800.999.1109 - Aviation Insurance & Risk Management Magazine
800.999.1109 - Aviation Insurance & Risk Management Magazine
800.999.1109 - Aviation Insurance & Risk Management Magazine
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• Read Your Will – When is the last time you actually read your<br />
will, front to back? You should do this at least once a year. Set this<br />
task up as a recurring appointment on your calendar, and treat it as<br />
one of your most important appointments of the year. If something<br />
does not look right or you have questions, call your attorney. If your<br />
attorney does not answer your questions sufficiently, consult with another<br />
attorney. Which brings up a very important point: Make sure the<br />
aattorney<br />
you depend on for this service specializes in the area of wills and<br />
es estates. You should meet with your estate attorney every three to five years<br />
to re review the will and discuss any changes you may have in your life, as well<br />
as any<br />
changes in the law.<br />
• Is Your Estate Protected? – When people think about a will, they think about<br />
who will benefit and what they should receive. A factor many overlook is the exclusion of those whom you do not<br />
want to benefit. A few examples are excluding certain family members (Michael Jackson excluded his father from<br />
his estate), former spouses and stepchildren, business partners, creditors, or anyone else who may try to claim a<br />
portion of your estate. Be sure your will is clear about who should benefit and who should not benefit.<br />
• Business Continuation Planning – Are you part owner of a business? How will the portion of the business<br />
you own be settled with your heirs? Do you have a Buy-Sell agreement in place? When was the last time<br />
the agreement was reviewed? When was the last time you made a determination that the proper funding, usually<br />
life insurance, was adequate? As your business changes, you must determine the company’s worth, which will<br />
determine if additional funding is needed for the Buy-Sell agreement. A good time to review this document and<br />
determine proper funding is at the same time you are reviewing your will. Lack of an annual review could leave<br />
your family receiving a smaller portion of the business than was originally intended.<br />
• Pay Taxes, Again? – The amount of taxes an estate must pay to the government can be a very large percentage<br />
of the estate. In addition to estate tax, some states have an inheritance tax. You’ve already paid taxes on most<br />
of the dollars you’ve earned; are you willing to allow your estate to pay taxes on these dollars AGAIN, at rates that<br />
are usually higher than your income tax rate? How are you going to reduce the taxes your estate will pay? Have you<br />
thought about leaving a contribution to a foundation, school, or charity? There are ways to make a large donation<br />
to these types of organizations and reduce your estate tax liability, without reducing the estate left to your family.<br />
• Life <strong>Insurance</strong> – Do you have any? Do you have enough? How did you determine the amount of life insurance<br />
you purchased? Have you factored the amount you need into your estate planning? Many people think of life<br />
insurance as assets that will flow into the estate after their death, which will then be paid to their heirs. However,<br />
life insurance can be used to accomplish many different things in estate planning. Have you thought of life insurance<br />
as providing a way to pay your estate taxes? What about as a replacement for assets you donate to a charity?<br />
These are just two of the many ways life insurance proceeds can be used in your estate plan.<br />
There are many things that can be done so your estate is handled in the manner you want. However, it will take<br />
some planning and annual review to make sure your will continues to work in the manner you intended. Putting<br />
this process off until “tomorrow” could put your family in jeopardy of losing assets you have worked very hard to<br />
obtain. Step #1: Set the first annual appointment on your calendar now to review your will and Buy-Sell agreement.<br />
If you do not have a team to handle these complex issues, we can help you build your team. Let’s discuss what<br />
you can do today to protect your family tomorrow. �<br />
20 | <strong>Aviation</strong> <strong>Insurance</strong> & <strong>Risk</strong> <strong>Management</strong>