Lecture Personal financial planning – Chapter 15: Estate planning. The goals of this chapter are: Determine what estate planning is and how to employ its key topics, conclude that estate planning isn’t only for the rich, recognize the merits of having a will, establish the steps in an overall estate plan, . | Lecture Personal financial planning Chapter 15 Estate planning Chapter 15 Estate Planning 1 Chapter Goals Determine what estate planning is and how to employ its key topics. Conclude that estate planning isn t only for the rich. Recognize the merits of having a will. Establish the steps in an overall estate plan. Develop several tax reduction strategies. Assess the advantages and disadvantages of many estate planning tools. 2 Overview The principal purpose of estate planning is to protect and benefit others we care about after we die. Steps 1 Understand What Estate Planning Is 2 Identify Objectives 3 Identify Assets 4 Establish a Will 5 Consider Other Estate Planning Tools to Meet Objectives 6 Evaluate Obstacles and Ways to Overcome Them 7 Become Familiar with All Types of Relevant Taxes 8 Determine Available Financial Planning Strategies 9 Incorporate Estate Risks 10 Consider Separately Estate Planning for Minors 11 Assess Anticipated Resources 12 Finalize the Estate Plan 13 Implement the Plan 14 Review Periodically 3 Understanding What Estate Planning Is Estate planning is analyzing and deciding on how your assets are to be managed and apportioned to others in the event of your death or disability. The goal is to establish an estate structure that will maximize assets left to your beneficiaries and achieve your other wishes in an efficient way. The process while varying in the amount of supervision needed can be the same whether it is for a large or small estate. Estate planning is not reserved just for the wealthy it 4 concerns virtually everyone. Identify Objectives Questions to ask when establishing objectives What am I trying to accomplish Am I trying to set aside monies for the people with the greatest need Do I want to provide for people I care most about Do I want to gift at least in part now or wait until my death When we speak of maximization of assets as an objective we have to decide on the priority that we give to others as compared with ourselves.
