary died first.
No one likes to face their own mortality, but it's important that you are prepared for anything that can happen when it comes to your assets and your financial future. Protecting your assets and your family become vitally important if something happens to you, and a big part of that is choosing an executor who will carry out your wishes. The process doesn't have to be stressful or complex. Although it can initially seem overwhelming, these tips and guidelines can help you to simplify one of the most important decisions you can make in your life.