Four of the most important reasons you need an estate plan are:
- To control who manages and receives your assets at your death.
- To minimize administrative expenses and legal fees.
- To transfer a greater share of your assets to your heirs and favored charities/causes.
- To protect your heirs by providing them with wealth management continuity throughout your lifetime and beyond.
Currently, the federal estate tax has been repealed in 2010. However in 2011 this tax returns and estates may be taxed at rates up to 55%. At that time any amount can pass to a spouse free of estate tax (as has long been the case). But only up to $1 million of the decendant's assets may pass free of estate tax to someone other than the spouse. It is possible that Congress will act to change the federal estate tax law before the end of 2010, possibly even retroactively.
Federal estate taxes aside, state estate taxes and other expenses associated with death may still apply.
Reasons for ongoing review
Even if you already have an estate plan, you should review it in the event of:
- Marriage
- The birth of a child or grandchild
- A significant change in your net worth (stock option vesting or inheritance)
- Changes in financial objectives (such as early retirement)
- The purchase or sale of a house or family business
- Divorce
- Death of a spouse or beneficiary
- Changes in the tax laws
Morgan Stanley Smith Barney has many alternatives available to help you protect your assets. These products and services include:
NOTE: Morgan Stanley Smith Barney and its Financial Advisors do not provide tax or legal advice. Consult your personal tax advisor or attorney for matters involving taxation and tax planning and your attorney for matters involving personal trusts and estate planning. Our estate planning services are not financial planning (unless they are specifically called financial planning). They do not create an investment advisory or a fiduciary relationship (including under ERISA) between you and Morgan Stanley Smith Barney. Morgan Stanley Smith Barney will prepare a financial plan at your specific request through Morgan Stanley Financia OutlookSM. Financial Outlook is a service mark of Morgan Stanley Smith Barney and its affiliates.
