Proper Estate Planning  is Essential Create  Peace of Mind  for Your Tomorrow …
What is   Estate Planning ? <ul><li>Estate Planning is Family Wealth Planning </li></ul>©2007  The Estate Plan
<ul><li>“ I’m Not Wealthy. </li></ul><ul><li>Why Should I Worry About </li></ul><ul><li>Estate Planning?” </li></ul>©2007 ...
<ul><li>70% of Americans Will  </li></ul><ul><li>Procrastinate Until It’s  </li></ul><ul><li>Too Late ! </li></ul>©2007  T...
*AARP   Estimates… <ul><li>The Next Generation will Lose More than  Two Billion Dollars Annually  to the Probate Process <...
*AARP   Estimates… <ul><li>In Some Cases, Attorney’s Fees Consume 20% or More of an Estate’s Value.  This is Especially Tr...
Events to  Avoid <ul><li>Probate </li></ul><ul><li>Outliving Your Income </li></ul><ul><li>Losing Control or Capacity </li...
Taxes to  Consider <ul><li>Capital Gains Tax </li></ul><ul><li>Federal Estate Tax </li></ul><ul><li>State Estate Tax </li>...
What is   Probate ? <ul><li>Advantages </li></ul><ul><li>Validates Your Will </li></ul><ul><li>Transfers Your Property </l...
What is   Probate ?  Continued… <ul><li>Disadvantages </li></ul><ul><li>Average Time of Probate is 12 - 18 Months, in whic...
©2007  The Estate Plan DO NOT PUT YOUR FAMILY’S LIFE ON HOLD! IT DOESN’T STOP THE BILLS AND YOUR ASSETS ARE FROZEN!
Your  Will  Cannot Help You In Life <ul><li>A Will is Only Effective After Death </li></ul><ul><li>It Can Do Nothing for Y...
What is  Living Probate ? <ul><li>Living Probate occurs when a person becomes incapacitated and cannot make decisions for ...
When this happens… <ul><li>The Court will Appoint a Conservator or Guardian to Make Decisions for You </li></ul><ul><li>It...
Anyone at Anytime Can Apply, Through a Legal Proceeding, to Handle the Financial and Personal Affairs of an Incompetent Pe...
Key  Estate Planning Solution <ul><li>By Establishing the Right Documents, such as: </li></ul><ul><li>Durable Power of Att...
3 Ways   to Pass Your Estate to Loved Ones <ul><li>Joint Tenancy </li></ul><ul><li>Last Will & Testament </li></ul><ul><li...
Joint Tenancy <ul><li>Two or More People Hold Title </li></ul><ul><li>At the Death of One Owner, the Entire Interest in th...
Joint Tenancy  Continued… <ul><li>Difficult to Remove Co-Owner(s), Refinance or Sell </li></ul><ul><li>Tax Problems </li><...
Last Will & Testament <ul><li>Advantages </li></ul><ul><li>Expresses Your Desires for Distribution of Assets </li></ul><ul...
Living Trust <ul><li>Protects Your Privacy </li></ul><ul><li>Preserves Your Assets </li></ul><ul><li>Passes Assets to Your...
Living Trust  Continued… <ul><li>Can be Changed at Any Time  by You  — Revocable </li></ul><ul><li>Easy to Set Up and Main...
Which  Do You Want  for Your Family? <ul><li>  </li></ul>©2007  The Estate Plan Will Probate Heirs <ul><li>ATTORNEYS </li>...
Remember, Federal Estate Taxes  Will Be Due: <ul><li>In Full </li></ul><ul><li>In Cash </li></ul><ul><li>In 9 Months </li>...
How is   Federal Estate Tax Determined? <ul><li>Gross Estate  –  Debt  +  Insurance  =  Taxable Estate </li></ul>©2007  Th...
Does the Federal Estate Tax Effect  You ? <ul><li>If, at this time, the Federal Estate Tax is less of a problem to most  <...
YES! <ul><li>Will Fully Utilize Two (2) Federal Estate Tax Exclusions (Married Couples) </li></ul><ul><li>Avoids the Time,...
Living Trust Benefits  Continued…   <ul><li>Retains Privacy—Private and Family Controlled </li></ul><ul><li>Requires No At...
<ul><li>However, </li></ul><ul><li>All Living Trusts and Estate Plans are Not Created Equal! </li></ul>©2007  The Estate P...
The Estate Plan   Advantages <ul><li>210+ Must-Have Provisions </li></ul><ul><li>Custom Drafted to Meet Your Needs </li></...
<ul><li>Every Revocable Living Trust  </li></ul><ul><li>Produced is a Complete  </li></ul><ul><li>Estate Planning Portfoli...
Advanced Planning & Asset  Protection  Techniques Available <ul><li>A/B/C Trusts – Q-TIP & Q-DOT </li></ul><ul><li>Asset M...
Consider Your  Options <ul><li>Option 1  – Do Nothing </li></ul><ul><ul><ul><li>Go Through Probate </li></ul></ul></ul><ul...
<ul><li>Now the Time Has Come to Decide: </li></ul><ul><li>Which Option is Right for You?  </li></ul>©2007  The Estate Plan
<ul><li>Thank You! </li></ul>©2007  The Estate Plan The information provided in this presentation should not be regarded a...
The   Passion   Behind the Symbol <ul><li>Proper estate planning is crucial in passing your estate to your heirs and preve...
