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As seen in Physician's Money Digest

Estate Plans Protect Your Loved Ones
By Richard K. Newman
Newman + Cohen Financial Management

When it comes to estate planning, many physicians procrastinate. Often, this ends up costing their loved ones and other heirs hundreds of thousands of dollars in taxes and professional fees that could have been avoided with proper planning.

Physicians should consult a team of trusted professionals that consists of lawyers, CPAs, and financial and life insurance representatives to develop a custom-tailored estate plan and financial strategy that includes: living trusts, a will, durable power of attorney, a living will, health care proxy, irrevocable trusts, and family limited partnerships. This team should present the physician with a wide range of alternatives to tailor the estate plan to fit the unique needs of the physician's family.

Here are a few tips on estate planning:

1.	Make a list of all your assets and liabilities to determine what your net worth would be upon your death. This figure should include such things as estate-includable life insurance proceeds, death benefits from retirement plans, and mortgage insurance that pays loan balances, as well as any applicable administrative costs, court costs, legal fees, probate expenses, and state-inheritance or estate taxes that will have to be paid when you die. Even if your estate is relatively small, your beneficiaries will have to pay a myriad of fees.
2.	Address nonfinancial issues surrounding your estate plan, such as who would take control of your estate in the event that the breadwinner becomes disabled or passes away. Managing an estate is a big responsibility, so make sure that the individual you select has the time and ability to handle it properly.
3.	Check retirement plans and insurance policies. Unless the estate has been named as the beneficiary, wills don't apply to beneficiaries on retirement plans, insurance policies, and other jointly held assets but will be taxed if not properly planned.
4.	Make sure that monetary gifts, especially to your children, are well documented. Otherwise, these gifts may be taxable when they should have easily avoided taxes.
5.	Choose a proper guardian for your minor children.
6.	Prepare and fund a living trust. If you should die unexpectedly without a funded living trust, your estate will end up in probate court.
7.	Make sure that the correct number of witnesses have notarized your will with all appropriate formalities. Laws vary from state to state, and beneficiaries should never sign as witnesses.
8.	Review existing estate plans in the event of a marriage or divorce, receipt of a significant amount of money, death of a spouse, birth or adoption of a child, or relocation to another state. Even if nothing in your life has changed, you should review your estate plan every year because laws governing wills and estates change frequently.

Especially in today's turbulent economy, physicians should consult trusted professionals to develop estate plans that meet their family's needs. Every dollar spent to pay estate taxes, court costs, and legal fees after your death will mean less money your beneficiaries will receive. Estate plans not only help physicians protect their loved ones' wealth, they also provide a priceless asset: peace of mind.

Richard K Newman is a director and founder of Newman and Cohen Financial Management; a financial services firm with offices in Boca Raton and Miami that offers advanced financial strategies and consulting services to individuals and businesses nationwide. Mr. Newman is a state-licensed life, health, and disability insurance agent and a registered representative of New England Securities. He welcomes questions and comments at 800-966-9306, or visit www.newman-cohen.com.

Newman + Cohen Financial Management and Regal Securities Inc. are not affiliated by ownership.
Securities offered through Regal Securities Inc., Member NASD/SIPC. 1-800-92-REGAL

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