Wills and trusts are typically the cornerstones of a sound estate plan.  For each family, estate planning is a unique process because it involves complex legal, tax and financial issues that relate to sensitive and distinct family matters and family structures.  Through proper and creative planning, I can save certain families several hundreds of thousands of dollars in taxes and legal costs.

The legal and tax costs of not having, or having a poorly drafted, will or trust can be financially oppressive and emotionally painful.  When wills or trusts are not drafted properly, legal fees for probate matters can be several thousands of dollars.  Additionally, estate and gift taxes can be several hundred thousands of dollars, most notably when the last spouse to die has a gross estate that exceeds the applicable federal and state tax exclusions.  Since the federal estate and gift tax rate is currently almost 50%, significant tax savings can result from proper planning and execution of the appropriate instruments. 

Estate planning, when done correctly, is performed primarily to

(1) transfer and manage property efficiently and effectively in accordance with my client's intentions;

(2) save the client's family estate and gift taxes. 

Ultimately, each family's estate plan primarily depends upon their net worth and their intentions regarding property disposition.  For some clients, simple wills or trusts are desired.  For other clients, however, more complicated drafting and planning is necessary in order to save them from exorbitant and unnecessary estate and gift tax liabilities.  Although smaller estates require less sophisticated planning, having a sound estate plan can be an ongoing process because each family's plan must be revisited every few years to account for sometimes even marginal increases in net worth or changes in circumstances.

When I meet with clients to discuss their estate plan, I thoroughly educate them about the legal and tax consequences of property ownership and transfer during life and after death.  As my clients and I review their answers and items relating to my estate planning questionnaire, we discuss the availability of assorted estate planning techniques, including the applicability and propriety of different types of wills and trusts.  I advise my clients as to which of the appropriate estate planning devices are most suitable for their financial and tax situation.  When I devise estate plans for my clients, I optimize the utilization of the statutory exclusions and deductions, including the applicable exclusion, marital deduction, and annual gift tax exclusion.  I also establish trusts for life insurance policies and minor children to account for custom-tailored needs and to prevent unnecessary tax liability. 

Additionally, I recommend that each client have reciprocal powers of attorney and living wills.  Generally, a power of attorney permits another person to have the power to act on a client's behalf.  However, a springing power of attorney is essential when, due to an injury or sickness, a client is incapable of managing his or her own affairs.  Durable powers of attorney stay in effect even during incapacity or disability. Powers of attorney are usually required by many financial institutions before anyone is permitted to conduct certain financial transactions on another's behalf.  Without a power of attorney, legal and court costs can become expensive and the incapable person's family may experience unanticipated lapses in time before they may use desperately needed funds.

Generally, a living will directs a physician in a life support situation.  My clients' living wills include advance medical directives and health-care proxies.  Without certain directives of a living will, families may incur unexpected extraordinary medical costs when there is no prospect for even marginal health recovery.  A living will can be drafted flexibly to take into account the current rational wishes of the declarant.