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Bicknell Utah estate planning strategies

Estate Planning - It's Just As Much Life As It Is Death Planning

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The five levels of estate planning is a systematic approach for explaining estate planning in a way that you can easily follow. Which of the five levels you need to complete is based on your particular objectives and circumstances.

Level One: The Basic Plan

The situation for level one planning is that you have no will or living trust in place, or your existing will or living trust is outdated or inadequate. The objectives for this type of planning are to:

reduce or eliminate estate taxes;
avoid the cost, delays and publicity associated with probate in the event of death or incapacity; and
protect heirs from their inability, their disability, their creditors and their predators, including ex-spouses.

To accomplish these objectives, you would use a pour-over will, a revocable living trust that allocates a married person's estate between a credit shelter trust and a marital trust, general powers of attorney for financial matters and durable powers of attorney for health care and living wills.

Level Two: The Irrevocable Life Insurance Trust (ILIT)

The situation for level two planning is that your estate is projected to be greater than the estate-tax exemption. In any event, you can make cash gifts to an ILIT using your $13,000/$26,000 annual gift-tax exclusion per beneficiary.

Level Three: Family Limited Partnerships

The situation for level three planning is that you have a projected estate-tax liability that exceeds the life insurance purchased in level two. If your $1 million gift-tax exemption ($2 million for married couples) is used to make lifetime gifts, the gifted property and all future appreciation and income on that property are removed from your estate.

More people would be willing to make gifts to their children if they could continue to manage the gifted property. A family limited partnership (FLP) or a family limited liability company (FLLC) can play a valuable role in this situation. You would typically be the general partner or manager and in that capacity, continue to manage the FLP or FLLC's assets. You can even take a reasonable management fee for your services as the general partner or manager. Moreover, by gifting FLP or FLLC interests to an ILIT, the FLP or FLLC's income can be used to pay premiums, thereby freeing up your $13,000 / $26,000 annual gift-tax exclusion for other types of gifts.

Level Four: Qualified Personal Residence Trusts and Grantor Retained Annuity Trusts

The situation for level four planning is the additional need to reduce your estate after your $1 million/$2 million gift-tax exemption has been used. Although paying gift taxes is less expensive than paying estate taxes, most people do not want to pay gift taxes. There are several techniques to make substantial gifts to children and grandchildren without paying significant gift taxes.

One technique is a qualified personal residence trust (QPRT). A QPRT allows you to transfer a residence or vacation home to a trust for the benefit of your children, while retaining the right to use the residence for a term of years. By retaining the right to occupy the residence, the value of the remainder interest is reduced, along with the taxable gift.

Another technique is a grantor retained annuity (GRAT). A GRAT is similar to a QPRT. The typical GRAT is funded with income-producing property such as subchapter S stock or FLP or FLLC interests. The GRAT pays you a fixed annuity for a specified term of years. Because of the retained annuity, the gift to the remaindermen (your children) is substantially less than the current value of the property.

Both QPRTs and GRATs can be designed with terms long enough to reduce the value of the remainder interest passing to your children to a nominal amount or even to zero. However, if you do not survive the stated term, the property is included in your estate. Therefore, it is recommended that an ILIT be funded as a "hedge" against your death prior to the end of the stated term.

Level Five: The Zero Estate-Tax Plan

Level five planning is a desire to "disinherit" the IRS. The strategy combines gifts of life insurance with gifts to charity. For example, take a married couple, both age 55, with a $20 million estate. Assume that there is neither growth nor depletion of the assets and that both spouses die in a year when the estate-tax exemption is $3.5 million, and the top estate-tax rate is 45%.

With the typical marital credit shelter trust, when the first spouse dies, $3.5 million is allocated to the credit shelter trust and $16.5 million to the marital trust. No federal estate tax is due. However, at the surviving spouse's death, the estate tax due is $5.85 million. The net result is that the children inherit only $14.15 million.

