Essential Elements of a Comprehensive Estate Plan<br />TIMINS & LaMAGNA, LLP<br />399 Knollwood Road, Suite 300<br />White...
Ideal Clients<br />A Client with a Family Member who Recently Died<br />May be entitled to more money than they are being ...
Comprehensive Estate Planning<br />
Legal Documents<br />Last Will and Testament: <br /><ul><li> Distributes all assets that are NOT:
 Joint accounts
 Retirement plans
 Life insurance
 Business interests
Upcoming SlideShare
Loading in …5
×

Elements of a Comprehensive Estate Planning

1,459 views

Published on

This presentation shows some of the most basic elements of a comprehensive estate plan.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,459
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Elements of a Comprehensive Estate Planning

  1. 1. Essential Elements of a Comprehensive Estate Plan<br />TIMINS & LaMAGNA, LLP<br />399 Knollwood Road, Suite 300<br />White Plains, New York 10603<br />www.tllawoffices.com<br />_________________________________________________________________________________________<br />ATTORNEY ADVERTISING<br />
  2. 2. Ideal Clients<br />A Client with a Family Member who Recently Died<br />May be entitled to more money than they are being told<br />Any person or couple with over $1 million of Net Worth<br />Avoid or minimize New York Estate Taxes<br />Disabled clients or Clients with Disabled Children<br />Take advantage of government programs (SSI, Medicaid)<br />Young Parents<br />Establish choice of children’s guardians and establish financial safeguards<br />Clients with Beneficiaries who are Spendthrifts or Addicts<br />Protect money from beneficiary’s creditors<br />Divorced Clients / Clients in a Second Marriage<br />Establish distributive plan for specific children prior to death / disputes; fix “loose ends” from the marriage<br />Elderly Clients / Clients with Old Estate Plans<br />Update estate plan to reflect current desires<br />Clients without Children<br />Help determine an estate plan that benefits closest relatives<br />Same-Sex Couples / Unmarried Couples – “Partners”<br />“Partners” receive NOTING under State Law<br />Business Owners / People Owning Real Estate<br />May receive discounts on their estate taxes<br />Clients with Non-Citizen Spouses<br />Different estate planning Laws apply to non-citizens<br />Charitably Inclined Clients<br />Charities do NOT receive unless specifically mentioned in documents<br />
  3. 3. Comprehensive Estate Planning<br />
  4. 4. Legal Documents<br />Last Will and Testament: <br /><ul><li> Distributes all assets that are NOT:
  5. 5. Joint accounts
  6. 6. Retirement plans
  7. 7. Life insurance
  8. 8. Business interests
  9. 9. Assets held in Trust
  10. 10. Designates a beneficiary for minor and disabled children
  11. 11. Establishes Trusts that take effect AFTER you die
  12. 12. Completely public, overseen by the Surrogate’s Court</li></ul>Trusts<br /><ul><li> Can own property and use it to benefit the Creator of the Trust
  13. 13. At the Creator’s death the estate is distributed privately, funds can be used to help survivors immediately, and investment can continue
  14. 14. NO court intervention (unless there are serious disagreements)</li></ul>Living Documents<br /><ul><li>Allows your designated Agent to take care of your financial, burial and health care matters</li></ul>Deeds (to Real Estate)<br /><ul><li>Can be made out to individuals, couples, parents & children, LLCs, FLPs, etc.
  15. 15. ** Real Estate passed by a Trust MUST have the Trust named as owner on the Deed</li></li></ul><li>Gifts<br />Cash Gifts<br />You can gift $1 million plus $13,000 per year to anyone and everyone<br />Gifts to minors should be held in Trust, an UGMA or an UTMA to avoid a “Guardianship Proceedings” and avoid attachment by Creditors<br />** If the Custodian of an UGMA or UTMA dies the account’s value is included in their estate<br />** Any gift over $13,000 in one year REQUIRES an IRS Form 709 to be filed<br />529 Plans<br />Can be used to pay for almost ANY higher education expense (car, food, housing)<br />Grows tax deferred, withdrawn tax free, can be used for other family beneficiaries<br />** If the Donor does not name a successor to the 529 Plan or dies after front-laoding the Plan SOME or ALL of the value may be included in their gross estate<br />Health and Education Expenses<br />Any person can pay an unlimited amount of money for another person’s healtcare or higher education expenses<br />** The donor MUST pay the funds DIRECTLY to the health care or educational institution<br />
  16. 16. Accounts & Beneficiary Forms(1) Also know as “Testamentary Substitutes”(2) All Pass by a process called “Operation of Law”<br />Types of Accounts<br />Individual Property & “Tenant in Common” (passes by Will, Trust or Intestacy)<br />Joint Property – automatically passes at the death of the first owner<br />** NOT always! If a bank account passes to a non-spouse it is by default considered a “Convenience Account” unless account says “JTWROS” (and is included in the estate)<br />“Tenants by the Entirety” – Joint Property status only between two spouses while married<br />Life Insurance<br />There is (1) an owner, (2) an insured, and (3) beneficiaries<br />** A Trust can be an owner and / or a beneficiary, thereby protecting it from creditors, but it MUST be memorialized in the life insurance company’s paperwork<br />** Upon divorce an Ex-Spouse does NOT receive benefits from a Will, but DOES still receive the life insurance proceeds unless the forms are changed<br />Retirement Plans<br />Spouses are entitled to “Qualified Plan” benefits under Federal Law, but are only entitled to IRA benefits under State Law<br />** This is where most “General Practitioners” destroy an estate plan: By forgetting (or not knowing how) to properly fill out beneficiary designation forms<br />
  17. 17.
  18. 18. “Intestacy” (I.e. Dying without a Will)<br />Your clients have an estate plan already! New York decided it for you. But do they like it?<br />** REMEMBER: “Testamentary Substitutes” (Joint Property, Life Insurance, Retirement Accounts,<br />Trust Property and Business Interests (sometimes)) pass automatically by “Operation of Law” <br />

×