Estate Planning in St. Louis, Kansas City, MO and Southern Illinois

Estate planning arranges for the transfer of an individual's property after death and may involve a will and/or trust, or the application of state intestacy laws.

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What factors should you consider when planning your estate?

When deciding the assets you want to leave for your beneficiaries, consider their age, financial status, and gift or estate tax. An accurate evaluation of the person's financial situation is the foundation of a well-rounded estate plan. Collect documents related to your investments and every asset that you own.

(Do not publish) A "5 by 5 Power in Trust" is a common clause in many trusts that allows the trust's beneficiary to make certain withdrawals. Also also called a "5 by 5 Clause," it gives the beneficiary the ability to withdraw the greater of: $5,000 or. 5% of the trust's fair market value (FMV) from the trust each year.

A good estate plan is comprised of five key elements: Will, Trust(s), Power of Attorney, Health Care or Medical Directive and Beneficiary Designation. A will is a legally binding document that directs who will receive your property and assets after your death.

1. Will.
2. Revocable Trust.
3. Financial Power of Attorney.
4. Durable Power of Attorney for Healthcare.

Simply put, an estate plan is a broader plan of action for your assets that may apply during your life as well as after your death. A will, on the other hand, dictates where your assets will go after you die, who will be the guardian of your children and more.

This questionnaire is designed to help gather the information required to structure an estate plan that best accomplishes your goals.

HEMS is an acronym that stands for health, education, maintenance and support. When assets are distributed to the beneficiaries of a trust with a HEMS provision, the money can only be used for specific needs tied to the beneficiaries' health, education or living expenses.

• Last Will & Testament. Your Will governs the distribution of assets which are solely in your name, through the legal process known as probate. 
• Durable Power of Attorney.
• Advance Health Care Directive.

In summary, a Trust is to manage and distribute assets while you are alive, and a Will is to manage and distribute your estate when you pass away. Both are important when considering how to plan your estate and ensure that your loved one's future is secure and protected.