WHAT DO YOU MEAN BY ESTATE PLANNING?

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" rowspan="2" width=185 BGCOLOR="#003333" TEXT="#F7F7FF" bgproperties="fixed" background="18bd4c00dduajq.jpg"> <bR> <bR> <bR> <div> <A HREF="id12.htm" TARGET="_top" TITLE=" Trust and Estate Planni"><B><IMG SRC="01109110.png" border=0 width="9" height="17" ALT="previous" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></A><B>       </B><IMG BORDER="0" SRC="1x1.gif" HEIGHT="17" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="17"><B>   </B><IMG BORDER="0" SRC="1x1.gif" HEIGHT="17" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="17"><B>       </B><A HREF="id11.htm" TARGET="_top" TITLE="The Goals of Estate Planning"><B><IMG SRC="01409110.png" border=0 width="9" height="17" ALT="next" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></A></div> <div> <A HREF="id6_m.htm#what_is_an_estate_" TARGET="TRLX_Middle" TITLE="WHAT DO YOU MEAN BY ESTATE PLANNING?"><B>What is an Estate?</B></A></div> <div> <A HREF="id6_m.htm#why_plan_" TARGET="TRLX_Middle" TITLE="WHAT DO YOU MEAN BY ESTATE PLANNING?"><B>Why Plan?</B></A></div> <div> <A HREF="id12.htm" TARGET="_top" TITLE=" Trust and Estate Planni"><B>Back to Estate Planning Page</B></A></div> <div> <A HREF="id11.htm" TARGET="_top" TITLE="The Goals of Estate Planning"><B>Next Page</B></A></div> <bR> <div> <A HREF="index.htm" TARGET="_top" TITLE="Law Offices of Mathews Bergen Grier"><B>Home</B></A></div> <bR> <bR> <div> <A HREF="mailto:mbglaw@cts.com" TARGET="_top" TITLE="mailto:mbglaw@cts.com"><B><IMG SRC="01573ce0.jpg" border=0 width="115" height="206" ALT="E-mail MATHEWS BERGEN & GRIER" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></A></div> </td> <td valign="top" colspan=2 height=75 BGCOLOR="#FFFBF0" TEXT="#080000"> <div> <I>WHAT DO YOU MEAN BY ESTATE PLANNING?</I></div> <div> </div> </td> </tr><tr> <td valign="top" height=405 width="100%" colspan=2 BGCOLOR="#FFFBF0" TEXT="#080000"> <div> by <A HREF="mailto:mbglaw@cts.com" TARGET="_top" TITLE="mailto:mbglaw@cts.com">John C. Grier, Esq</A>.1<FONT SIZE="2" COLOR="#000000" FACE="Arial" >          </FONT></div> <bR> <bR> <div> To understand both the process and the intended result of estate planning, it is necessary for you to have a clear understanding of the terminology used. We will try to explain these terms below.</div> <bR> <div>                                                   </div> <div> <FONT SIZE="2" COLOR="#000000" FACE="Arial" ><IMG SRC="029604b0.png" border=0 width="96" height="75" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"><IMG SRC="02a454b0.png" border=0 width="69" height="75" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> <A NAME="what_is_an_estate_"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A></FONT><B>WHAT IS AN ESTATE?</B>  The <I><B>estate </B></I>is made up of your property (both real and personal), your investments, insurance proceeds and other tangibles (like your home, your personal belongings, or business ownership, etc.). In essence, it is the <I><B>things of tangible value</B></I>, i.e., wealth, which you wish to pass to your beneficiaries. </div> <bR> <div> Estate Planning has three parts: 1) the creation of the <I><B>estate</B></I>; 2) the preservation of that <I><B>estate</B></I>; and 3) the distribution of the <I><B>estate</B></I> upon the death of the owner. The first two parts involve financial planning. This article does not deal directly with financial planning, although financial planning is very important. This guide was developed to focus upon the preservation and distribution of your <I><B>estate</B></I> after death and to describe how to protect yourself from a conservatorship during your life (should such protection ever be necessary). The following pages describe the transfer of what you have taken a lifetime to build to your heirs in an efficient fashion. The avoidance of a conservatorship and the avoidance of probate are achieved with the use of a Revocable Living Trust.</div> <bR> <div> <IMG SRC="02b604b0.png" border=0 width="96" height="75" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> <A NAME="why_plan_"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A><FONT SIZE="4" COLOR="#000000" FACE="Arial" ><B>WHY PLAN?</B>  Today, as society gets older (remember, the so called “baby boomers” now make up the majority of the population and are now approaching, or are over, 50 years of age), we are finding that more and more people are becoming unable to take care of their own affairs. When this happens, normally a conservator must be appointed by the court to manage those affairs. Without planning, a court proceeding will be required. This is both time consuming and expensive. With planning, a conservatorship may be avoided. This planning involves preserving your estate during your lifetime. You have three options to choose from when planning your estate: (1) Intestate Succession (No Will); (2) Testate Succession (By Will); and (3) The Revocable Living Trust, with a complete estate plan, including powers of attorney, etc.</FONT></div> <bR> <div> After your death, there will always be some fees and some taxes which have to be paid. This is true with or without “estate” planning. The fees, and possibly taxes, normally will be significantly lower with planning. Probate is very expensive and time consuming. The Revocable Living Trust avoids the probate of assets which are in the trust.</div> <bR> <div> In addition to probate, estate taxes may be due. Even if there are no estate taxes due, many times there will be income taxes due for that part of the year between January 1 of the year of death and the actual date of death.</div> <bR> <div> <FONT SIZE="2" COLOR="#0000FF" FACE="Arial" >     1. </FONT><A HREF="http://sandiego.sidewalk.msn.com/mbglaw?DONO=4" TARGET="_top" TITLE="http://sandiego.sidewalk.msn.com/mbglaw?">John C. Grier</A> is the managing principal of <FONT SIZE="2" COLOR="#0000FF" FACE="CaslonOpnface BT" >Mathews Bergen & Grier</FONT>, located at 1076 Broadway, El Cajon, CA 92021. Phone: (619) 298-2100. Fax: (619) 440-5043  <A HREF="mailto:mbglaw@flash.net" TARGET="_top" TITLE="mailto:mbglaw@flash.net">E-mail: mbglaw@cts.com.</A></div> </td> </tr></table></body>