WHAT IS

ESTATE PLANNING?
Get a Better Understanding About Estate Planning in Connecticut and Why It Is So Important

Connecticut What Is Estate Planning?

BARRY D. HOROWITZ

Estate Planning Attorney www.preserveyourestate.net

Statistics tell us that the majority of people in the United States have not executed the appropriate estate planning documents. Apparently, far too many people are unaware of the need to engage in planning. This is largely due to a lack of understanding. In this paper we will look at exactly what estate planning is, and why it is important.

TRANSFERRING ASSETS: THE LAST WILL OR LAST WILL & TESTAMENT

Making preparations for the future transfer of your financial assets is a major part of estate planning. This involves the execution of legally binding documents with which you state your wishes. One very commonly used vehicle of asset transfer in the field of estate planning is the last will or last will and testament. In this document you name your heirs, and you specify exactly what each of your heirs will be inheriting. Everything does not happen on its own after you pass away. Someone must actually follow these instructions, pay final debts, prepare the property for distribution, and ultimately distribute inheritances. This individual is the executor or executrix. The difference between an executor and an executrix is gender. An executor is a male who handles the affairs of an estate, and an executrix is a female. You name the executor or executrix when you create the last will.

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If you are the parent of a dependent child or adult, you can nominate a guardian when you are creating your last will. This individual would be empowered to care for your dependent or dependents in the event of your death assuming the other parent had passed away as well.

THE PROCESS OF PROBATE

If you arrange for the transfer of your property through the terms of a last will the heirs to the estate don't receive their inheritances until the estate has been probated. The executor admits the will to probate. The court then supervises the administration of the estate. Interested parties who want to collect debts can come forward during probate seeking satisfaction. If someone wanted to contest the will, this individual could present an argument before the court. During probate the executor or executrix may have to see to it that property is appraised and liquidated so that it can be distributed among multiple heirs.

AVOIDING PROBATE
Because of all the things that must take place during the process probate can take a lot of time. Once again, the heirs don't receive their inheritances until the estate has been probated.

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There are also considerable probate expenses that accumulate during the process. These expenses can reduce the value of the estate. Because of the above pitfalls, people often arrange for the transfer of their monetary assets outside of the process of probate. This can be done in a number of different ways.

PROBATE AVOIDANCE STRATEGIES

One very common way to avoid probate is through the creation of a revocable living trust. With a revocable living trust you as the grantor can serve the roles of trustee and beneficiary while you are living. You can receive monetary distributions out of the trust, and you can manage the assets that have been conveyed into the trust. Because it is revocable, you can dissolve the trust if you want to and go forward with the money as you please.

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The grantor may also change the terms of the trust. You can add or remove beneficiaries as you see fit. Once you die, the trustee and beneficiary that you choose to assume these roles after your passing will do just that. The trustee will distribute monetary resources to the beneficiary or beneficiaries in accordance with your wishes as stated in the trust agreement. There are other ways to avoid probate. Some of them are more complicated, and they achieve multiple objectives beyond probate avoidance. Others are rather simple and straightforward, but they present potential problems later on. Payable on death accounts and joint tenancy would fit this description.

INCAPACITY PLANNING
Some people reduce estate planning to the financial component, but there is something else to consider. People don't generally die after having been perfectly healthy and lucid. Incapacity is a very real possibility if you live to an advanced age. You can prepare for this contingency by executing documents called durable powers of attorney.

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With these legally binding devices you name people to act in your behalf in the event of your incapacitation. Because they are in fact durable, they remain in effect even if you become incapacitated.

CONCLUSION
Once you reach the age of adulthood estate planning becomes quite relevant to you. Everyone will pass away eventually, and it is something you simply have to prepare for in advance. You don't make these preparations for your own well-being. You plan your estate to simplify things for your loved ones during a difficult time.

REFERENCES
Forbes http://www.forbes.com/sites/janetnovack/2012/10/14/the-forbes-guideto-estate-planning/ American Bar Association http://www.americanbar.org/groups/real_property_trust_estate/resource s/estate_planning.html

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About the Author

Barry D. Horowitz

Barry D. Horowitz is a founding partner in the law firm of Nirenstein, Horowitz & Associates, P.C. He received his diploma from the Loomis Chaffee School and his Bachelor of Arts from Bennington College, where he dual majored in philosophy and music. Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award. After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award. Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court. He is a member of the Hartford County Bar Association, a charter member of the American Academy of Estate Planning Attorneys, and has recently received the American Academy Award. Mr. Horowitz is also an active member of the Connecticut Bar Association where he is a member of the Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he has earned a reputation as a dynamic and entertaining speaker. He also has recently published a book entitled Guiding Those Left Behind in Connecticut. Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD Gothic Park 43 Woodland St., Suite 520 Hartford, CT 06105 Phone: (860) 548-1000 What Is Estate Planning? WESTPORT 191 Post Road West Westport, CT 06880 Phone: 203-221-2617

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