Lu Yun Law Prof Corp

What's Estate Planning & Execution?

Proactive, Targeted & Tax-Efficient  

Control Estate Distribution

Let's say that you have three children, but you have a strained relationship with one of them, and you do not want them to inherit any of your assets, especially where he/she addicted to gambling. Without estate planning, that child would still be entitled to a portion of your estate under the laws of intestacy.

To exercise control over distribution and ensure that your assets go to the people you want, you can create a will or trust that specifically excludes that child from receiving any part of your estate. In your will or trust, you can name the other two children as the beneficiaries of your assets, and specify that the third child is not to receive anything.

Tax Minimizing

Let's say that you have a large estate, including multiple properties, investments, and other assets, and you want to minimize the amount of taxes that your beneficiaries will have to pay on their inheritance. Without proper estate planning, your beneficiaries could be subject to significant estate and inheritance taxes, which could diminish the value of their inheritance.

To minimize these taxes,  you could create a trust that allows you to transfer assets to your beneficiaries while minimizing estate and gift taxes. In your trust, you can specify that your assets will be distributed to your beneficiaries over a period of time, which can reduce the amount of taxes that they have to pay. 

Assets Protection

Let's say that you have a large estate, including multiple properties, investments, and other assets, and you want to ensure that your assets are protected from creditors, lawsuits, and other potential threats.

To achieve this goal, you can create a limited liability company (LLC) to hold your assets. By placing your assets into a trust or LLC, you can shield them from potential creditors and lawsuits, as the assets are technically owned by the trust or LLC and not by you personally.

You can create a durable power of attorney, which allows you to appoint someone to manage your finances and assets in the event that you become incapacitated. By doing so, you can ensure that your assets are protected and managed in a way that is consistent with your wishes.

Planning for Incapacity

Let's say that you have a child who has a disability or special needs, and you want to ensure that they are provided for after you pass away. However, your child may not be able to manage their own finances or make decisions about their care due to their disability.

In this situation, you can use estate planning to create a special needs trust, which is a type of trust that is designed to provide for the needs of a person with a disability while preserving their eligibility for government benefits. You can ensure that your child is provided for after you pass away, and that their needs are met in a way that does not jeopardize their eligibility for tax benefits as well.

Legal & Accounting Cost Lowering

To achieve this goal, you can work with an experienced estate planning attorney and accountant to create a comprehensive estate plan that includes a will or trust, power of attorney, health care directive, and other important documents.

By creating a comprehensive estate plan, you can ensure that your wishes are clearly articulated and that there is less likelihood of disputes or complications arising after your passing. This can reduce the amount of time and resources that your estate will need to devote to legal and accounting matters.

You can ensure that your financial records are organized and up-to-date, and that you have a clear understanding of your assets and liabilities. This can help to streamline the estate planning process and reduce the amount of time and resources that are required.