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Legally Speaking

The first indispensable step in developing an effective estate plan is to decide exactly what you want to accomplish. Who do you want to receive the assets you have accumulated during your life? Which family members or friends will need your assistance? Do you want to defer your gift to someone until a later time? Do you want to transfer during your life or withhold all until your death? Reflect on all the things you would like to accomplish with the fruits of your lifetime of effort. You may find that trusts and other estate planning techniques permit you to accomplish all or most of your objectives.

The second step is to determine exactly what properties you own and how they will be distributed at your death. Many properties will probably be transferred by Will. But other properties may be transferred by contractual beneficiary designations, including if in trust. Property held “with rights of survivorship” will pass to the surviving joint owner at death. If you live in a community property state such as Wisconsin, properties may be unexpectedly owned one-half by you and one-half by your spouse even though only titled in one name. A Will may not effectively accomplish what you desire because the Will only applies after all of these other provisions are applied.

After you have inventoried your estate and reflected on your personal objectives, consider how possible probate costs and delays could affect your beneficiaries. Consider, too, whether trusts should be created for certain beneficiaries and whether you (and they) would be best served by making gifts during your life, rather than at your death – for example to preserve as much as possible if you do live in an assisted living facility for some period before your death.

If your estate consists of closely held business interests or other properties without liquidity, or if your estate is extensive, you should explore other techniques including some for minimizing or avoiding taxes, both estate or death taxes, as well as income and capital gain tax.

Your estate plan should also express your carefully thought out funeral, burial or cremation wishes. And it should include arrangements that will help ensure your financial well-being in the event of your later incapacity.

Last, but not least, your plan should include your thoughts and directions concerning the medical care you want to receive if there is a time when you are incapable of making those decisions yourself.

This column is based on general legal principles of Wisconsin law, is for informational purposes only, and is not intended to provide legal advice. Each legal matter must be judged on the merits of its unique circumstances. If you have a legal problem, consult an attorney.

Mark A. Jinkins is an attorney at Pinkert Law Firm LLP with offices in Sturgeon Bay and Sister Bay. 920.743.6505 or 920.854.2616.