YOUR GUIDE TO WILLS,     TRUSTS &     ADVANCED    DIRECTIVES      PRESENTED BY: DANIEL A. TIMINS, ESQ, CFP®
DISCLAIMER All information contained in these pages is for informational purposes only. It should not be considered legal...
“GROSS ESTATE”EVERYTHING   YOU   OWN
GROSS ESTATENON-   PROBATE ESTATE What does not pass through your              will              vs.  PROBATE          E...
NON-PROBATE ESTATE•   Life Insurance•   IRA, 401(k), pension plan, Keogh, 403(b)•   Contracts (e.g. pre-nuptial,    partne...
PROBATE ESTATE - YOUR       WILL Everything that is not in your non-probate estate
NOTHING IN YOUR NON-   PROBATEESTATE IS PARTOF YOUR WILL.
MAKE SURE YOU DO    YOUR ESTATEPLANNING USING YOURENTIRE GROSS ESTATE, NOT JUST WHAT GOES THROUGH YOUR WILL
YOU HAVE A    WILL  WHETHER  YOU HAVEWRITTEN ONE   OR NOT
YORK STATES WILL FOR         YOU1. Spouse Only - 100%2. Spouse & Children - $50,000 to spouse+   50%/50% spouse and childr...
THOSE DENIED IN THE       STATES WILL FOR YOU 1.   Those relatives not in line in the    priority list 2. Organizations...
PROBLEM•   The Surrogate’s Court handle’s people’s    “Probate Estate” (and more)•   It also requires your Executor to leg...
GIFT TAXES: EXCLUSIONS SPOUSES:    Can transfer unlimited amounts during life (& at death) HEALTH   & EDUCATION: Can pay...
HOW MUCH ARE ESTATETAXES? FEDERAL      GOVERNMENT                         Rate for $$$ Year          Exclusion     In  Ex...
HOW MUCH ARE ESTATE             TAXES?•   New York Estate Tax•   Exclusion     Rate $$$$ above•   $1,000,000    ~10%-17%• ...
HEALTH CARE PROXY•   Designates a person to:    •   make medical decisions for you if you are        unable to do so    • ...
LIVING WILL Can   be within the Health Care Proxy States       what you would like to happen to you if you cannot make y...
LIVING WILL   Sample language:   I feel especially strongly about the following forms of    treatment:    I  do not wan...
DURABLE GENERAL     POWER OF ATTORNEY•   Designate a person or persons to    manage your financial affairs.•   Designates ...
TRUSTSDefinition:A Trust is a legal entity which allows a person(s) (or institution) to own assets for the benefit of anot...
PARTIES TO A     TRUST          GRANTOR           ASSETS           RULES          THE IRSTRUSTEE             BENEFICIARY
EXAMPLES OF TRUSTS•   Living Trust – Revocable - no tax benefit•   Credit Shelter Trust - avoids some estate    taxes (use...
WILLS V. TRUSTS - PROSWills                    Trusts• Less Expensive to      • No Court Involvement  Draft• No Additional...
WILLS V. TRUSTS - CONSWills                         Trusts• Public Document Upon        • Additional expense to  Death    ...
DRAFTING LEGAL       DOCUMENTSSee a lawyer who focuses onEstate Planning before draftingdocuments
QUESTIONS?????       DANIEL A. TIMINS, Esq., CFP®7 Penn Plaza               399 Knollwood RoadSuite 310                  S...
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Estate Planning Basics

