At Vick Law, P.C., we understand that building wealth is only one part of the equation. Equally important is safeguarding that wealth for your loved ones and yourself. Through our holistic approach to estate planning, business planning, and asset protection, our firm is dedicated to helping you protect everything you hold dear — whether it's family, friends, or cherished charities. Our mission is to provide comprehensive solutions that address your individual needs and goals, ensuring peace of mind for you and your loved ones. For more information about our services, visit our website to explore details about our firm, gain access to our informative blog, and enjoy a complimentary newsletter subscription.
There are no candles to light or incense to burn when creating a holistic estate plan. Instead, the term refers to an estate plan addressing an overall plan for incapacity, taxes, property distribution and, if applicable, business succession.
Holistic Estate Planning is Planning for Life
All adults should have documents including Power of Attorney, Healthcare Power of Attorney, Advanced Directives, DNR (Do Not Resuscitate), MOLST (Medical Orders for Life-Sustaining Treatment; the name varies by state) and other documents used during your lifetime.
This can be uncomfortable, as the process forces consideration of physical vulnerability and mortality. However, giving thought to your wishes and expressing them in enforceable documents provides peace of mind for you and your family.
Planning for Taxes
For now, most Americans don’t reach the federal estate tax. However, state estate taxes are likely to be levied against your estate. Consider also how inheritances may have an impact on heirs’ taxes. If your goals during earning years and retirement include reducing taxable income, your estate plan can also address these goals.
Estate Planning
Wills and trusts are the foundation of an estate plan, used to pass assets to beneficiaries and minimize taxes. Assets passing through a will go through probate, while assets held by a trust are distributed according to the terms of the trust. Sometimes, life insurance policies are combined with wills and trusts to balance inheritances, so heirs receive equal portions.
Don’t neglect personal possessions, which can be distributed through the last will and testament. People underestimate the emotional weight of personal possessions, even those with little financial value, and the disputes their distribution can engender. If the estate includes high-value items, have appraisals done by a professional while the estate plan is being prepared.
Real Estate Property
Addressing ownership and distribution of real estate assets is needed for single-family homes, rental properties, or vacation homes. If siblings have different ideas on what should happen to the family home on the death of the second parent, the family could quickly become engaged in a dispute or litigation.
Some families create Limited Liability Corporations (LLCs) when all siblings want to keep the real property, with the attendant requirements of required reporting and taxes for the LLC, assigning shares and maintaining the property.
Business Succession
A succession plan makes it more likely for a family business to continue operating after its founders have passed or retired. Succession planning should be done once the business has achieved stability. However, it is typically not done until the owners create an estate plan and prepare for retirement. One critical question: is the business expected to fund the founder’s retirement? If so, how will this be accomplished? What will their shares be if family members are not involved in the business? Succession planning should be started long before being executed.
Benefits of a Holistic Estate Plan
Treating the entire estate plan as a cohesive unit reduces inefficiencies and provides ample opportunities to “cross-check” the plan. This worthwhile endeavor creates a plan for the future, protecting individuals and their families for life's eventualities.
Holistic estate planning isn't just about drafting documents; it's about planning for life's uncertainties and ensuring that your wishes are carried out in the most efficient and effective manner possible. By addressing incapacity, taxes, property distribution, and business succession, a holistic estate plan provides a comprehensive framework for protecting you and your family for generations to come. If you're ready to take the next step in securing your legacy, we invite you to book a consultation with Vick Law, P.C. Our experienced team is here to guide you through the process and create a personalized plan that meets your unique needs. Don't wait until it's too late — start planning for the future today.
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