Estate Planning

• The client must be at least 18 years old and of sound mind.
• The will must be typewritten—either typed or printed out from a computer.
• The will must have at least one substantive provision. 
• The client must appoint at least one executor.

A will is what many people think of when they first consider estate planning. Everyone should have a will, whether or not they make a more extensive estate plan. A will specifies who gets property covered by that document when the client dies. A will can also serve other vital purposes, such as appointing a personal guardian (e.g., for a minor or impaired child). Property left by a will must normally go through probate.

There are four basic options for leaving property to a minor: [1] a custodianship, under the Uniform Transfers to Minors Act, [2] a child’s trust, [3] a family pot trust or [4] a property guardianship

A survivorship period requires that a beneficiary must survive your client by a specified time period to inherit. The purpose of a survivorship period is to ensure that if the beneficiary dies soon after the client, the property will go to the alternate selected, rather than to people the beneficiary chose to inherit his/her property. Survivorship periods are commonly used in wills. Since probate takes months, the client is not tying up property by imposing a short survivorship period—45 to 60 days is common.

Property ownership rules for a married person can be complex. Rules affecting ownership of property acquired during marriage may restrict the right to leave property. There are two systems governing a married couple’s property; the one that applies to your client depends on what state your client lives in. The majority of states follow the common law system where, in general, the owner of the property is the person whose name appears on the ownership document.

Your client’s “estate” includes all the property he/she owns, minus anything owed (assets minus liabilities). The client may find it useful to use a worksheet to make a rough estimate of the dollar value of his/her estate, which can be helpful both for general planning purposes, and to predict whether or not the estate is likely to be liable for estate taxes (doubtful considering the 2013 $5.25 million exemption). The estate will very likely have a different worth upon death, so precise figures are not necessary.

With over 50% of Americans not having a will or trust, there is a strong need for a Certified Estate and Trust Specialist. An estate planning specialist can help a client decide who gets what and when; a trust allows someone to control their estate “from beyond the grave.”