With the zero estate-tax plan, the ILIT (with generation-skipping provisions) is funded with a $13 million second-to-die life insurance policy. These gifts reduce the estate value to $18 million. In addition, the couple's living trusts each leave $3.5 million (the amount exempt from estate taxes) to their children upon the surviving spouse's death. The balance of their estate ($11 million) passes to a public charity or private foundation-estate-tax free. To summarize, the zero estate-tax plan delivers $20 million (i.e., $13 million from the ILIT and $7 million from the living trusts) to the children instead of $14.15 million; the charity receives $11 million instead of nothing; and the IRS receives nothing, instead of $5.85 million.

In summary, with some advanced planning, it is possible to reduce estate taxes, avoid probate, set forth your wishes, and protect your heirs from creditors, ex-spouses and estate taxes. Remember, every year taxes change so if you need estate tax help, call us today to speak with an estate attorney.

TO THE EXTENT THIS WEBSITE CONTAINS TAX MATTERS, IT IS NOT INTENDED OR WRITTEN TO BE USED AND CANNOT BE USED BY A TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER, ACCORDING TO CIRCULAR 230.

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Beaver County Utah estate planning gifting

Estate Planning: What You Need To Know

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Appropriate estate planning can only be possible with proper appreciation of the major aspects involved in personal finance management process. Efficient estate planning attorney makes it a point realizing these aspects perfectly while making the plan.

Appropriate estate planning involves understanding various aspects of personal finance management well. Multiple aspects of such financial management are involved in the estate planning process. An efficient attorney therefore will always look at these aspects before preparing the estate management. People who are looking for inheritance, insurance and property transfer managements with efficiency will find understanding these aspects extremely useful for the purpose of preparing an all comprehensive estate planning.

Setting goals is extremely essential for preparing the perfect plan. Without the goals clearly determined it may not be possible to prepare plan that would meet all the requirements of the client. Retirement plans are examples of such goal setting. One could plan buying a house for residence after retirement at 25% of the gross income while keeping the residual portion of the income away for future investments, maintenance of the family, and other pursuits. People who are concerned with setting up multiple goals at one time may obtain the assistance of professional expert trust planning attorney that would balance the financial planning with goals set by the client for benefit optimization.

Goals that the client set up for achievement could either be long or short term. In any case setting such financial goals help direct planning. Processes like these involve adequate assessment of the financial and all other aspects of the estate and resources of the estate owner. Experienced and professional estate planning attorney would take care to prepare simplified versions of all the financial statements and legal documents so that there is no room for any confusion in the minds of the clients involved. Ordinarily balance sheets and income statements would be a couple of financial documents that helps the proper assessment of the estate to be planned.

Despite best goal setting and near perfect assessments by the estate lawyer proficient in these deals, best results could only accrue with perfect execution of the plans. One has to be careful about it.

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Beaver City Utah estate planning house

Estate Planning - How to Preserve Your Wealth

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In my estate planning practice, it is not uncommon to meet with a new client who wants an estate plan prepared, but is a bit vague as to what should be included in that plan. Quite frequently, the initial conversation begins with the client saying something like, "I would like a will... or should I have a trust? Do I need anything else?" Actually, those are good questions to begin a discussion.

Most folks recognize that their estate plan should provide for the distribution of their assets upon their death. That, of course, is an essential element of an estate plan, but there is more to consider in a well-designed plan. Prior to meeting with your attorney for the first time you should also be thinking about such things as who you want to handle your affairs should you become incapacitated; whether you would want your doctor to keep you alive should you be near the point of death with little chance of recovery; who you want to have the authority to sign important legal papers for you if you are unavailable; and, who you would want to raise your children if you suddenly die. There is a wide variety of personal circumstances which impact estate planning, but let me offer the following as items you should consider even before you meet with a lawyer to discuss your own estate plan.

Should I have a will or a trust?

This is typically among the first questions posed by clients during an initial meeting. Many are aware that a trust will avoid probate, but that is true only if the trust is properly funded, meaning that all of their assets are transferred into the trust. Not every estate plan needs a trust, however, and it may not be necessary for you to incur the additional cost of having your lawyer prepare a trust, when a will is suitable for your needs. And, contrary to what some folks think, having a trust does not avoid estate taxes.

