Understanding your estate is crucial for securing your legacy and protecting your loved ones' futures. Join us in this episode as we demystify the term 'estate' and explore its profound impact on your estate plan.

Understanding the Estate

• An estate comprises all your assets, regardless of their value, including:

• Real property (e.g., homes, land)
• Cash equivalent accounts (e.g., savings, money market)
• Stocks, bonds, and investment accounts
• Business interests (e.g., LLCs, partnerships)
• Life insurance policies
• Retirement accounts (e.g., IRAs, 401ks)

• Key point: Nearly everyone has an estate, regardless of wealth.

 

Importance in Estate Planning

• Different assets have varying inheritance processes:

• Assets with beneficiaries bypass the will and probate process.
• Jointly owned assets transfer directly to the surviving owner.

• Wills control probate assets, while trusts govern trust assets.
• Proper titling and beneficiary designations are crucial for asset distribution according to wishes.

 

Types of Estates

• Probate Estate:

• Governed by the will, includes assets without designated beneficiaries or joint owners.
• Subject to probate proceedings for distribution.

• Trust Estate:

• Assets owned by a trust, managed according to trust terms.
• Avoids probate and provides privacy in asset distribution.

 

Tax Implications

• Estate tax applies to the total value of assets at death.
• Thresholds for filing estate tax returns vary by state:

• In Oregon, over $1 million; in Washington, just under $2.2 million.

• Proper estate planning can minimize tax liabilities through strategic asset management.

 

Conclusion and Resources

• Preparation is key: Maintain a detailed asset list with current titling and beneficiary information.
• Caress Law offers resources such as on-demand classes and live webinars for comprehensive estate planning education.

• https://caresslaw.estate/estate-planning-workshops/7-truths-and-untruths-of-estate-planning/
• https://caresslaw.estate/episode-3-the-effect-of-account-titling-and-beneficiary-designations-in-your-estate-plan/
• https://caresslaw.estate/episode-2-what-is-probate-and-can-it-be-avoided/

• Visit www.caresslaw.estate  for access to workshops and further guidance on estate planning.