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the property of the cosigner. While this may be as intended, it is a mistake not to review all co-owned assets when making up a will.
9 . Having life insurance in the name of the insured . Life insurance in the name of the insured can result in the payment of estate tax, which diminishes the value of the policy. By putting the policy into an irrevocable trust, this can be avoided.
10 . Not using a gifting plan . As of 2013, the government allows gift- ing, tax free, of up to $13,000 annually to as many individuals as you choose. Many people with significant estates neglect to use this as a means of giving away some of their assets tax-free to family members.
Let’s Review
Take a few moments to review the following estate planning concepts and match them with the appropriate term.
1. _____ Trust
2. _____ Will
3. _____ Gifting
4. _____ Living trust
5. _____ Living will
6. _____ Probate
7. _____ Estate taxes
8. _____ Estate tax exemption
a. There are various ways to limit these on your estate, depending on the size of the estate and your family situation. It is worthwhile to discuss the options with your accountant or attorney.
b. Setting up one of these isn’t essential, but if you have one it helps you maintain greater control over your assets and avoid the lengthy probate process.
c. These provide medical and health care instructions to be carried out should you be on a life support system.
d. A legal process that usually involves filing a deceased person’s will with the local _____ court, taking an inventory and getting appraisals
Estate Planning