Guest Column: Use estate planning to protect assets, children

People spend a lifetime building personal assets. Naturally, most would like to have some control over the future of their hard-earned capital, but that control isn't automatic.

Establishing a will is the first step in determining the fate of belongings. The only one who can control a person's estate and ensure it will go to the people they want - when they want - is the asset owner.

The best way to gain control of the future is with a sound estate plan. In fact, an estate plan that includes properly drawn trusts can ensure all intentions for family and estate assets are carried out.

Here are some specific objectives that can be accomplished with a thorough estate plan.

Benefit loved ones or charities

Every estate plan is intended to benefit others. Beneficiaries can be a spouse, children, a parent, another relative, a friend or a charity - or even be a combination of these. With an estate plan, individuals may choose to provide for their beneficiaries through the creation of a trust or by making outright gifts, either while they are living or at time of death. Individuals may have particular assets they wish to designate for certain people or preserve regardless of circumstances. Likewise, there may be specific ways a person wants the assets they have accumulated to be used after their death. An estate plan can help ensure that specific objectives and wishes are accomplished.

Protect minor children

It is important to nominate a guardian to care for minor children in the event of an unexpected death. By naming a guardian in a will, the probate court will be more inclined to honor the person's wishes. If no guardian is designated, the court will select one without guidance.

An estate plan also can set up trusts to care for children's financial needs while they are minors, or beyond, if desired.

Achieve substantial tax savings

An estate plan also can help reduce tax bills. The advantage of saving taxes, however, must be weighed against the possible disadvantages involved in distributing assets to accomplish those savings. A good plan should take into account its tax impact on the parties who will receive the assets.

Eliminate probate

Generally, assets owned in one person's name at death are subject to probate, a name for the legal process necessary to determine the validity of a will and to administer the assets of an estate. Legal costs are involved in probate, as well as delays in distributing assets.

Probate records are available for public inspection, allowing anyone access to private asset and family information.

Assets that are jointly held and assets held in a trust are usually exempt from probate. Owning joint assets, however, may increase federal estate tax, increase the risk that assets will be subject to the claims of creditors of the joint owner, interfere with property distribution and restrict an individual's freedom to deal with the property while still living.

To avoid probate while minimizing taxes, all or part of an individual's assets can be placed in trust while they are still living, either under a "self declaration of trust," where the person is the initial trustee and a professional third-party is the successor trustee, or under an agreement in which the professional third-party acts as trustee.

Estate planning is something that many procrastinate about or avoid altogether, but it is a critical process for anyone who has assets to consider. Estate planning is truly an opportunity for individuals to take control of futures as well as the futures of their beneficiaries.

Estate planning can be difficult, but employing a professional can turn a seemingly impossible task into an efficient and well-executed plan that ensures the client's wishes are clearly stated and carried out when needed.Jim Brock is a senior vice president and senior trust advisor for UMB Bank's Investment and Wealth Management division in Springfield.