Estate Planning: Time to think about it.

If you haven’t started yet, it’s not too late to begin your estate planning. Most Americans haven't made even a simple will, to say nothing of a more comprehensive plan to avoid probate or save on estate taxes. Yet ignoring the inevitable can have dire consequences that can end up being very expensive and even result in irrevocable rifts among family members. 

There are many reasons to have an estate plan. The most obvious reason is to protect your hard-earned estate. Leaving it to your wife and kids may seem like the clear choice. But families change over time and while you may love your son, you may not be quite so sure about that new daughter-in-law you have. In fact, if you set up your estate correctly, you can make sure that she won’t get any of your inheritance in the event that she divorces your son. Your wife could be another problem. After many years of happiness together, it’s possible that she is not the sort to live alone after you depart. But if she remarries, do you want your hard earned cash with her new husband? Making the right decisions now can make sure that your money won’t end up with his side of the family. 

Besides making sure that your estate doesn't fall into the wrong hands, estate planning allows you to stipulate exactly what each beneficiary receives. A will is one way to do this, but there are other ways. For example, you can list your beneficiaries in your insurance policies. You can choose someone to be your power of attorney. You can name someone to become your kids' legal guardians should something happen to you.

When considering the right estate plan for you, think about three objectives: Make your plan easy to administer, develop a plan that will lower the taxes payable on your estate and figure out how to leave your estate so that it can be put to the best use possible by your heirs.

The good news is that depending on your age, health, wealth and innate level of caution, you may not need to do much at all in the way of estate planning. And even if you do decide you need a will or a trust, you probably won't need a lawyer. Especially if you aren't dripping with Picassos or fat investment accounts, it is easy and safe to prepare most basic estate planning documents yourself. Just learn what you're doing by using good self-help materials.

Questions? call us at 813-964-7100


Visit our website at :www.MintcoFinancial.com

Life Insurance & Estate Planning by Pacific Life

Why would I need life insurance in my estate plan?
Life insurance insures your life. So, when you die, the death benefit is paid to the policy's beneficiary. Life insurance death benefit proceeds can give your estate enough liquid assets to help complete your wishes. These include:
Maintain your family's lifestyle - life insurance death benefits may help by paying off debt and providing a lump sum of cash from which your family can draw in the event of your death.

Replace your income for your family – losing you may not only be an emotional loss, it could also be a significant economic loss. Life insurance death benefits can replace your lost income either in a lump sum death benefit or payable as a guaranteed income monthly.

Creating equitable inheritance – leaving a significant asset to one heir could be balanced by the equivalent in cash (from the death benefit proceeds) to another heir.

Planning with a blended family – life insurance can help you provide your children from a prior marriage with an inheritance even if you leave your other assets to your current spouse.

Solve the need for cash and liquidity to settle an estate - to pay for administrative costs, gift taxes¹ and estate taxes². Your estate might have assets and family heirlooms that heirs may not wish to sell to pay expenses or that are not easily sold. That may include the family home, farm or bare land, artwork, collectibles, and more. Life insurance can be used to provide the necessary liquidity to pay the expenses associated with your estate settlement costs.

Help with business owner’s unique needs such as: 1) help your key employee buy the business from your spouse. That way the business can continue and your spouse has assets to live on or, 2) pass your business to your heirs by giving them the working capital to keep it going through the transition.
These are just a few examples of how life insurance can help address your estate planning needs. You can work with your insurance professional and other financial advisors to determine if you need more liquid assets (money) in your estate.

Contact us for more information and a review of your options: www.MintcoFinancial.com
 Or e-mail us with your questions: anecamara@mintcofinancial.com



¹Starting on January 1, 2011, the annual gift tax exclusion is $13,000 per donee and is indexed for inflation.  From January 1, 2011 to December 31, 2012, the lifetime gift tax exemption amount is $5,000,000 (indexed for inflation starting January 1, 2012); and, the maximum gift tax rate is 35%. 
²From January 1, 2011 to December 31, 2012, the federal estate tax exemption amount is $5,000,000 (indexed for inflation starting January 1, 2012); the maximum estate tax rate is 35%; and, the rules regarding step-up in basis for property transferred at death are reinstated.  Also over the same time period, if the executor of a deceased spouse’s estate so elects, the surviving spouse could later use his or her own unused estate tax exemption, plus the unused exemption of his or her most recent deceased spouse.
For more information on this subject, and professional guidance in selecting the right kind and amount of insurance coverage, contact your insurance professional.
This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
Pacific Life refers to Pacific Life Insurance Company, and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York, and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues, and its product and rider guarantees are backed by that company’s financial strength and claims-paying ability. Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker-dealers.