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Financial Focus: Estate Planning and Aretha Franklin

Some of you might know that besides operating a financial service firm, I am also a college professor on Personal Finance.
This summer, I taught a course on estate planning. And, as in all my classes (and client meetings), I like to use real examples.
In this case, let’s take Aretha Franklin, the Queen of Soul who passed away recently. Did you know she had four sons? Did you know that the family has a very active niece? Did you know she was worth $80 million? More importantly, why didn’t she prepare for her death and protect her estate and family belongings?
BECAUSE SHE DIED WITHOUT A WILL!
And yes, when one leaves without a will, what you have done is allow others to try to determine what your last intent was. And no, it’s not a family decision. It’s the decision by the Probate Court and its judges.  Probate Court also means that this process is now open to the public, for anyone to make a claim on the assets. A judge will determine the credibility of those claims, not the family!
And without proper “wealth transfer planning,” Uncle Sam will be waiting for her. And based on the lack of planning involved thus far, Uncle Sam will be waiting with a 40 percent price tag.
And let’s not forget Detroit Probate Court, which must pay the staff and the judges salaries to administer the estate (10 to 30 percent). These are fees, not taxes.
And Detroit state government coffers will be waiting for their estate tax as well.
Thus, it is impossible that even before the family receives any bequeaths, over 60 percent or more of the estate could be lost to taxes and fees.
And yes, did I mention the “active” niece?
In it’s simplest form, estate planning is a method of tools and strategies to transfer wealth accumulation to love ones, charity, or whomever you would like.
When you die without a will, it’s not so simple!

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance , Anthony can be reached at  (347) 575-5045Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney

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