A trust may be the right choice for you, if it is unlikely that you will acquire more assets in the years ahead. What can often happen, however, is that folks will have a trust established and thereafter acquire new assets that they neglect to place in the trust. Then when they die the assets outside of the trust have to go through probate which defeats the intent of establishing a trust in the first place. So, before deciding upon a trust as the main element of your own estate plan, take some time to consider your future investment plans and major acquisitions.

There are some other advantages to a trust, which might make it the right choice for you. For example, should you become incapacitated, your trustee will be able to step in and manage your assets without having to seek a court appointed conservator. In that sense, a trust document is more all-encompassing and flexible than an ordinary will.

What else should I consider in my estate plan?

Estate planning isn't just about deciding who gets your wealth when you die. It is also about making decisions as to what you want to happen should you become seriously ill or incapacitated.

Every estate plan should include an advance directive, which used to be called a living will. This document allows you to appoint a health care representative to make health care decisions for you, including end of life decisions, when you are unable to do so.

Similarly, we recommend that you give a durable power of attorney to a family member or trusted friend in order to allow your appointed agent to manage your financial and business affairs when you are unavailable or otherwise incapacitated. A durable power of attorney remains in effect so long as you are alive and should provide that it will be effective even in the event of your incapacity.

What about my bank accounts, life insurance and investment accounts?

Careful estate planning should include a review of all of your assets, including checking the beneficiary designations you have listed in your retirement plan and in regard to your investment and bank accounts. With such beneficiary designations, these assets will be transferred outside of the probate process to those persons you have previously designated as beneficiaries on these accounts. It is important that you review your beneficiary designations to ensure that your choice of beneficiaries is in accordance with your current intentions as to disposition of your estate.

A thorough review of your portfolio and consideration of the issues described above before meeting with your estate planning attorney will allow you to realize the maximum benefit from your meeting. It will also help your attorney to focus his or her discussion with you on aspects of the process that are most relevant to your goals and needs.

© Call today for your free initial consultation.

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Bear River Box Elder County Utah estate planning 5 year rule

Estate Planning - Major Aspects of Personal Finance Management

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Appropriate estate planning can only be possible with proper appreciation of the major aspects involved in personal finance management process. Efficient estate planning attorney makes it a point realizing these aspects perfectly while making the plan.

Appropriate estate planning involves understanding various aspects of personal finance management well. Multiple aspects of such financial management are involved in the estate planning process. An efficient attorney therefore will always look at these aspects before preparing the estate management. People who are looking for inheritance, insurance and property transfer managements with efficiency will find understanding these aspects extremely useful for the purpose of preparing an all comprehensive estate planning.

Setting goals is extremely essential for preparing the perfect plan. Without the goals clearly determined it may not be possible to prepare plan that would meet all the requirements of the client. Retirement plans are examples of such goal setting. One could plan buying a house for residence after retirement at 25% of the gross income while keeping the residual portion of the income away for future investments, maintenance of the family, and other pursuits. People who are concerned with setting up multiple goals at one time may obtain the assistance of professional expert trust planning attorney that would balance the financial planning with goals set by the client for benefit optimization.

Goals that the client set up for achievement could either be long or short term. In any case setting such financial goals help direct planning. Processes like these involve adequate assessment of the financial and all other aspects of the estate and resources of the estate owner. Experienced and professional estate planning attorney would take care to prepare simplified versions of all the financial statements and legal documents so that there is no room for any confusion in the minds of the clients involved. Ordinarily balance sheets and income statements would be a couple of financial documents that helps the proper assessment of the estate to be planned.

Despite best goal setting and near perfect assessments by the estate lawyer proficient in these deals, best results could only accrue with perfect execution of the plans. One has to be careful about it.

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Call 1-800-564-2707 today.

