With the dawn of the New Year, residents in Florida often take time to set goals for the year. Sometimes those goals include establishing an estate plan or updating their records for an existing plan. This is a useful time to evaluate estates because assets that have been separated during the course of a lifetime are centralized in an estate upon death. Laws govern the taxation of estates. Wills guide an estate executor and courts to distribute assets to heirs. Estate administration specialists believe the key to a smooth asset transition involves strategic long-term planning and vigilant estate plan maintenance.

The creation of an estate plan takes considerable effort, thought and review. Among the advisors needed to create a suitable estate plan are financial planners, tax specialists, brokers, accountants and an attorney who specializes in estate and estate tax matters.

The first step is an asset accounting, which requires more than adding up the current values of stocks, real estate, insurances and accounts. The worth of assets depends on the original price, the present fair market value and the projected appreciation of the property.

Determining the worth of a rental property or a business enterprise takes more than a best guess. It may be necessary to hire a valuation specialist to determine the value of an incoming-generating asset or the future expected worth of a business share.

A list of creditors should accompany the documented number and value of assets owned. How much a business owes to lienholders or vendors at the time of the proprietor's death will affect the asset's value at the time of inheritance.

Heirs must be named, including information about their lives. Financial and marital statuses, family ties and other personal information supplement the beneficiaries' list.

The naming of an estate executor is a priority. The person chosen should be trustworthy, desirable of the position and qualified to handle the tax and distribution responsibilities that accompany the job.

Financial and legal advisors can recommend how to plan and achieve the desired results of an estate plan. Events that may interrupt or slow down the administration process deserve proactive consideration.

Many estate plans have implementation schedules that distribute assets over time. These phases require separate legal documentation and secondary, back-up plans in case problems arise in the estate process.

Creating a will or trust are basic elements of an estate plan. Updating beneficiaries after significant life events and periodically revisiting goals are essential to an irrefutable estate plan.

Source: Kelowna Capital News, "Banka: Some important aspects of estate planning," Gabriele Banka, Dec. 29, 2011