Slide 19 of 20
What do you need to consider when putting together a management plan for your estate?
There are two crucial factors to consider:
First, what’s the value of your estate? As you make this calculation, make sure you include all the property that you control or have an interest in. This includes personal property, your home, real estate, cash and bank accounts, investments, retirement plans, business interests, and life insurance—including the death benefits. In 2018, the gross value of your estate must exceed $11,200,000 in order for you to be subject to the federal estate tax. But even if you are not, you should consider getting your estate and healthcare documents in order so that your wishes may be carried out.
Second, what are your estate management objectives? Ask yourself the following questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you're ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself? Do you want to provide for your spouse if you should die first? Do you have young children to provide for? If your children are grown, do you want to distribute your estate equitably—if not perfectly equally? Will you need to provide cash to help your heirs settle your estate?