• Save
Estate Planning and Managing Your Wealth
 

Estate Planning and Managing Your Wealth

on

  • 1,647 views

Module Ten for the Financial Freedom Series deals with the basics of estate planning and tips on how to manage your wealth (acquired in part by following the principles of this seminar series and ...

Module Ten for the Financial Freedom Series deals with the basics of estate planning and tips on how to manage your wealth (acquired in part by following the principles of this seminar series and reading "Family Financial Freedom". You can now view the presentation here, order the Family Financial Freedom book from any of the ebook sites for iPhone, iPad, Kindle, Nook, Kobo reader etc. contact me at floyd.saunders@yahoo.com for a copy of the presentation or more information on how to get seminar materials.

Statistics

Views

Total Views
1,647
Views on SlideShare
1,549
Embed Views
98

Actions

Likes
3
Downloads
0
Comments
0

5 Embeds 98

http://www.floydsaunders.com 73
http://floydsaunders.com.hostbaby.com 17
http://floydsaunders.com 4
https://twitter.com 3
http://personal-growth.floydsaunders.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • None of can plan for every event that might happen in our lives, but we can take charge of owning our financial future and developing a common sense plan to more financially secure.
  • Say you want to give your spouse $5 million (the exemption limit for 2012) — an irrevocable trust could help protect that gift from taxes. “If you put the funds in a trust for the spouse’s benefit, your husband or wife would still have access, but this action helps to avoid taxes at your death by applying your exemption, and the sum is not includable in the spouse’s estate when he or she dies.” This is called a shelter trust. Long-term irrevocable trusts for your children can also create tax savings, Cline says. “A trust set up today with $5 million could grow to be much larger by the time the grantor dies. That keeps future appreciation out of the estate by doing that during the grantor’s lifetime.” Unplanned claimants to funds: “Maybe you trust your child to manage the money, but if that child ever divorced, the property could wind up in the hands of an ex-spouse,” An irrevocable trust can help prevent that.

Estate Planning and Managing Your Wealth Estate Planning and Managing Your Wealth Presentation Transcript

