ESTATE PLANNING 101

Estate planning is one of the most important steps a person can take to make sure that their final property and health care wishes are honored and that loved ones are provided for in their absence. Though often overlooked or put off in favor of more immediate concerns, a comprehensive estate plan can resolve a number of legal questions that arise whenever anyone dies: What is the state of their financial affairs? What real and personal property did the person own? Who gets what? Does a personal guardian need to be appointed to care for minor children? How much tax will need to be paid in order to transfer property ownership? What funeral arrangements are appropriate?

What is the definition of Estate?

An "estate" consists of all property owned by a person at the time of his/her death, including:

• Real estate
• Bank accounts
• Stocks and other securities
• Life insurance policies
• Personal property, such as automobiles, jewelry, and artwork

How can an estate plan help?

Regardless of age or the size and complexity of one's estate, an estate plan can accomplish the following:
• Identify the family members and other loved ones that should receive the property after one's death
• Ensure that property will be transferred to those identified as quickly and with as few legal hurdles as possible
• Minimize the amount of taxes that will need to be paid in order for the property to pass to others
• Avoid time and costs associated with the probate process by utilizing estate planning devices like living trusts and "payable on death" bank accounts
• Dictate the kinds of life-prolonging medical care one should receive should he/she not be able to make their wishes known
• Set forth the preferred funeral arrangements and how related expenses are to be paid

Understanding the estate plan options that are right for an individual and their family can be a complex undertaking. An experienced estate planning attorney can explain all options available in meeting estate planning goals and fulfilling the needs of loved ones -- whether revising an existing will or creating a comprehensive estate plan from scratch.

Mr. Koch may be reached directly at jkoch@rubino.com or by calling 301.564.3636. For more information about Rubino & McGeehin, please visit http://www.rubino.com/.