Estate Planning in North Dakota Getting Started
Do you have an Estate Plan? Yes you do! And if you don’t have a personal Estate Plan - - - North Dakota has one for you!
What is Estate Planning? “I want to control my property while alive, take care of my loved ones and myself if I become disabled, and, upon my death, give what I have to whom I want, the way I want, and when I want. And if I can, I want to save every last tax dollar, professional fee, and court cost possible.”
Basic Steps in Estate Planning Step 1 - Initiate the discussion Step 2 - Take inventory, evaluate the present Step 3 - Develop objectives Step 4 - Choose professional advisers Step 5 - Consider alternatives Step 6 - Review and modify
Take Inventory & Evaluate the Present Take A Complete Inventory Non-titled Property Real Property Financial Assets
Develop Objectives It is your estate Where do you want it to go? What do you want to accomplish?
Choose Professional Advisers Attorneys Accountants Financial Advisors Trust Officers Life Insurance Underwriters
What Your Attorney Should Know Personal Information Property Information Assets Insurance Accounts Receivable Liabilities Retirement Plans Location of Important Papers
Personal Representative Every estate plan needs as PR Name one in the will or trust Court will appoint PR if one is not named PR usually hires an attorney to assist in settling the estate
A Will . . . Distributes property after death Tells Who, How and When the property is distributed Names guardians Names a Personal Representative
Creating a Valid Will The Testatormust be 18 years of age Must be of sound mind Must not be under undue influence Must be in writing Must be signed with two witnesses present Signatures Notarized
Restrictions on Will A surviving spouse is entitled to at least 50% of assets (ND law) Property owned in Joint Tenancy with right of survivorship passes out side a will Assets with a beneficiary designation pass outside a will
Drafting a Will on your own Will templates (fill in the blank) Online options Software tools Holographic wills
If you have a Will do you have an Estate Plan? A will is important but it is just one tool used in planning an estate.
Estate Planning Tools A Will Property Ownership Beneficiaries Trusts Gifting Charitable Giving Prenuptial Agreement Durable Power of Attorney Power of Attorney for Health Care Living Will HIPAA Release Letter of Last Instructions Life Insurance
Property Ownership How property is owned is Estate Planning! Determines if it passes through a will Determines if it goes through probate
Sole Ownership One owner Total control of property Upon death the property goes to the owner’s gross estate Passed on through a will Needs to go through probate
Co-Ownership When two or more people hold legal title to a property Tenancy in common Joint tenancy
Life Estates and Remainder Interests Holders of a Life Estate share ownership with those who will receive the property after their death. Life tenants Remaindermen
What is Probate? Legal (court) procedure for settling an estate after someone dies Assists in the distribution of property Approves or appoints Personal Representative Notifies Creditors Inventories and appraises property Insures payment of taxes owed
Additions to Estate Plan Letter of last instructions Advance Directives (living will) Durable power for attorney for health care List for passing on tangible personal property
Review and Modify Review Estate Plan every 3 to 5 years When there is a major change in your life Changes in Tax Laws
Thank You! This presentation is not intended to be a substitute for legal advice.