  • Family Financial Freedom Seminars Passing On Your WealthSaunders Learning Group, LLC
  • Training from Saunders Learning Group Saunders Learning Group provides a variety of training programs, workshops and seminars targeted to the financial services industry. Programs are available in a wide range of topics, and we are specialists in developing custom programs that are targeted to your needs. Contact the founder, Floyd Saunders at 316-680-6482 or at floyd@floydsaunders.com for more information. Saunders Learning Group, LLC, Andover, KS Passing on Wealth2
  • AgendaSaunders Learning Group, LLC, Andover, KS Passing on Wealth
  • “In this world nothing can be said to be certain, except death and taxes.” Benjamin FranklinSaunders Learning Group, LLC, Andover, KS Passing on Wealth 4
  • Why You Need Estate Planning  Estate planning is a definite plan for the administration and disposition of property during both your lifetime and at death  Estate planning is an essential part of retirement planning and has two components —Build your estate through savings, investments, & insurance —Transfer your estate as you wish at death Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Why Estate Planning?(continued) Many people give little or no thought to putting their personal and financial affairs in order for their families that survive them Demands of daily living can keep people from thinking about death Plan while you are in good health Estate planning is especially important for nontraditional households Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • ESTATE PLANNING?Single Married, Blended Families  If you are single, designate a beneficiary and provide them with information about your estate.  If married, include spouse and children in estate planning process.  Step-families and blended families requires more effort and communication to insure everyone knows how your plan to provide for members of the family.  Newer lifestyles means different challenges, which means plan early and get expert help. Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Legal Aspects of Estate PlanningGather Necessary Documents Birth and marriage certificates Legal name changes Social Security documents Veteran documents Insurance policies Transfer records of joint bank accounts Safe-deposit box records Registration of automobiles Title to stock and bond certificates Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Wills – Do You Need One? A will is the legal declaration of a person’s mind as to the disposition of his or her property after death Transfers property according to your wishes at death State law determines distribution of assets if you die intestate (without a will) Marriage and divorce affect your will — Review your will with an attorney — Marriage may revoke your will Legal costs of a will vary. A standard will costs between $300-$400 An Online service can provide a basic will, if your life is more complex, see a lawyer. Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Types and Formats of Wills1. A simple will (or “I love you”) leaves everything to your spouse2. A traditional marital share will leaves half to spouse, half to children or heirs. Avoid probate3. An exemption trust will passes to your spouse except for an amount equal to the exemption, which passes into a trust. The trust can provide a lifelong income4. A stated dollar amount will a) Should use percentages, not actual dollar amounts. Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Formats of Wills  Holographic will — A will that you write, date and sign, entirely in your handwriting — May not be recognized in some states  Formal will — Usually prepared with attorney’s assistance. — You must sign & have two witnesses, neither of whom can be beneficiaries (people named to receive property).  Statutory will — Type of formal will on a pre-printed form. Has rigid provisions, may be not meet current laws, and may be invalid if you change provisions Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Selecting an Executor This person follows your instructions Find out if the person is willing to accept this major responsibility Find out if he or she is capable of the complicated tasks involved Person could be a family member, friend, attorney, accountant, or a bank representative If you don’t name one, the court will Executor’s fees are set by state law Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Responsibilities of an Executor  Take control of assets of the estate  File an inventory of assets and liabilities with the court  Liquidate assets if necessary to pay claims  Distribute assets, based on the instructions in the will  Make a final accounting to the court Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Selecting a Guardian If you have children, you need a will to name their guardian and/or trustee A guardian assumes the responsibility for providing the children with personal care and managing the estate for them Trustee will manage property for benefit of children Be sure the person would be willing to raise them and that their values match yoursSaunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Revising Your Will Review your will if there are major changes —If you have sold property mentioned in the will —If the size and composition of your estate have changed —If you have married, divorced or remarried —If new potential heirs have died or been born Add a codicil —A document that explains, adds or deletes provisions in your existing will. Consider a new will if making major changes Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Prenuptial Agreement Agreed upon prior to marriage Often waive a right to receive property under the other’s will of under state law You agree on a settlement if you should divorce Consult an attorney Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Living Will and Advance Directives Not a substitute for a traditional will Advance directives include the following: — A living will  Discuss your living will with those close to you, and your family doctor  Sign and date it before two witnesses  Give copies to those close to you — A health care proxy (durable power of attorney) — Letter of last instruction (after-death wishes) Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Ethical Will New type of will that is a way to pass on emotional and spiritual wealth to your heirs It is not a legally binding document A way to pass on your values and beliefs Share lessons you’ve learned in life Address any regrets Requires self-examination Writer and recipients say the results are an invaluable legacy Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Durable Power of Attorney Legal document authorizing someone to act on your behalf — Can be limited or gives a great deal of power — If you are unable to make decisions regarding your health care this authorizes someone to do it for you — (also known as a health care proxy) Letter of Last Instruction (after death wishes) — Not legally enforceable (in some states) — Provides heirs with information Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Types of Trusts and Estates A trust is a legal arrangement through which a trustee holds your assets for your benefit or that of your beneficiaries — Takes care of or manages your property — Distribute your assets to your heirs from the trust according to your will — All assets are taken out of your name and put in the name of the trust Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Types of Trusts and Estates  Trusts are either revocable or irrevocable — With a revocable trust you retain the right to end the trust or change its terms during your lifetime  May avoid the lengthy probate process  Does not provide shelter from federal or state estate taxes — You can not change the terms or end an irrevocable trusts  For tax purposes the trust becomes a separate entity  If a large estate, used to reduce estate taxes and avoids probate Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Benefits of trusts Reduce estate taxes avoid probate free you from managing assets provide income for a surviving spouse Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Types of Trusts and Estates Living or Inter Vivos -establish while you are alive Revocable living trusts  To help avoid probate, a potentially expensive and lengthy process. A revocable living trust may serve as a substitute for a will.  To designate someone to manage the grantors assets in case of incapacity. Testamentary -established by your will Credit-shelter -also called by-pass trust Disclaimer Trust — Surviving spouse inherits the full value of the estate, but can disclaim some portion which is transferred to a credit-shelter trust. Life Insurance Trust — A trust where the assets are derived from value of life insurance. Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Shelter or By Pass Trust Created for the purpose of helping to protect assets from circumstances that could reduce their value or impact ability to distribute funds — Gift or estate taxes - current law allows for $5 million to be exempt from taxes — Dueling beneficiaries - an irrevocable trust can help keep each party’s interests separate, thereby minimizing discord. (think second marriage etc.) — Unplanned claimants to funds - An irrevocable trust can help prevent claims to money in your estate, because the trust controls distribution. — Poor or inexperienced decision-making - Setting up a trust for younger children could help protect their best interests if the grantor dies while the beneficiaries are still minors. This type of protection also could apply to meeting the future needs of beneficiaries who are incapacitated. GSTT: generation skipping transfer tax Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Make an Inventory of Your Estate Bank accounts, CDs, money market funds Stocks, bonds and mutual funds Life insurance, employee benefits and annuities Your home, any other real estate Business interests, farm assets Money owed to you Interests and trusts Antiques, art, jewelry, collections, cars, and personal effects Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Community Property  Community property states — Community property is any property that has been acquired by either spouses during the marriage, but not by gift, bequest or inheritance Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Joint Ownership How property might be held — Spouses often own property as Joint Tenants With Right of Survivorship (JT/WROS) — The property will automatically pass to your spouse upon your death, with no estate tax paid at the first death — It is paid when surviving spouse dies Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Life Insurance andEmployee Benefits Life Insurance and Employee Benefits — Life insurance proceeds are free from probate and income tax — Unless payable to the estate, death benefits from qualified pension, profit sharing or Keogh plans are excluded from your estate Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • How You Estate May Be Taxed  Federal estate tax  Estate & trust federal income tax returns  State inheritance tax  Gift taxes  Tax avoidance and evasion  Charitable bequests  Calculating tax, debts and liabilities Saunders Learning Group, LLC, Andover, KS Passing on Wealth
  • QuestionsSaunders Learning Group, LLC, Andover, KS Passing on Wealth
  • Post Workshop Action Plan  Complete the Post Workshop Action Plan Saunders Learning Group, LLC, Andover, KS Passing on Wealth31
  • Reference Material Family Financial Freedom 140 pages ISBN 978-1-60-746269-9 Available Formats: 6"x9" paperback PDF download eBook download Link to order: http://www.fastpencil.com/publications/4498-Family-Financial-Freedom?tid=book Also available on Kndle, Nook, iPad and other popular e-readers can be ordered from Amazon or Barnes and Noble in paperback (available soon). Book summary: You might be struggling to make ends meet, but achieving true financial freedom is still possible. The good news is virtually anyone with a desire to learn and the willingness to plan can achieve a considerable degree of financial security. This book is a road map to the personal financial freedom you want and deserve. There are no quick-rich schemes here, just common sense advice on how to manage your money, protect your family from risks and start making the moves to being more financial secure.Saunders Learning Group, LLC, Andover, KS Passing on Wealth