Fred Schoen Fiduciary Services, Inc.
Estate Planning
 
Implications

Durable Power of Attorney
 A will makes no provision for your incapacity. A will is effective only at your death. Thus, there is always the possibility that if you were severely injured or became ill and were unable to manage your affairs, the Court would place you under Guardianship. Every major decision regarding your affairs would involve the Court, which is extremely costly and becomes a public record. For this reason, a comprehensive estate plan should include a Durable Power of Attorney

What if you die without an estate plan?
 Tax implications of an estate
It is imperative to understand the federal and state tax implications of any will that you sign. Federal law allows each individual to leave and estate of an amount equal to the applicable exclusion (less any lifetime transfers subject to gift tax) free of any federal estate tax. The Taxpayer Relief Act of 1997 gradually increases this exclusion until the year 2006:
Year Exclusion
1999 650,000
2000-2001 675,000
2002-2003 1,000,000
2004-2005 1,500,000
2006-2008 2,000,000
2009 3,500,000
2010 No Tax

Amounts over the applicable exclusion may be subject to taxation at tax rates ranging from 37% to a maximum rate or 55%.

Cost of Estate Planning Documents
 The initial fees for drawing up a will can range from $500.00 to $2000.00 or more, depending on the complexity of the estate plan. While the cost of preparing a will can be modest, the cost of dying without an estate plan can be very expensive.

 
 
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