Sioux City Journal from Sioux City, Iowa • 31

I The Sioux City Journal. Saturday. May 9. 1981 B11 Estate planning very important But What If You Live? 4 f'J Many, if not most, estate plans should also include a trust arrangement, according to Learner. Under such an arrangement, a trustee manages the estate for the benefit of the heirs.

Learner says trusts should be used whenever the nature of the property requires good management, such as farmland. Learner advises that trusts also be used in the following cases: 1. if the estate is valued over $175,000 (the approximate point at which federal estate taxation begins); 2. if there are children to provide for; 3. if the surviving spouse or heirs don't care to manage the estate themselves.

Learner says many people, especially in the country, shy away from trusts because "they don't want some damn banker in Sioux City managing my farm." This fear of "outsiders" is not justified, in Learner's opinion. Trust officers are experts at management, he says, and they generally don't make any management decisions without first consulting the heirs and getting their consent. "They're business people," Learner says. "They know the laws. Why not hire an expert?" Preparing a will, then, might involve several professionals: an attorney, certainly; an insurance underwriter, probably, and perhaps a trust officer.

Learner says accountants are usually involved in drawing wills when it's necessary to assign values to property. A will can also be used to nominate guardians for minor children. Wills vary in price according to their complexity and the amount of property involved, Learner says. A simple will for a single person might cost $60. A pair of wills for a married couple with a small estate might cost $150.

Wills for those with large estates (over $175,000 and up) may cost several hundred dollars. Learner says it's necessary to review a will at least every few years. L2 VERLAJ.ELGERSMA Let life insurance benefit yoij nun Tor estate planning, ie-tirement planning and building collateral. Life Health Group By Tim Connolly Journal staff writer Who should have a will? "Everybody over 19 years of age," says Norris G. Learner, a South Sioux City attorney.

Preparing a will, also known as estate planning, basically involves determining how property is owned and to whom it should go when the owner dies. Having a will is a good way to avoid problems for your heirs, Learner says. "I would want to make a will to declare basically who my children are and my wife is in other words, who my heirs are." You would be surprised, he says, at the situations that can arise if specific provisions aren't made for distributing the estate. Learner has handled a couple of sad cases in which the couple thought they were married but legally were not; hence, no survivor receives no inheritence unless the marital relationship is affirmed In a will. If you don't decide in a will how your estate is to be handled, Learner says, the state will decide for you.

He points out that a surviving spouse still has the right to renounce a will and handle the inheritance otherwise. This is sometimes done for tax reasons. Many people think a will covers all a person's assets, but this isn't necessarily the case. A life insurance policy, for example, will be paid to the beneficiary named in the policy, no matter what arrangement is made in a will. Also, Learner says, a will only operates on property that you own alone.

In other words, you can't use your will to bequeath property in which you only share ownership. Auto Home i AC 712 729-3691 What isaC.L.U.? Norris G. Learner Attorney Learner says the big reason for estate planning is to avoid federal estate tax. And good planning can literally save a fortune. Good estate planning, for example, can save $85,000 in taxes on a $500,000 estate, Learner says.

The savings is accomplished by dividing the property between husband and wife and taking advantage of marital deductions in the estate tax. "Two estates pay less (tax) than one big one," he says. Life insurance plays a definite role in estate planning, according to Learner. An insurance policy should provide for the support of the spouse for three years, pay administration expenses, and cover the estate tax so the estate itself is left intact. CLU is the oldest and most demanding of the professional designations relating primarily to the life insurance sector of the financial planning field.

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