Estate Planning

According to Caring.com’s 2023 Wills and Estate Planning Study, while a majority of Americans feel estate planning is important, only 33% of U.S. adults have official end-of-life plans. As a financial planning firm with more than 40 years of experience to speak from, we here at Asset Advisory Services believe everyone should have an estate plan in place — and the sooner, the better.

Life is rarely what you’d call ‘predictable,’ but this is especially true in recent years. High inflation and a slew of other unexpected turns mean that now more than ever, it’s impossible to know what the future holds.

That’s why we believe now is the best time to start taking stock of your estate and planning for the future. Or, if you already have an estate plan, this is a great moment to re-evaluate and make any necessary adjustments.

What is Estate Planning and Why is It Important?

Estate planning is the process of creating official documents that outline how your assets will be maintained, distributed, and overseen after you pass away. You might think this sounds similar to a will, and you’re right – a last will and testament is a very simple legal document for passing on properties to beneficiaries after your death.

However, a will is far from the only way to plan your estate.

Depending on your assets, it may not even be the best way to plan your estate. Other options include various types of trusts and family foundations, which work well for more complex/diverse asset distribution.

Regardless of which type of documents work best for you, estate planning is important for many reasons:

Pass On your assets to the people you choose.

Minimizing various taxes your heirs will have to pay.

It can allow someone to care for your assets in the event you become disabled before your death.

Enjoying the benefits of your assets during your lifetime.

Minimizing any risks or uncertainties in the event of your untimely death.

Minimizing the confusion and overwhelm that would happen if you died without an estate plan in place.

What Happens if I Die Without a Will or Estate Plan in Place?

If you die without a will or estate plan in place, the specific fallout your family will have to deal with depends on the state you’re in — but no matter what, it will almost definitely throw your loved ones into a deeper state of overwhelm and trauma.

When a person dies without a will, their assets automatically go through ‘intestate succession.’ ‘Intestate’ means when someone dies without having a legal will in place. And when this happens, a state probate court gets to decide how your assets will be distributed.

This is rarely a smooth or satisfying process. The court will usually establish a hierarchy, placing spouses and closer relatives near the front of the line for receiving assets. Your loved ones don’t get much (if any) say in who gets what, or even who gets to be the executor of the estate.

All in all, dying without a will or estate plan in place is, unfortunately, almost certain to cause additional strife and stress for the people you care about most. Going through the process of estate planning allows you to make these decisions. You can also update things over the years as your family and/or assets grow.

Our Approach to Estate Planning

With a combined 75 years of experience with financial advising and estate planning, the Asset Advisory Services team has the knowledge, attention to detail, and credentials to help you establish the appropriate arrangement to continue your legacy.

While working with you to incorporate your estate plan into your overall financial plan, we’ll discuss the relevant details and options available to you. Our approach starts with four cornerstones to give you a strong foundation, and then we customize it for your exact needs throughout the process.

Asset Advisory Services does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Timing Your Wealth Transfer Correctly

Did you know there are “good” and “bad” times for your wealth transfer when it comes to estate planning?

In addition to timing, there are several details related to the transfer process itself – like choosing the right people and taking steps to help ensure the lowest possible cost.

A common example is family drama, especially when business is involved. One reason you’re pursuing estate planning is to minimize disruptions to operations – and revenue – upon your death. But if someone feels slighted or short-changed, hurt feelings can quickly cause very impactful issues in your business and its profitability.

When you work with Asset Advisory Services, we’ll explain how having both a will and a living trust can help plan so this nightmare scenario (or any other potential hurdles you may be facing) won’t come to pass.

Minimizing Taxes

While taxes are always going to be part of life, there are ways to minimize their impact on your estate. Paying special attention to this is particularly crucial with estate planning because there are so many kinds of taxes you may have to pay The biggest ones to know include the following:

Income taxes
Gift taxes
Estate taxes
Generation-skipping transfer tax
Capital gains tax

There can potentially be additional taxes to consider, depending on things like your state of residence and whether your spouse is a non-U.S. citizen. But keep in mind; we’ll also discuss leveraging charitable bequest tax benefits and other options with the goal of making your estate planning as tax efficient as possible.

Protecting Assets from Creditors and Reducing Potential Exposure

Much of estate planning focuses on your family, loved ones, and those who you wish to benefit from your estate. But we’ll also need to consider the potential impacts of others and the threats they may pose. Things like lawsuits, business liabilities, and even major family disputes can all diminish the legacy you’ve spent so long building.

So, we also focus on protecting your assets and reducing potential exposure as much as possible. This includes helping you get an awareness of any risks you face, implementing strategies like diversifying investments and establishing trusts that aim to reduce that risk, and doing anything we can now to help simplify asset distribution down the road.

In our 40+ years of serving individuals and couples in need of estate planning, we’ve found that everyone’s needs are different. But no matter what yours are, the Asset Advisory Services team has the knowledge, precision, and experience to help you protect your legacy – both now and in the future.

Charitable Giving to Benefit the Community and Your Legacy

Charitable giving can net you some noteworthy tax benefits – but giving back goes so much further than that. First, it’s possible to include charitable giving in your estate plan. There are quite a few ways to do so, including the following:

Bequests: which let you specify portions of your assets or set dollar amounts to charitable organizations.
Charitable trusts: which give income to your beneficiaries for a set period, then give the remaining assets to charity. (You can also establish a charitable trust which does the opposite, giving to a charity first, and then to a non-charitable beneficiary).
Endowments: for a specific cause or organization, which provide principal and then indefinite income for support.

These are just a few examples. While we collaborate on your estate planning, we’ll walk you through the various arrangements based on what type of charitable giving you’re interested in.

How Can I Help Ensure Continuity and Preservation of Family Wealth Across Generations?

We believe the best way to help ensure continuity and preservation of family wealth across generations is with a thorough, well-thought-out, and frequently updated estate plan in coordination with your attorney. At Asset Advisory Services, we believe that’s exactly what we’ve excelled at for more than four decades.

Estate planning is rarely a simple process. Even if your family gets along swimmingly with little to no tension, family drama is just one of many complications that can arise while planning your estate.

There are so many other things to consider, like different types of trusts and their benefits, managing assets in multiple jurisdictions, and how to pass on intangible assets — just to name a few. Trying to familiarize yourself with these intricate details while minimizing estate taxes is a tall order, to say the least.

Focused on Your Bigger Picture

Asset Advisory Services helps cut through the chaos by concentrating on your family’s most meaningful goals. Let’s start today.

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