"The
earth is the Lord's and the fullness thereof,
and all it's fullness, The world and all those
who dwell therein"
Psalm 24:1
Because what
we "own" is a trust from God, each
Christian should exercise wise stewardship
over every possession. Matthew 25:14-30 teaches
us the wisdom of using and increasing our
God given assets. Stewardship and the importance
of planning is taught in Hebrews 11:4, while
1 Cor. 4.2 teaches the importance of being
a faithful steward.
Estate Planning
The following
pages of information are a guide for holding
property during your life, passing your estate
on to your heirs in a manner and timing of
your choosing, all with minimum taxes and
intervention by the legal system. To contact
HIALEM click
here
Definition
of "Estate"
The total property
owned by an individual prior to the distribution
of that property under the terms of a will,
trust or the inheritance laws in the state
of legal residence of a deceased estate owner.
An individual's estate includes all assets
and liabilities, and all property.
Definition
of "Property"
Property is described
as either real or personal. Real property
is real estate, and personal property is everything
else. Personal property includes physical
assets such as automobiles, equipment, household
items, including financial property, such
as securities, notes or loans receivable,
bank accounts, cash and insurance policies.
WHY IS ESTATE
PLANNING NECESSARY?
Dying In
testate
Dying in testate
means dying without having prepared either
a will or a trust which provides the details
of passing your estate on to your heirs. Without
a will or a trust the inheritance laws (laws
of intestacy) of your state will determine
how your property will pass to your heirs.
If you have no heirs that fit the state's
formula, the assets will be taken by the state.
Problems With
Probate
If you die with
any property titled in your personal name,
there must be a probate process for that property.
Probate is the state's legal procedure for
handling two major functions for your estate:
1.Identification
of the rightful heirs to the estate and the
share size that each heir will receive,
2.Getting the
legal title of your property out of your name
and into the name of the heirs.
Having a will
drawn up in advance of your death will identify
the rightful heirs and their share. Even with
a will the re titling of your property still
must be handled by the state through the court
administered probate procedure. Reliable estimates
are that on a national average probate costs
run from 6% to 10% of the value of the estate.
This frequently leads to huge family battles,
and may cause the decedent's wishes to be
ignored. In addition, probate procedures are
all made public, causing family privacy to
be lost.
Probate can be
avoided quite simply through the use of a
family estate planning trust, either a living
trust or a life estate trust. Probate can
be avoided by titling your property in the
name of the trust. You have complete control
of the property during your life, but the
trust is considered to be the legal owner
of the property for title transfer purposes.
Upon your death a trustee that you have appointed
will simply handle the transfers or payments
to your heirs that you specified in the trust
- simply without lawyers, court supervision,
excessive costs or delays. To contact HIALEM
click
here
Make Informed
Decisions
HIALEM
can provide names of specialists in your area
to advise you. To contact HIALEM click
here
Planning Can
Be Of Benefit Now
Even before you
die there are two important estate planning
issues that should be considered for your
own benefit. These are:
1.Titling your
property in the best manner,
2.Asset protection:
Protection of your property from the legal
repercussions of your own possible mental
incapacitation, as well as protection from
divorce, lawsuits, judgments and liens.
Titling property
and asset protection are two interrelated
items. Correctly and fully addressing these
two issues is vital to preserve and build
your estate so it is there for both you and
your heirs to use. Coincidentally, proper
planning in this area will avoid probate as
well. To contact HIALEM click
here
Estate and
Inheritance Taxes
One of the crueler
provisions of this country's tax laws is the
possible taxation on the transfer of your
estate to your heirs. These are taxes imposed
on property that was acquired by you with
after tax dollars. Your estate consists only
of "after tax" property, but you
heirs may be stuck with another tax on the
same property. So the "death tax"
or estate tax results in double taxation.
What is maybe even worse are the rates. Estate
taxes start at 37% and quickly escalate to
55% just for federal taxes. Most states impose
their own estate tax on top of the federal
tax. Federal tax laws will exempt property
from estate taxes.
Good estate planning
can easily double the individual exemption
amounts for married couples, but some type
of trust is required to accomplish this. Neither
a will nor joint tenancy ownership of property
will provide this double exemption. To contact
HIALEM click
here
Gift Taxes
Anyone can make
a gift to any other person of up to $10,000
per year with no gift taxes. A married couple
can then give 20,000 to one person in any
given year. A married couple can give 40,000
to another married couple. For annual gifts
within those limits there is little special
tax planning to do, and no gift tax return
to be filed. To contact HIALEM click
here
Problems From
Long Term Medical Care
One of the most
overlooked issues in estate planning, but
one that will devastate many estates, are
the costs associated with long term health
care. Long term health care usually involves
nursing home confinement for either the elderly
or others who are seriously and long term
injured or ill. Proper estate planning with
a type of trust known as a "life estate
trust" can solve this and many other
problems. To contact HIALEM click
here
Estate Transfer
& Heir Planning
One of the big
benefits of estate planning is the ability
to name your heirs, specify the share of your
estate they will receive, and dictate the
manner and timing at which they get their
share. To contact HIALEM
click
here
Please consider
adding HIALEM to you will!
If need information
on estate planning specialists in your area
click
here
Tanzania
Uganda
