| Estate planning has sometimes been called social work | | | | goals, however, involves far-reaching decisions which |
| among the rich. It is also described as a means of | | | | are going to affect your long-term objectives. Two of |
| passing from this world into the next without passing | | | | the five, your income and your home, have |
| through the Internal Revenue Service. | | | | ramifications which go deeper than their surface |
| These wry statements are more notable for their nice | | | | definitions. Not only do they help establish an estate; |
| grasp of the comic than for their accuracy of definition. | | | | they also establish a standard of living. This latter |
| In reality, estate planning is not limited to the rich but | | | | aspect usually operates to prevent or impede further |
| encompasses a broad group of society. Nor is its sole | | | | estate building. The simple decision of selecting a home, |
| concern the reduction of the tax impact | | | | for example, sets in motion complicated problems of |
| Do you want to get started on your estate planning | | | | estate creation. So too with the requirements of "living |
| program? Then you must mesh both the short- and | | | | up to one's career or income position." |
| long-term goals together, and you must not neglect | | | | We can illustrate these dynamics with a concrete |
| one for the other. You must actively plan for both | | | | example. A young friend of ours just bought a home. |
| present and future. | | | | He is 35 years old and, for his age, not just successful |
| All this sounds rather elementary and, philosophically | | | | but extremely successful. He's a salesman; clever, |
| speaking, it is. But when the philosophy is put into action, | | | | ambitious, and energetic. His income is presently |
| deep-seated problems appear. The trouble is that the | | | | $200,000 and he has every reason to believe that it |
| achievement of the current objectives is likely to | | | | will go much higher in the future. |
| interfere with and sometimes-in fact often-prevents | | | | He bought the home to take care of the needs of his |
| the realization of the long-term goals. | | | | family-a wife and three children. It is large and |
| Let's look at the problem of current support and | | | | expensive. He can afford the initial purchase price-that |
| security. When does a family have such security and | | | | is not the question. The question is, can he afford to |
| when doesn't it? A time-honored definition says that it | | | | maintain the standard of living that residence in this |
| starts with the establishment of five elements: a home, | | | | house, in this section of town, with these neighbors, will |
| that is, a place to live; an annual income, usually | | | | demand? He will need to hire domestic help; he will |
| secured by a job (often two, in dual income families); | | | | have to entertain and be entertained in a fairly |
| disability insurance to protect earned income from a | | | | luxurious style; he will acquire expensive tastes and so |
| prolonged illness or recovery from injury; a savings | | | | will his wife and children. The satisfaction of these |
| account, a reserve fund which can be drawn on in | | | | tastes will soon appear to be necessities and he will |
| case of emergency; and finally life insurance, a source | | | | work harder and earn more money to meet them. But |
| of future income if the planner should die. | | | | will he build an estate? |
| The manner in which you set about achieving these | | | | |