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Bear River Utah estate planning attorney fees

Estate Planning: Fun For The Entire Family

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An estate plan is a document consisting of multiple trivial elements such as the living will or healthcare proxy or also known as medical power of attorney and assignment of power of attorney. Some people also include trust into their wills. Once you merge all these things together, you have to get it certified under the legal laws of both the federal and state governments. Basically everyone needs to have a will, to inform the world where you wish to allocate your assets to after you leave the world. In fact, it is the best way to consign guardians for your children.

Those dying without a proper estate planning, having no will to display upon their deaths are known to be dying intestate. However, this implies that your heirs need to struggle through several legal procedures in order to take over the assets. Having a trust does not guarantee the ownership transfer; it is insufficient because you still need a will to be in charge of your trust to inherit them to your beneficiaries. In addition, it is advisable that you discuss the plan with your children to avoid future discord, especially if you know your heirs may come in strong disagreement with one another.

To begin with your estate plan, you have to garner all appropriate information such as insurance policies, investments, real estate or business interests, financial condition, and any retirement savings. Then ponder to yourself several questions like who you wish to assign to the job of handling your financial affairs if you happen to be incapacitated. Then consider whom you intend to inherit your assets to and give thoughts into plotting the responsibility of your medical decisions should you be bedridden and unconscious.

Some people think that having infinite amount of money indicates a good estate planning but this is not always the case. Leaving all your properties and cash to your spouse does not imply it will be exempted from estate tax because you will instead increase his or her taxable estate. Subsequently, if your spouse leaves the money to your children upon his or her death, they will end up paying higher estate taxes. At all cases, having a will is the best item to solve all hassles.

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Ballard Uintah County Utah estate planning at 50

Estate Planning: What You Need To Know

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Here are four key elements of estate planning that can not only help to preserve the value of your estate but also to ensure the efficient administration and disposition of your estate assets.

1. A will is the cornerstone for an estate plan and deals with all matters regarding the final distribution of your estate assets. A will is a legal document that speaks on your behalf upon your demise. If you do not have a will, then the courts will decide the manner in which your estate assets will be distributed - and this may not be in accordance with your wishes.

2. A trust is a legal document that can be designed to address any unique situation that you may have in regard to the distribution of your estate assets. For example, a spendthrift trust can be set up to protect the interests of a beneficiary who is not good at handling money. A trust can be set up for the protection and administration of assets for minor children, a spouse or for any other beneficiary.

Creative use of wills and trusts can not only protect the interests of your heirs, but also can help reduce the impact of taxes and probate fees. An estate planning attorney can help with the proper legal drafting of wills and trusts. But before you engage the services of an attorney, it is highly recommended that you should do the essential ground work first - this will save you hundreds if not thousands of dollars in legal and accounting fees.

3. Your estate executor will need to know the location of your assets and vital documents. If you do not have a proper record of your assets and vital documents, valuable assets can be "lost" during the estate settlement process. For example, there are billions of dollars in unclaimed money currently held by the government waiting to be claimed by the beneficiaries of deceased relatives.

4. It is vitally important to understand that most estates usually comprise of assets that are not readily convertible into cash. For example, real estate, long term financial investments, business interests, rental properties and other assets. In other words, most estate assets are generally illiquid.

Without proper funding arrangements it is highly probable that valuable estate assets may have to be liquidated at fire sale prices in order to pay taxes and other estate settlement expenses. These expenses can easily amount to thousands and even millions of dollars in the case of larger estates. There is a smart way to fund estate settlement expenses without having to liquidate valuable estate assets by the creative use of life insurance.

By implementing the above estate planning strategies you can ensure that all your affairs are properly organized and depending on the size of your estate, you could potentially save thousands if not millions of dollars. Your heirs will be proud and glad that you made all the proper arrangements and that all your affairs were left in excellent order. To learn more on estate planning please check the resource box below.

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Do you want a Free Initial Consultation with an Estate Planning Lawyer?

Call 1-800-564-2707 today.

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Ballard Utah estate planning 5 year rule

Estate Planning - Why Should I Care?