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Estate Planning Basics

  1. 1. YOUR GUIDE TO WILLS, TRUSTS & ADVANCED DIRECTIVES PRESENTED BY: DANIEL A. TIMINS, ESQ, CFP®
  2. 2. DISCLAIMER All information contained in these pages is for informational purposes only. It should not be considered legal advise. Please consult an attorney before taking any steps based on this information.
  3. 3. “GROSS ESTATE”EVERYTHING YOU OWN
  4. 4. GROSS ESTATENON- PROBATE ESTATE What does not pass through your will vs. PROBATE ESTATE What goes through your will
  5. 5. NON-PROBATE ESTATE• Life Insurance• IRA, 401(k), pension plan, Keogh, 403(b)• Contracts (e.g. pre-nuptial, partnership)• Joint Accounts and real estate, bank & brokerage accounts• TOD, ITF, Totten Trusts• Trusts
  6. 6. PROBATE ESTATE - YOUR WILL Everything that is not in your non-probate estate
  7. 7. NOTHING IN YOUR NON- PROBATEESTATE IS PARTOF YOUR WILL.
  8. 8. MAKE SURE YOU DO YOUR ESTATEPLANNING USING YOURENTIRE GROSS ESTATE, NOT JUST WHAT GOES THROUGH YOUR WILL
  9. 9. YOU HAVE A WILL WHETHER YOU HAVEWRITTEN ONE OR NOT
  10. 10. YORK STATES WILL FOR YOU1. Spouse Only - 100%2. Spouse & Children - $50,000 to spouse+ 50%/50% spouse and children3. Children - 100%4. Parents - 100%5. Siblings - 100% (Nieces and Nephews)6. Grandparents - 100%7. Aunts + Uncles - 100%8. Cousins - 100%
  11. 11. THOSE DENIED IN THE STATES WILL FOR YOU 1. Those relatives not in line in the priority list 2. Organizations and Institutions 3. Specific Gifts to Specific People 4. Life Partners 5. Friends 6. Business Partners 7. Pets
  12. 12. PROBLEM• The Surrogate’s Court handle’s people’s “Probate Estate” (and more)• It also requires your Executor to legally cite your closest blood relatives.• If you don’t know where (or who) they are, this will delay the probate process.• If you don’t know where or who they are, put all the assets you can into non- probate accounts.
  13. 13. GIFT TAXES: EXCLUSIONS SPOUSES: Can transfer unlimited amounts during life (& at death) HEALTH & EDUCATION: Can pay any and every “US Person’s” H&E Expenses  (MUST be paid to institution) ANNUAL EXCLUSION: Can pay to any and every US Person every year 2012: $13,000 2013: $14,000
  14. 14. HOW MUCH ARE ESTATETAXES? FEDERAL GOVERNMENT Rate for $$$ Year Exclusion In Excess 2012 $5,000,000 35% Beyond ??? $1,000,000 55%? Charitable deduction--unending Marital deduction—unending provided spouse is a U.S. citizen
  15. 15. HOW MUCH ARE ESTATE TAXES?• New York Estate Tax• Exclusion Rate $$$$ above• $1,000,000 ~10%-17%• Charitable deduction--unending• Marital deduction—unending• There is NO New York Gift Tax
  16. 16. HEALTH CARE PROXY• Designates a person to: • make medical decisions for you if you are unable to do so • have access to medical records• Allows gifts of “anatomical remains"• Also designates a second person in case the first person is unavailable.• Be selective in who you choose.
  17. 17. LIVING WILL Can be within the Health Care Proxy States what you would like to happen to you if you cannot make your own health care decisions and: 1. You are in a terminal condition; or 2. You are permanently unconscious; or 3. You are conscious but have irreversible brain  damage and will never regain the ability to  make decisions and express your wishes. Theseconditions are sometimes referred to as "a vegetative state."
  18. 18. LIVING WILL Sample language: I feel especially strongly about the following forms of treatment: I do not want mechanical respiration.  I do not want tube feeding.  I do not want antibiotics.  I do not want cardiac resuscitation. I do want maximum pain relief, even if such treatment hastens my death. I direct that treatment be limited to measures to keep me comfortable and to relieve pain, including any pain that might occur by withholding or withdrawing treatment.
  19. 19. DURABLE GENERAL POWER OF ATTORNEY• Designate a person or persons to manage your financial affairs.• Designates also what areas of your finances you are giving control over.• Beware: This is a blank check. The person you designate could take all of your money. They could go to jail for it, but the money may have disappeared before they are caught.
  20. 20. TRUSTSDefinition:A Trust is a legal entity which allows a person(s) (or institution) to own assets for the benefit of another. The assets are always in the name of the trust. The “Trustee” is the owner, the person who benefits is the “Beneficiary.” The owner is not free to use the assets except according to the provisions of the Trust. A Trust can be set up within a Will or on its own.
  21. 21. PARTIES TO A TRUST GRANTOR ASSETS RULES THE IRSTRUSTEE BENEFICIARY
  22. 22. EXAMPLES OF TRUSTS• Living Trust – Revocable - no tax benefit• Credit Shelter Trust - avoids some estate taxes (uses spousal estate tax exemption)• Trust for Minor Children• Supplemental Needs Trust for a disabled person (minors & adults)• Medicaid Asset Protection Trust (for adults with substantial assets)• Q-Tip Trust• Irrevocable Life Insurance Trust
  23. 23. WILLS V. TRUSTS - PROSWills Trusts• Less Expensive to • No Court Involvement Draft• No Additional Action • Private Between Grantor, or Expenses Trustee & Current Beneficiary• No other action • Continuity of Asset Usage required until death Upon Incapacity • Faster Distributions at Death • Can Receive Life Insurance & Retirement Plan Benefits • Creditor Protection for
  24. 24. WILLS V. TRUSTS - CONSWills Trusts• Public Document Upon • Additional expense to Death Create the Document• Additional Paperwork • Requires Changing Required at Death Accounts and Beneficiary Forms to Trust’s name• Court Fees and Legal Fees• Approval of Surrogate’s Court Required• Public “Inventory” with Court showing ALL Estate assets
  25. 25. DRAFTING LEGAL DOCUMENTSSee a lawyer who focuses onEstate Planning before draftingdocuments
  26. 26. QUESTIONS????? DANIEL A. TIMINS, Esq., CFP®7 Penn Plaza 399 Knollwood RoadSuite 310 Suite 300New York, NY 10001 White Plains, NY 10603(212) 683-3560 (914) 819-0663Email: dtimins@tllawoffices.comWeb Site: www.tllawoffices.comBlog: nyestateblog.wordpress.com

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