CHAPTER 1

What Is Estate Planning?

It's More Than Money

Estate planning is people: spouses, children, grandchildren, favorite familymembers, charities, and close friends; their security and prosperity withoutyou. It is state and federal taxes: income, death, and gift. It is lawyers,accountants, insurance people, banks, and financial planners. It is society'srules along with the red tape and courts of law that accompany those rules. Itis a world of advisors busily accomplishing things that most people do notunderstand. It is time and money. It is protecting and enhancing your estatefrom an uncertain future.

Estate planning takes time: a little now or a lot later; time to identify andaccomplish goals that are personally important; or time to react to a host ofexternal forces that may have their own interests rather than those of yourloved ones.

Estate planning involves money, business, and finance. It involves dollars, lotsof dollars, to create and maintain a lifestyle for you and your family while youare alive, and for your loved ones after your death. It involves the sacrificeof dollars to purchase life insurance or to invest in a portfolio, in lieu ofpersonal indulgences, with the sincere belief that you are creating security foryou and the people and causes that matter to you.

Estate planning is human ambition and the fulfillment of that ambition byacquiring and holding property. It is a life statement of commitment to others,while maintaining a lifestyle that is comfortable for you.

Estate planning is living planning. It is your attempt to use your resources tocreate an environment for yourself and others that will be sufficient for youand extend beyond your life. It is the ability to share and control your successduring life and after death.

We always ask our clients, "What do you want done with your property and lifeinsurance after you're gone?" The responses have been different, but they allcontained thoughts that could be summarized as follows:

I would like to give my property to whom I want, in precisely the way I want.Further, I wish my beneficiaries to receive my property when I wish them toreceive it.

But, and this is very important to me, I want to save every last tax dollar,both state and federal, in accomplishing my objectives. Oh yes, I also want toavoid, or at the least reduce, attorneys' fees and court costs.

Finally, I don't want myself or my family involved in a lot of red tape thatprevents my objectives from being accomplished quickly.

You probably know what you want to do with your property both during life and ondeath. You are sensitive to the red tape imposed by society's rules. You needprofessional help in accomplishing your planning objectives.

You are unique; therefore, planning for your estate must be unique. Planning, tobe good, must fit you; it must be comfortable, like a favorite pair of shoes.You must understand the estate planning process, for without understanding therecan be no comfort. Planning without understanding results more often than not inuncertainty and anxiety.

Our main objective is to assist you in understanding the rules, take the voodooout of planning, and replace it with knowledge and comfort. In short, we hope toexpand your planning horizons.

Your understanding is our mandate. With the comfort of knowledge, you should beable to confidently seek out the professional advisors and products and servicesyou need. You should have the ability to communicate your goals and objectivesto your advisors. On completing this book you should have a good grasp of theestate planning process and the techniques it utilizes. You should be able todiscern between the knowledgeable professional and the not-so-knowledgeableprofessional. We hope to give you enough understanding of the estate planningprocess to enable you to participate in a meaningful dialogue with your advisorsin accomplishing your estate planning objectives.

We have heard the question many times: "Why do today what I can put off untiltomorrow?" In estate planning, tomorrow may instantly become today. None of uscan predict the timing of our own deaths with certainty. Death sneaks up on mostof us and respects no time parameter. Statistically, there may be a tomorrow,but don't plan on it! Planning now is mandatory.

Estate planning is a process that begins within your life and can continue farafter death. It is not unique or indigenous to any economic class. Its audienceis America, and its players are Americans. How often we have heard, "Estateplanning for me? Heavens, I don't need an estate plan! I have so little."Really? No loved ones, no disposition toward a favorite family member, closefriend, or...