Wills Explained (28-Page Book)
In this 28-Page book, Steven G. Siegel provides a comprehensive explanation of wills, estate planning with wills and the many factors that need to be addressed with the client during the planning process.
Estate planning involves a great deal more than arranging for the transfer of property on the death of the owner, which is the fundamental purpose of a will. The planner has to do several things to help a client plan a will. The planner will want to look at the existing forms of ownership of property, the possibilities of lifetime personal and charitable giving, the use of living trusts, existing life insurance arrangements, qualified retirement plan and IRA benefits and beneficiary designations, and other property interests that may or may not pass under the will. If the estate owner has interests in a closely held business, the planner will want to examine those interests carefully in terms of their legal and tax structure and the planning opportunities and pitfalls present in those interests. The planner should also consider and address issues of family business succession planning. All of this planning must be considered in the context of whether federal or state estate or inheritance taxes are involved.
When the planner has the complete picture of the individual’s assets and liabilities, as well as any plans for heirs and other intended beneficiaries, then the planner can begin thinking about preparing the outline or financial plan for the client’s will, desires, and intent. The intent is most important. When a planner or a court looks at a will with a view to interpret it, if there is any ambiguity in the language used, the objective is to find out what the person who made the will (the testator) intended. The objective of the will draftsman should be to put into clear language and explain what the testator really wants.
Having a will offers many advantages. A will enables an individual to decide both the type and the amount of property to be distributed to selected primary beneficiaries. A will can also specify the terms and conditions governing the distribution of property to contingent beneficiaries. Naming contingent beneficiaries is important in case the primary beneficiaries predecease the testator (that is, the person who makes the will) or the primary beneficiaries choose to disclaim property. The will should state how the testator wants any disclaimed property to be distributed. A will also allows an individual to address other estate administration matters, such as appointing a guardian for minor children, selecting an executor, compensating the executor, and directing which beneficiaries will bear the burden of the estate’s debts and taxes. Provisions can be made to address persons with special needs or lifestyle concerns.
Estate planning involves a great deal more than arranging for the transfer of property on the death of the owner, which is the fundamental purpose of a will. The planner has to do several things to help a client plan a will. The planner will want to look at the existing forms of ownership of property, the possibilities of lifetime personal and charitable giving, the use of living trusts, existing life insurance arrangements, qualified retirement plan and IRA benefits and beneficiary designations, and other property interests that may or may not pass under the will. If the estate owner has interests in a closely held business, the planner will want to examine those interests carefully in terms of their legal and tax structure and the planning opportunities and pitfalls present in those interests. The planner should also consider and address issues of family business succession planning. All of this planning must be considered in the context of whether federal or state estate or inheritance taxes are involved.
When the planner has the complete picture of the individual’s assets and liabilities, as well as any plans for heirs and other intended beneficiaries, then the planner can begin thinking about preparing the outline or financial plan for the client’s will, desires, and intent and then engaging the attorney to draft the necessary documents. The intent is most important. When a planner or a court looks at a will with a view to interpret it, if there is any ambiguity in the language used, the objective is to find out what the person who made the will (the testator) intended. The objective of the will draftsman should be to put into clear language and explain what the testator really wants.
Author:
Steven G. Siegel is president of The Siegel Group, a Morristown, New Jersey - based national consulting firm specializing in tax consulting, estate planning and advising family business owners and entrepreneurs. Mr. Siegel holds a BS from Georgetown University, a JD from Harvard Law School and an LLM in Taxation from New York University.
He is the author of several books, including: Planning for An Aging Population; Business Entities: Start to Finish; Taxation of Divorce and Separation; Income Taxation of Estates and Trusts, Preparing the Audit-Proof Federal Estate Tax Return, Putting It Together: Planning Estates for $5 million and Less, Family Business Succession Planning, Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts; The Federal Gift Tax: A Comprehensive Analysis; Charitable Remainder Trusts, Grantor Trust Planning: QPRTs, GRATs and SCINs, The Estate Planning Course, The Retirement Planning Course, Retirement Distributions: Estate and Tax Planning Strategies; The Estate Administration Course, Tax Strategies for Closely-Held Businesses, and Tort Litigation Settlements: Tax and Financial Issues.
Mr. Siegel has lectured extensively throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including National Law Foundation, AICPA, CCH, National Tax Institute, National Society of Accountants, and many others. He has served as an adjunct professor of law at Seton Hall and Rutgers University law schools.
The Siegel Group provides consulting services to accountants, attorneys, financial planners and life insurance professionals to assist them with the tax, estate and business planning and compliance issues confronting their clients. Based in Morristown, New Jersey, the Group has provided services throughout the United States. The Siegel Group does not sell any products. It is an entirely fee-based organization.
