Basic Estate Planning


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Basic information on Estate Planning

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  • Basic Estate Planning

    1. 1. Estate Planning Basic Estate Planning Workshop
    2. 2. What Is An Estate?
    3. 3. Why Do Estate Planning? <ul><li>After Death </li></ul><ul><ul><li>Control Who Receives Assets </li></ul></ul><ul><ul><li>Pay Minimum Legal Fees, Taxes </li></ul></ul><ul><li>At Incapacity </li></ul><ul><ul><li>Control Assets, Medical Decisions </li></ul></ul>
    4. 4. A.D.D. <ul><ul><li>Alive </li></ul></ul><ul><ul><li>Disabled </li></ul></ul><ul><ul><li>Deceased </li></ul></ul>
    5. 5. Common Estate Plans <ul><ul><li>Will </li></ul></ul><ul><ul><li>Doing Nothing </li></ul></ul><ul><ul><li>Joint Ownership </li></ul></ul><ul><ul><li>Giving Away Assets </li></ul></ul><ul><ul><li>Beneficiary Transfers </li></ul></ul><ul><ul><li>Revocable Living Trust </li></ul></ul>
    6. 6. Probate <ul><ul><li>Assets Titled in Just Your Name Go Through Probate </li></ul></ul>PROBATE Probate Fees Taxes Beneficiaries
    7. 7. Giving Away Assets <ul><ul><li>You Lose Control </li></ul></ul>
    8. 8. Stepped-Up Basis <ul><ul><li>Lifetime Gifts (Your Basis) </li></ul></ul><ul><ul><li>Selling Price $150,000 </li></ul></ul><ul><ul><li>Basis - 10,000 </li></ul></ul><ul><ul><li>Gain $140,000 </li></ul></ul><ul><ul><li>Capital Gains Tax $ 28,000 </li></ul></ul>
    9. 9. Stepped-Up Basis <ul><ul><li> Lifetime Gifts Transfers At Death </li></ul></ul><ul><ul><li>(Your Basis) (New, Stepped-Up Basis) </li></ul></ul><ul><ul><li>Selling Price $150,000 $150,000 </li></ul></ul><ul><ul><li>Basis - 10,000 -150,000 </li></ul></ul><ul><ul><li>Gain $140,000 $ 0 </li></ul></ul><ul><ul><li>Capital Gains Tax $ 28,000 $ 0 </li></ul></ul>
    10. 10. Beneficiary Transfers <ul><li>Court Interference if Beneficiary: </li></ul><ul><ul><li>Incapacitated </li></ul></ul><ul><ul><li>Dies First or at Same Time </li></ul></ul><ul><ul><li>“ My Estate” </li></ul></ul><ul><ul><li>Minor </li></ul></ul>
    11. 11. Keeping Control with a Revocable Living Trust
    12. 12. Expenses That Reduce Your Estate Probate Estate Taxes Income Taxes
    13. 13. Tax Relief Act of 2001 EGTRRA 2001 <ul><ul><li>2002 & 2003 $1,000,000 </li></ul></ul><ul><ul><li>2004 & 2005 $1,500,000 </li></ul></ul><ul><ul><li>2006 - 2008 $2,000,000 </li></ul></ul><ul><ul><li>2009 $3,500,000 </li></ul></ul><ul><ul><li>2010 Estate and GSTT repealed </li></ul></ul><ul><ul><li>2011 to 2013 $5,000,000 </li></ul></ul>
    14. 14. Choices in Estate Planning <ul><ul><li> No Joint Simple Power of Living </li></ul></ul><ul><ul><li> Will Tenancy Will Attorney Trust </li></ul></ul><ul><ul><li>Avoid Guardianship? </li></ul></ul><ul><ul><li>Avoid Probate on the 1st Death? </li></ul></ul><ul><ul><li>Avoid Probate on the 2nd Death? </li></ul></ul><ul><ul><li>Control the Distribution on the 1st Death? </li></ul></ul><ul><ul><li>Control the Distribution on the 2nd Death? </li></ul></ul><ul><ul><li>Provide the Maximum Tax Savings? </li></ul></ul>No No No No No No No Yes Yes Yes Yes No No No No Yes Yes Yes Yes No No No No No Yes Yes Yes Yes Yes Yes
    15. 15. What is an Estate Plan? <ul><ul><li>A Trust Agreement </li></ul></ul><ul><ul><li>“ Pour Over” Will </li></ul></ul><ul><ul><li>Durable Power of Attorney </li></ul></ul><ul><ul><li>Durable Power of Attorney for Health Care </li></ul></ul><ul><ul><li>Living Will </li></ul></ul><ul><ul><li>Trust Amendments (Trust Minutes) </li></ul></ul><ul><ul><li>Quit Claim Deed </li></ul></ul><ul><ul><li>Trust Execution & Management Instructions </li></ul></ul>
    16. 16. The Actual Process <ul><ul><li>Complete the Data Form and schedule an appointment to review your Data. </li></ul></ul><ul><ul><li>The attorney will prepare a draft of your Living Trust for your review and approval. </li></ul></ul><ul><ul><li>Upon your approval of the draft, the final copy of your Living Trust will be prepared for signing. </li></ul></ul><ul><ul><li>Upon your Execution of your Personal Family Living Trust , your Estate Planning Team will assist you in the FUNDING of your Trust ! </li></ul></ul>
    17. 17. Thanks for Attending
    18. 18. Estate Planning <ul><li>Presented by </li></ul><ul><li>Arthur J. Pauly, Jr. J.D. Esq. </li></ul><ul><li>916-207-7526 </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul>
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