Planning for Retirement and Your Estate Plan
Upcoming SlideShare
Loading in...5

Like this? Share it with your network

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Planning for Retirement andYour Estate PlanOctober 24, 2012Presented by:Gregory M. Wirt, Esq.Fox Rothschild LLP
  • 2. Estate Planning Objectives Plan for disability or incapacity  Financial decisions  Medical decisions Develop a plan for distribution of your assets  Who, What, When and How  Minimize exposure to estate, inheritance and income tax liability
  • 3. Estate Planning Considerations Consider who should handle your medical and financial decisions if you are not able to act Provide for your family members – spouse, children, grandchildren, step-children, parents and siblings Coordinate your estate plan among your Will, beneficiary designations and the titling of your assets
  • 4. Effect of a Lack of Estate Planning Statutory or Court appointment of agents for medical and financial decisions Intestacy = State imposed plan Estate may be required to pay unnecessary taxes and expenses
  • 5. Estate Planning Documents Durable General Power of Attorney Living Will and Health Care Power of Attorney (Advance Health Care Directive) Will
  • 6. Planning for Incapacity Durable General Power of Attorney  Appointment of agent  Power to manage your finances  Indicate powers granted to your agent  Name a successor agent  Durable v. Springing Power of Attorney
  • 7. Planning for Incapacity Living Will  Instruct your health care providers and family members regarding life sustaining treatment Health Care Power of Attorney  Appoint an agent to make health care decisions on your behalf
  • 8. Distribution of Assets at Your Death Probate v. Non-Probate Assets  Direct transfer  Beneficiary Designations (401(k), IRAs and other retirement accounts)  Life Insurance  Joint ownership  Tenants by the Entireties  Joint Tenants with Right of Survivorship  Tenants in Common  Trusts
  • 9. Will Appoint your Executor Distribution of Assets  Personal Property  Specific Bequests – Family or Charity  Residue Should a trust be a part of your plan? Estate and inheritance tax saving strategies
  • 10. Will Your Will is influenced by:  Personal circumstances and your goals  Type and value of assets  Tax planning considerations Review your estate plan every 3 to 5 years or upon the occurrence of certain events  Move to a different state  Marital status changes  Youngest child becomes an adult  Change executor, guardian or trustee  Changes to laws that affect your estate  Changes in the value of your estate
  • 11. Federal Estate Tax  Tax imposed at the time of death based on the value of the estate  Assets left to a charity or spouse (U.S. citizen) are exempt  Life insurance is included in the value of the estate
  • 12. Federal Estate TaxTax Exemption Limits & Maximum Tax Rates Estate tax Maximum estate and Year of death exemption gift tax rate 2009 $3,500,000 45% 2010 No limit/ 45% $3,500,000 2011 $5,000,000 35% 2012 $5,120,000 35% 2013 $1,000,000* 55%*
  • 13. State Taxes Pennsylvania Inheritance Tax  Spouse – exempt  Parents, children, grandchildren – 4.5%  Siblings – 12%  Others (nieces, nephews, friends, etc.) – 15%  Charities – exempt New Jersey Estate and Inheritance Tax  Estate tax imposed on estates above $675,000 – variable rate  Inheritance Tax  Class A beneficiaries (spouse, civil union partners, children and grandchildren) – exempt  Siblings – 11% - 16%  Others – 15% - 16%
  • 14. Goals of Estate Planning Completes your financial plan Plan for your incapacity and health care decisions Plan for your incapacity and financial decisions Develop a plan to distribute your assets and provide for your family Minimize tax exposure
  • 15. Contact Information Gregory M. Wirt, Esquire Fox Rothschild LLP 747 Constitution Drive, Suite 100 Exton, PA 19341-0673 610-458-3113