needs to look at estate planning to pass his assets onto the right family members in the event of his death. He won’t have to worry about estate taxes because his estate is just under half a million dollars. At some point, Young will also need to add life insurance as a part of his estate plan. However, it makes more sense for him to develop a living trust to hold and manage his property and assets. Dunagan notes that assets transferred in a trust are immediately available to his heirs, saving them the time and expense of probate court. Unlike a will, a trust cannot be contested.
Financial Snapshot: John Young
|
HOUSEHOLD INCOME |
|
| Gross Income | $51,000 |
|
ASSETS |
|
| Market Value of Apt. Bldg. | $350,000 |
| Savings | 40,000 |
| 401(k) Retirement Plan | 40,000 |
| Emergency Fund for Apt. Bldg. | 23,000 |
| Mutual Fund | 21,000 |
| Checking Account | 12,000 |
| IRA | 2,000 |
| Total | $488,000 |
|
LIABILITIES |
|
| Mortgage | $58,000 |
| NET WORTH | $430,000 |