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Estate Planning is not something that everyone wants to think about.  But it's an important thing to consider if you have a significant amount of property or wealth.  Even if you only have a small amount of wealth, you want to make sure that if you pass on, your property goes to the right people in your life.

Without the proper planning this may not happen.  Let's say for example you have no children and have yet to be married.  Let's say also that you spend all of your time working with a children's charity, and that if you did pass on you would want your money to go to this group. 

Without the proper planning, your money could go to your closest surviving family member.  This could be a sister that you don't get along with or a cousin you never knew.  If you know where you want your money to go, then estate planning should be a top priority. 

Nobody likes to think about death.  When you start to think about estate planning, you start to think about how you might die.  It's a sad thing to think about for many people.  But you should try your best to stay strong so that those that you love can get what you would've wanted them to have.

Another way to approach the issue is to do it with an experienced company.  Estate planning companies with experience dealing with this sort of thing can make the process much easier.  They know it's hard to think about these matters, so they make the questioning process as brief as possible for you.  Working with a professional in the field will make the whole process much easier.

You can do some shopping around to find the right company.  Your estate planning choices are some of the most important choices you will have to make in your lifetime.  You want to make sure that you choose the right company to handle them.

It is important to note that the estate planning process doesn't have to take a long time.  You generally know how you would like things to be worked out before you begin the process.  Your estate planner will just help to make your words legally binding, and remind you of issues you might have forgotten.

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Aurora Sevier County Utah estate planning at 50

Estate Planning - Do You Need an Estate Plan?

831(b) captive estate planning

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Here are four key elements of estate planning that can not only help to preserve the value of your estate but also to ensure the efficient administration and disposition of your estate assets.

1. A will is the cornerstone for an estate plan and deals with all matters regarding the final distribution of your estate assets. A will is a legal document that speaks on your behalf upon your demise. If you do not have a will, then the courts will decide the manner in which your estate assets will be distributed - and this may not be in accordance with your wishes.

2. A trust is a legal document that can be designed to address any unique situation that you may have in regard to the distribution of your estate assets. For example, a spendthrift trust can be set up to protect the interests of a beneficiary who is not good at handling money. A trust can be set up for the protection and administration of assets for minor children, a spouse or for any other beneficiary.

Creative use of wills and trusts can not only protect the interests of your heirs, but also can help reduce the impact of taxes and probate fees. An estate planning attorney can help with the proper legal drafting of wills and trusts. But before you engage the services of an attorney, it is highly recommended that you should do the essential ground work first - this will save you hundreds if not thousands of dollars in legal and accounting fees.

3. Your estate executor will need to know the location of your assets and vital documents. If you do not have a proper record of your assets and vital documents, valuable assets can be "lost" during the estate settlement process. For example, there are billions of dollars in unclaimed money currently held by the government waiting to be claimed by the beneficiaries of deceased relatives.

4. It is vitally important to understand that most estates usually comprise of assets that are not readily convertible into cash. For example, real estate, long term financial investments, business interests, rental properties and other assets. In other words, most estate assets are generally illiquid.

Without proper funding arrangements it is highly probable that valuable estate assets may have to be liquidated at fire sale prices in order to pay taxes and other estate settlement expenses. These expenses can easily amount to thousands and even millions of dollars in the case of larger estates. There is a smart way to fund estate settlement expenses without having to liquidate valuable estate assets by the creative use of life insurance.

By implementing the above estate planning strategies you can ensure that all your affairs are properly organized and depending on the size of your estate, you could potentially save thousands if not millions of dollars. Your heirs will be proud and glad that you made all the proper arrangements and that all your affairs were left in excellent order. To learn more on estate planning please check the resource box below.

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Do you want a Free Initial Consultation with an Estate Planning Lawyer?

Call 1-800-564-2707 today.

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Aurora Utah 5 estate planning black holes

Estate Planning Overview, 101

estate planning vehicles

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Appropriate estate planning can only be possible with proper appreciation of the major aspects involved in personal finance management process. Efficient estate planning attorney makes it a point realizing these aspects perfectly while making the plan.

