Copyright 2011 The Law Offices of Jeffrey S. Salisbury All Rights Reserved.
Estate Planning, Trust Administration and Probate
Mr. Salisbury’s background in financial planning provides a unique and highly beneficial platform for his estate planning and probate work. He not only understands the legal side of his clients’ needs, he appreciates and blends the financial consequences of his advice into his recommendations. He thus works exceptionally well with the other members of the client’s team, to include financial planners, CPAs and insurance agents. This assures that all facets of a client’s estate plan are harmonized.
Mr. Salisbury is well familiar with all major estate planning tools, which he selects and uses judiciously to meet client needs and goals. Wills are used to direct the disposition of property and to appoint personal representatives, guardians and conservators. Living trusts are used to avoid probate and provide for asset management and personal care in the event of disability. Advance directives for health care empower others to make difficult end-of-life decisions for clients when they are unable to do so themselves. Durable powers of attorney may be availed for ongoing management upon incapacity without the need for court supervision.
Advanced planning techniques are used for estates large enough to potentially be subject to gift or estate taxation. Tools include but are not limited to: (1) disclaimer and marital bypass trusts to reduce estate and gift taxes, (2) irrevocable life insurance trusts to provide cash funds to estates comprised largely of illiquid real estate or private business interests, (3) family limited liability companies with gifting to freeze the value of an estate and transfer values to children free of tax, and (4) charitable remainder trusts allowing for major gifts to charity with substantial income and estate tax benefits.
All estate planning efforts are centered on achieving client goals with minimal complexity. Drafting is done in plain English, and document length is kept to no more than the necessary amount. Flat fee billing is available with flexible payment options. Planning is comprehensive in that Mr. Salisbury’s office will fully implement most estate plans as a part of the flat fee charged. A client newsletter and periodic updates assure client plans are kept vital and up-to-date.
Take a look at these important questions and feel free to give us a call to discuss your estate planning goals, dreams and concerns:
*Why do estate planning? If you love and care about your family or a favorite charity, this is a good way to help them. Quality estate planning can maintain family harmony, protect your loved ones from financial harm, and minimize the time and expense of transferring your estate, thereby helping your loved ones minimize the emotional pain they experience in their grieving sooner.
*What is a living trust? A living trust is a legal arrangement whereby you and if married your spouse manage and leave property to your loved ones and other beneficiaries.
*Should I have a will or a living trust? If your estate is very small, a simple will should be fine. However if you own your home and have other assets, particularly real estate or a business, a trust is likely better.
*What are the benefits of a living trust? With a living trust, you can avoid the time and expense of probate, which can take more than a year to process and cost several thousands of dollars.
*How does probate work? Probate is where a court supervises the administration of your estate. The court will review and approve every basic step in this process, including locating and valuing the assets, notifying beneficiaries and creditors, and approving the distribution of the assets to the beneficiaries.
*Will my estate owe taxes when I die? Currently, you can pass up to $1 million free of Oregon inheritance taxes, after which a substantial tax rate applies. Federal estate taxes are presently owed once your net assets exceed $5 million. Among other things, your home, 401(k), IRA and life insurance are included in these amounts.
*What if I die and my spouse remarries? Unfortunately, often the new spouse or their children will wind up with much of your estate, to the possible exclusion of your own children. You can avoid this problem through proper estate planning, including a living trust.
*What if my children divorce? The national divorce rate is approximately 50%. If a child of yours divorces, their spouse could wind up with much of the inheritance you left for the child. Here again proper estate planning, generally through the use of a simple trust plan, can avoid this all too common problem.
*Can estate planning help if I become sick or hurt? If you become incapacitated, a living trust will empower your successor trustee to make financial decisions for you and will avoid having to get a court-supervised conservatorship, which is a costly, time consuming and public process. In addition, a power of attorney will enable a family member or other trusted individual to make legal decisions for you. An advance medical directive will allow you to appoint an agent to make health care decisions for you when you are unable to do so yourself.
*What happens to my IRA when I die? If you have an estate of more than $1 million, it can be taxed twice – once for income tax and once for the Oregon inheritance tax. However, with good estate planning, those taxes can be managed, reduced and/or deferred.
*What about large estates with little cash? If you have a large estate made up with real estate, a business or other illiquid assets, your heirs might be forced to sell the assets on a “fire sale” basis in order to pay estate and inheritance taxes. There are several advanced estate planning techniques that can be used to discount the value of such assets and/or to defer the payment of taxes on them.
