What Is Included In My Estate Plan?
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Transcript of What Is Included In My Estate Plan?
What Is Included in My Estate Plan in Connecticut? www.preserveyourestate.net 1
WHAT IS INCLUDED IN MY
ESTATE PLAN? “When people ask about the components that would comprise
an estate plan, they may not understand the fact that every case is different. There is no universal, one-size-fits-all estate
plan that would be ideal for every person.”
BARRY D.HOROWITZ Connecticut Estate Planning Attorney
What Is Included in My Estate Plan in Connecticut? www.preserveyourestate.net 2
When people ask about the components that would comprise an estate
plan, they may not understand the fact that every case is different. There is
no universal, one-size-fits-all estate plan that would be ideal for every
person. At the same time, there is a certain basic structure. In this paper,
we will dissect the structure, and we will drill down a bit further along the
way to examine some of the specific circumstances that can require the
implementation of more advanced estate planning techniques.
TRANSFERRING ASSETS
Clearly, when you are planning your estate, you facilitate asset transfers
that will take place after you pass away. To many, this will equate to the
creation of a last will.
What Is Included in My Estate Plan? www.preserveyourestate.net 3
Under very simple
circumstances, a will could
suffice, but there are some
things that you should know
about last wills. For one, you
would be leaving lump sum
inheritances to the heirs. If you
have concerns about loved ones
spending their inheritances too quickly, this may not be a very appealing
arrangement.
Plus, a will must be admitted to probate after you pass away. This is a legal
process. The executor or personal representative actually handles the
business of the estate, but the overall administration of the estate is
supervised by the probate court.
Probate is not inherently negative, and it is in place to provide oversight
and protections. However, it is not always completely positive for the
rightful heirs to the estate. They cannot receive their inheritances while the
process is underway, and it is time-consuming. The best case scenario
would be around nine months to a year, and complex cases can take longer.
There are also expenses that accumulate during probate, and these costs
reduce the amount of the inheritances that will be going to the heirs to the
estate.
What Is Included in My Estate Plan? www.preserveyourestate.net 4
People who want to avoid probate and/or include spendthrift provisions
often use revocable living trusts. When you convey assets into a revocable
living trust, you can include spendthrift provisions. The trustee would
follow these instructions after you pass away.
Distributions to the beneficiaries would not be subject to the probate
process, so the distributions to the beneficiaries could typically take place in
a more timely manner.
A will or a revocable living trust would be suitable for many, but in some
instances, there are better options. For example, high net worth individuals
can be exposed to estate taxes. There is a federal estate tax, and here in
Connecticut where we practice law, there is a state-level estate tax.
What Is Included in My Estate Plan? www.preserveyourestate.net 5
People who are faced with estate tax exposure can implement estate tax
efficiency strategies. Irrevocable trusts of various kinds are often used for
estate tax efficiency purposes.
There are also trusts that can be used to support people with special needs
without impacting need-based
government benefits like
Medicaid and Supplemental
Security Income.
Asset protection trusts are
available to people who are
concerned about lawsuits, and
there are charitable trusts that
can provide benefits under
certain circumstances as well.
The point is, you have options when it comes to asset transfers. You should
certainly discuss them with a licensed estate planning attorney before you
make any decisions.
END OF LIFE PLANNING
Taking care of the things that will happen after you pass away is a big part
of the equation, but you should also plan for the latter stages of your life.
Your estate plan should include a living will. With this type of will, you state
your wishes regarding the implementation of life-sustaining measures.
What Is Included in My Estate Plan? www.preserveyourestate.net 6
The plan can also include durable powers of attorney. With these
documents, you name agents to make decisions on your behalf in the event
of your incapacitation.
SUMMARY
The probate court handles estate matters. Under many circumstances, the
court will supervise when an estate is being administered.
However, there are some circumstances that would allow for asset
distributions outside of probate. Property held in joint tenancy would not
be subject to the process, and assets in a payable on death account would be
transferred outside of probate.
Life insurance proceeds can be distributed without probate court
involvement, and assets in a living trust could also be transferred free of
probate.
To learn more about probate and how you may be able to avoid it, schedule
a consultation with a licensed estate planning attorney.
REFERENCES
American Bar Association http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/estate_planning_faq.html Mayo Clinic http://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/art-20046303
What Is Included in My Estate Plan? www.preserveyourestate.net 7
About the Author
Barry D. Horowitz
Barry D. Horowitz is a founding partner in the law firm of
Nirenstein, Horowitz & Associates, P.C. He received his
diploma from the Loomis Chaffee School and his Bachelor
of Arts from Bennington College, where he dual majored
in philosophy and music.
Mr. Horowitz was awarded his Juris Doctor degree with
honors from the University of Connecticut School of Law.
While attending law school, Mr. Horowitz received the
American Jurisprudence Award in Legal Ethics and the
Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New
York University School of Law where he received a Post Doctorate Law Degree in
Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of
Connecticut and the United States District Court. He is a member of the Hartford
County Bar Association, a charter member of the American Academy of Estate Planning
Attorneys, and has recently received the American Academy Award. Mr. Horowitz is
also an active member of the Connecticut Bar Association where he is a member of the
Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics
Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he
has earned a reputation as a dynamic and entertaining speaker. He also has recently
published a book entitled “Guiding Those Left Behind in Connecticut.”
Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD WESTPORT Gothic Park 191 Post Road West 43 Woodland St., Suite 520 Westport, CT 06880 Hartford, CT 06105 Phone: 203-221-2617 Phone: (860) 548-1000