Creating & Managing Wealth, LLC - Estate Planning Services>

Estate Planning - Not just for the wealthy

Regardless of age or family circumstances, everyone should have an estate plan. Is yours in place and up to date?

Scenario: Married couple, total estate value less than $1 million

Draft simple wills that leave property to a revocable living trust -which becomes irrevocable at death -and that name guardians for dependent children.
Create and fund a revocable living trust for each spouse to avoid or minimize probate; at the death of the first spouse, the living trust becomes irrevocable and splits into a credit shelter trust and a trust for the benefit of the surviving spouse.
Execute a durable power of attorney and health care proxy for each spouse.
Consider naming a revocable living trust as the beneficiary for qualified retirement assets.
Think about gifting ownership of life insurance policies to an irrevocable life insurance trust.
Consider long-term-care insurance.

Glossary of Terms

Credit shelter trust. A trust created at death that is funded with the federal estate tax exemption amount ($1million in 2003). It usually provides for income and discretionary principal payments to the surviving spouse with none of the trust assets becoming part of the surviving spouse's estate.

Durable power of attorney. A document that appoints an agent to act for you if you are not able to do so.

Health care proxy. A document that appoints an agent to make your health and medical care decisions if you are not able to do so.

Living will. A document that expresses your wishes regarding health care if you are in a terminal condition or a permanent unconscious state.

Probate. A legal proceeding to effect the transfer of probate assets (assets titled in your name alone) to your heirs.

Revocable living trust. A trust created during your lifetime that you can control and change. If it is funded with your assets, you may avoid or minimize probate.

Advisory Services and Securities offered through Lincoln Investment Planning, Inc.

Registered Investment Advisor, Member FINRA/SIPC.

Creating & Managing Wealth, LLC. and Lincoln Investment Planning, Inc. are independently owned and each is responsible for its own business.

Shares of mutual funds are not deposits or obligations of, or guaranteed or endorsed by, any financial institution; are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other agency; and involve risk, including the possible loss of the principal amount invested.