Estate Planning/Wealth Preservation
In addition to the growth of client assets, Buckeye Wealth Management assists clients with the “preservation” of their wealth.
The following concerns are a general sample of issues that can affect families at the death of a loved one.
After a death has occurred, there are typical problems which can create a burden on those who are left behind, unless careful planning is done…in advance. Without proper planning documents in place, an estate could be subjected to unnecessary taxes and expenses.
Estate settlement costs can be expensive. These consist primarily of Probate fees and Estate (death) taxes.
- Probate Fees: 5% - 7% of estate value. (Data based on averages) Fees paid to the Court, the Executor, Auditor and attorneys
- Death Taxes: The Feds assess estate taxes on the value of the estate assets at the time of death, and proper planning can allow for credits against these taxes.
Ohio has done away with Estate tax, and the Federal Estate Tax allows for a size-able exemption in the millions of dollars and, once this is exceeded, the FET on the remaining taxable estate can be up to 40%.
Improper Arrangement of Estate Assets
- Liquidity: May not be enough Liquid Assets to pay the Estate settlement costs.
- Cash Flow: May not be enough Income to care for loved ones left behind; spouse and children may not be able to continue living “in their world”.
Transfer of Assets
Estate assets can be subjected to Probate delays, in addition to legal expenses, so it is important to review how real estate, bank accounts and investment accounts are titled, in addition to how beneficiary designations of insurance policies and pension plans are structured.
Assets transferred to Minors may be in cumbersome Guardianship accounts until they attain age of 18, at which time all assets and monies are distributed outright to them… at an age when they may not be financially capable, or responsible.
Another aspect of this is how to keep assets in your “bloodline” in the event of having a married child, or grandchildren, and the problem of asset-management for their benefit
Care of Minors
Lack of proper Guardianship designations can cause tremendous strife and expense for the surviving children.
Asset Management of childrens’ bequest, in the hands of the wrong person, can cause assets to
be unnecessarily depleted or lost.
For more information on estate planning, contact us today.