Appropriate estate planning involves understanding various aspects of personal finance management well. Multiple aspects of such financial management are involved in the estate planning process. An efficient attorney therefore will always look at these aspects before preparing the estate management. People who are looking for inheritance, insurance and property transfer managements with efficiency will find understanding these aspects extremely useful for the purpose of preparing an all comprehensive estate planning.

Setting goals is extremely essential for preparing the perfect plan. Without the goals clearly determined it may not be possible to prepare plan that would meet all the requirements of the client. Retirement plans are examples of such goal setting. One could plan buying a house for residence after retirement at 25% of the gross income while keeping the residual portion of the income away for future investments, maintenance of the family, and other pursuits. People who are concerned with setting up multiple goals at one time may obtain the assistance of professional expert trust planning attorney that would balance the financial planning with goals set by the client for benefit optimization.

Goals that the client set up for achievement could either be long or short term. In any case setting such financial goals help direct planning. Processes like these involve adequate assessment of the financial and all other aspects of the estate and resources of the estate owner. Experienced and professional estate planning attorney would take care to prepare simplified versions of all the financial statements and legal documents so that there is no room for any confusion in the minds of the clients involved. Ordinarily balance sheets and income statements would be a couple of financial documents that helps the proper assessment of the estate to be planned.

Despite best goal setting and near perfect assessments by the estate lawyer proficient in these deals, best results could only accrue with perfect execution of the plans. One has to be careful about it.

Go Forward

Do you want a Free Initial Consultation with an Estate Planning Lawyer?

Call 1-800-564-2707 today.

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Antimony Garfield County Utah estate planning 529

Estate Planning - Why Should I Care?

831(b) captive estate planning

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Here are four key elements of estate planning that can not only help to preserve the value of your estate but also to ensure the efficient administration and disposition of your estate assets.

1. A will is the cornerstone for an estate plan and deals with all matters regarding the final distribution of your estate assets. A will is a legal document that speaks on your behalf upon your demise. If you do not have a will, then the courts will decide the manner in which your estate assets will be distributed - and this may not be in accordance with your wishes.

2. A trust is a legal document that can be designed to address any unique situation that you may have in regard to the distribution of your estate assets. For example, a spendthrift trust can be set up to protect the interests of a beneficiary who is not good at handling money. A trust can be set up for the protection and administration of assets for minor children, a spouse or for any other beneficiary.

Creative use of wills and trusts can not only protect the interests of your heirs, but also can help reduce the impact of taxes and probate fees. An estate planning attorney can help with the proper legal drafting of wills and trusts. But before you engage the services of an attorney, it is highly recommended that you should do the essential ground work first - this will save you hundreds if not thousands of dollars in legal and accounting fees.

3. Your estate executor will need to know the location of your assets and vital documents. If you do not have a proper record of your assets and vital documents, valuable assets can be "lost" during the estate settlement process. For example, there are billions of dollars in unclaimed money currently held by the government waiting to be claimed by the beneficiaries of deceased relatives.

4. It is vitally important to understand that most estates usually comprise of assets that are not readily convertible into cash. For example, real estate, long term financial investments, business interests, rental properties and other assets. In other words, most estate assets are generally illiquid.

Without proper funding arrangements it is highly probable that valuable estate assets may have to be liquidated at fire sale prices in order to pay taxes and other estate settlement expenses. These expenses can easily amount to thousands and even millions of dollars in the case of larger estates. There is a smart way to fund estate settlement expenses without having to liquidate valuable estate assets by the creative use of life insurance.

By implementing the above estate planning strategies you can ensure that all your affairs are properly organized and depending on the size of your estate, you could potentially save thousands if not millions of dollars. Your heirs will be proud and glad that you made all the proper arrangements and that all your affairs were left in excellent order. To learn more on estate planning please check the resource box below.

Go Forward

Do you want a Free Initial Consultation with an Estate Planning Lawyer?

Call 1-800-564-2707 today.

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