Many people think that estate planning is simply a way to distribute assets after death and protect them against the Internal Revenue Service. While this is part of it, a well-designed and properly implemented estate plan can help you accomplish much more. In essence, it is about planning for life, not just planning for what happens after you are gone. An estate plan should help ensure the financial, emotional and physical well-being of you, your spouse and the people you love for years to come. It should take into account how you will be cared for in the event of serious illness or incapacity. It should give you complete control over your financial and personal affairs. And it must allow you to give what you want, when you want, to the people you want.
Another misconception about estate planning is that it is only for the very rich. In fact, every family can benefit from an estate plan. Even a basic plan can prevent the State of Hawaii or the IRS from determining how your assets will be distributed after you pass away, streamline the distribution process, and ensure your wishes are carried out. It can also give you control over your financial and healthcare decisions if you become incapacitated. Without a plan, someone you might not want to make decisions for you could petition the court for control over your finances and medical care. Avoiding this will benefit both you and your loved ones.
While estate planning can benefit any family, it is particularly important for families with significant estates. Why? Wealthy families have more to lose if they do not have a plan. They also have a lot to gain.
If you are wealthy, you must concern yourself with issues such as:
Your children depend on you. And if something happens to you, their well-being could very well depend on your estate plan. Without a properly designed and implemented plan in place, your children could:
A trust is not based on how much money or assets you have, rather it’s based upon what your wishes are with regard to how you want to leave your estate. A trust is a great way to avoid probate when you pass away. However it’s not the only way. Trusts work especially well when our clients want to protect their assets in case their children get sued or divorced, want to ensure their spouse can’t change their wishes after they pass away, or have specific wishes for how their children should manage the family property.
Estate planning is the process of preparing for the management and distribution of your assets during your life and after death. It includes planning for incapacity, making financial and healthcare decisions, and ensuring your loved ones are cared for according to your wishes.
Our most basic estate planning includes:
Additionally, we often make revocable living trusts and wills for our clients.
Wealthy families need estate planning to protect their assets, reduce taxes, keep their affairs private, and ensure their heirs are responsible enough to handle their inheritance. Estate planning can also help ensure their legacy endures.
Keiki Protection Planning is a set of legal instructions and documents designed to ensure your children are cared for according to your wishes in the event of your death while they are still minors. It allows you to designate guardians for your children, preventing them from being taken into custody by Child Welfare Services or someone you wouldn’t choose.
Without a proper estate plan, your children could be placed under the care of someone you don’t want, face a lengthy custody battle, lose assets due to court costs, or be vulnerable to mismanagement of their inheritance when they reach adulthood.
Estate planning for minor children ensures that:
