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Pinnacle e-Letter

Estate Planning Imperative for Everyone
By Chris Kelly, J.D., trust services advisor, Pinnacle Financial Partners

We all watch with interest when the media discusses the estates of the rich and famous. More specifically, we are fixated with the unusual provisions that make the headlines.

Unfortunately, many people develop the mindset that estate planning is only for the Leona Helmsleys of the world. In reality, everyone-filthy rich or not-needs to think long and hard about their estate and put a plan in writing.

You don't have to be Anna Nicole Smith to run into problems. Almost every plan I've reviewed has benefited from a few changes to make them more secure or clearer.

First Step: Write a Will

An estate plan is simply an intentional strategy for the management and distribution of your assets during your lifetime and upon your passing. A comprehensive approach will include your directions regarding how your life should be managed if you become unable to manage your affairs.

The cornerstone of any estate plan is a last will and testament. In your will, you appoint your estate's personal representative, who will manage and distribute your property according to the terms you set forth.

You also provide directions about how your assets will be distributed among your family, friends or charities. If you have minor children, you can also name a guardian for them until they become adults. If you don't have a will when you pass away, the state of Tennessee has written one for you-and it might not match up with your wishes.

Consider a Trust

Some individuals also might benefit from incorporating a trust into their estate plan to complement their will. In addition to some tax advantages, a trust could:

• Address privacy concerns, because a trust usually remains out of the public records
• Provide a means by which your estate is managed should you become unable to manage it yourself
• Allow for very specific planning and direction for the management of assets for minor children
• Allow for detailed guidance for the management and distribution of your assets to accommodate a unique need within your family, such as a child with special needs
• Determine the conditions (i.e. attaining a certain age, graduating from college, etc.) under which a beneficiary can receive assets from your estate.