An Orange County estate planning lawyer says that estate plans need to take the following often-neglected but important issues into consideration when developing an estate plan or risk depleting estate assets:
Cash to administer the estate. Having insufficient cash to administer the expenses of the estate while it is in probate or otherwise being settled may mean having to sell or borrow against assets, which diminishes the inheritance.
Taxes. In addition to estate tax, there may be a tax bill for the estate’s earnings income.
Asset inventory. Leaving a comprehensive list of assets for the estate executor will save time and money that might otherwise have to be spent to locate all assets.
Beneficiary designations. An estate inventory should also include information on beneficiaries for each of a decedent’s bank and investment accounts, insurance policies and retirement accounts.
Creditors. Providing a comprehensive list of creditors in estate plan documents will help to verify or refute any creditor claims.
Asset valuation. Assets that may be hard to value should be annotated with a value estimate and details on how that figure was derived.
Gifts. If an asset with current paper losses is given, the recipient cannot deduct the loss. It is more advisable to sell the asset and deduct the loss.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.