People often think Estate Planning is important just to minimize taxes and to distribute your assets upon your passing. However, even more importantly, Estate Planning is a tool to protect your family and loved ones after your death. Proper Estate Planning provides a way for you to support your family financially and recommend Guardians to care for minor children. Minimizing tax implications neverthelsess is an important component of Estate Planning. With federal estate tax starting at approximately 35%, there can be substantial savings to a client’s estate with proper planning. Heirs may also be subjected to the Indiana Inheritance Tax. The tax rate and exemption amount for this relatively low tax vary according to how closely the heir is related to the deceased person.
Anticipating future care expenses can be an important part of Estate Planning, too. Based on your individual goals, we can help you navigate through the ever-changing eligibility rules for the government’s Medicaid program, or we can address long-term care insurance to avoid Medicaid and maximize independence non-institutional care alternatives.
We encourage you to review and complete our Estate Planning Guide to help you prepare for your Estate Planning appointment. This Guide raises many issues and questions that we’ll address with you in creating your Estate Plan. Don’t worry if you are unable to complete the entire form prior to your initial appointment–we are happy to help you work through the Guide and answer any of your questions
Wills
A Will (Last Will and Testament) is the most common Estate Planning document and often is the most appropriate foundation for an estate plan. It sets forth how to distribute your assets, who should care for your children and who should manage any assets you bequeath to minors. We will work closely with you to ensure that your will sets forth your wishes and to ensure that you understand your Estate Planning options.
Trusts
Trusts have many uses. They are especially important for parents with minor children, but can be created by a Will (“testamentary” trusts) as well as by a separate document a “Recovable” or “Living” trust (often called “inter vivos trusts”) in most cases. A trust, whether testamentary or “living,” may minimize taxes and future expenses for your estate and ensure that your children have your support and financial backing.
Revocable Living Trusts (sometimes given a twist and a trademark like “Loving Trust”) have the principal advantage of avoiding court proceedings, but only concerning the assets that are owned by the Trust. They typically are costlier to establish than a Will and they require ongoing attention to assure that future acquisitions belong to the Trust rather than to the individual. Because of Indiana’s simplified and speedy probate procedures, there generally is less need for Revocable Living Trusts here than in other states. There are trusts other than Revocable Living Trusts that also can serve unique and useful roles in a sophisticated estate plan, including provision for a non-citizen spouse or as an owner of life insurance benefits that will not be taxed on the death of the insured.
Advance Directive
As part of the estate planning process, you may want to consider making plans for management of your medical care and business, as well as your finances, should you become incapacitated. You may empower a trusted family member or friend – a proxy decision maker – to make decisions for you in consultation with your physician. The main instruments to empower such a proxy decision maker in Indiana are a Power of Attorney (with powers that may be limited to the financial, privacy and decision making aspects of medical care) and an Appointment of Representative for Health Care. Both instruments are defined and discussed in the Indiana Code and they are complementary to each other.
Alternately, or even in addition to appointing a proxy, you may attempt to anticipate circumstances in advance and to direct what you would wish done – an “advance directive.” That can include either a “Living Will” (generally refusing treatment if you are incapacitated and terminally ill) or, far less known, a Life-Prolonging Procedures Declaration” (generally requesting treatment if you are incapacitated, even if you are terminally ill). Expert opinion, however, has tended lately to recognize great limitations in the actual operation of Living Wills.
Asset Protection
Estate & Trust Administration
Estate and Trust Administration is the process of administering and properly disposing of the property and affairs of a deceased person. This process includes taking legal custody of the deceased’s assets, assembling them, paying legitimate claims of creditors, preparing and filing required state and federal estate fiduciary tax returns, and finally, making distribution of the remaining assets to those rightfully entitled to them. We assist those individuals who are appointed as an Estate Executor (also known as a Personal Representative) to properly administer their responsibilities. We also assist individuals appointed as a Successor Trustee under a Revocable Living Trust in carrying out their similar duties.