Dan VanPatten Assure Financial Service (208)899-8799 dan@assurefinancialservice.com  ©2007  The Estate Plan
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Revocable Living Trusts

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Revocable Living Trusts

  1. 1. Proper Estate Planning is Essential Create Peace of Mind for Your Tomorrow …
  2. 2. What is Estate Planning ? <ul><li>Estate Planning is Family Wealth Planning </li></ul>©2007 The Estate Plan
  3. 3. <ul><li>“ I’m Not Wealthy. </li></ul><ul><li>Why Should I Worry About </li></ul><ul><li>Estate Planning?” </li></ul>©2007 The Estate Plan
  4. 4. <ul><li>70% of Americans Will </li></ul><ul><li>Procrastinate Until It’s </li></ul><ul><li>Too Late ! </li></ul>©2007 The Estate Plan If You Don’t Have A Will…Don’t Worry, The State Has One For You.
  5. 5. *AARP Estimates… <ul><li>The Next Generation will Lose More than Two Billion Dollars Annually to the Probate Process </li></ul><ul><li>Conservatively 4% to 10% of Every Estate will be Consumed by Probate Unless Proper Steps are Taken </li></ul>©2007 The Estate Plan *Report on Probate Consumer Perspectives and Concerns, Copyright 1989, AARP
  6. 6. *AARP Estimates… <ul><li>In Some Cases, Attorney’s Fees Consume 20% or More of an Estate’s Value. This is Especially True of Small Estates </li></ul><ul><li>For Estates of the Middle Class, Attorney and Personal Representative Fees Can Deplete Assets by as Much as 10%, Even in Uncomplicated Cases </li></ul>©2007 The Estate Plan *Report on Probate Consumer Perspectives and Concerns, Copyright 1989, AARP
  7. 7. Events to Avoid <ul><li>Probate </li></ul><ul><li>Outliving Your Income </li></ul><ul><li>Losing Control or Capacity </li></ul>©2007 The Estate Plan
  8. 8. Taxes to Consider <ul><li>Capital Gains Tax </li></ul><ul><li>Federal Estate Tax </li></ul><ul><li>State Estate Tax </li></ul><ul><li>Income Tax </li></ul><ul><li>Generation Skipping Tax </li></ul>©2007 The Estate Plan
  9. 9. What is Probate ? <ul><li>Advantages </li></ul><ul><li>Validates Your Will </li></ul><ul><li>Transfers Your Property </li></ul><ul><li>After Debts are Paid (Including Probate and Legal Fees) </li></ul><ul><li>Changes the Name on Titled Assets from the Decedent to the Heirs </li></ul>©2007 The Estate Plan Probate is a legal process
  10. 10. What is Probate ? Continued… <ul><li>Disadvantages </li></ul><ul><li>Average Time of Probate is 12 - 18 Months, in which Assets are Frozen </li></ul><ul><li>Consumes 4% - 10% of the Total Estate </li></ul><ul><li>Probate Can Consume as Much as 75% of Your Estate* </li></ul>©2007 The Estate Plan *1992 Study of the Average Cost and Average Length of Probate in the State of Washington Done by Peterson Consulting Ltd. Partnership
  11. 11. ©2007 The Estate Plan DO NOT PUT YOUR FAMILY’S LIFE ON HOLD! IT DOESN’T STOP THE BILLS AND YOUR ASSETS ARE FROZEN!
  12. 12. Your Will Cannot Help You In Life <ul><li>A Will is Only Effective After Death </li></ul><ul><li>It Can Do Nothing for You if You Become Incapacitated </li></ul>©2007 The Estate Plan
  13. 13. What is Living Probate ? <ul><li>Living Probate occurs when a person becomes incapacitated and cannot make decisions for themselves </li></ul>©2007 The Estate Plan
  14. 14. When this happens… <ul><li>The Court will Appoint a Conservator or Guardian to Make Decisions for You </li></ul><ul><li>It Might Not be Your Spouse or Even One of Your Children </li></ul><ul><li>The Appointed Conservator: </li></ul><ul><li>Will typically be an Officer of the Court </li></ul><ul><li>Must Maintain Separate Checking Accounts </li></ul><ul><li>Must Post a Bond </li></ul><ul><li>Must Maintain Ongoing Accounting & Legal Fees </li></ul><ul><li>  </li></ul>©2007 The Estate Plan
  15. 15. Anyone at Anytime Can Apply, Through a Legal Proceeding, to Handle the Financial and Personal Affairs of an Incompetent Person ©2007 The Estate Plan
  16. 16. Key Estate Planning Solution <ul><li>By Establishing the Right Documents, such as: </li></ul><ul><li>Durable Power of Attorney for Assets </li></ul><ul><li>Durable Power of Attorney for Health Care </li></ul><ul><li>Nomination of Conservator </li></ul><ul><li>Living Will </li></ul>©2007 The Estate Plan You are Able to Decide Whom will Make Your Decisions if You Become Incompetent
  17. 17. 3 Ways to Pass Your Estate to Loved Ones <ul><li>Joint Tenancy </li></ul><ul><li>Last Will & Testament </li></ul><ul><li>Living Trust </li></ul>©2007 The Estate Plan
  18. 18. Joint Tenancy <ul><li>Two or More People Hold Title </li></ul><ul><li>At the Death of One Owner, the Entire Interest in the Asset Passes Automatically to the Survivor </li></ul><ul><li>This can be a problem if both owners die in the same accident </li></ul><ul><li>Only Postpones Probate Until the Death of the Last Joint Tenant </li></ul><ul><li>Married Couples will Forfeit One Federal Estate Tax Exclusion </li></ul><ul><li>Causes Unintentional Disinheriting </li></ul>©2007 The Estate Plan
  19. 19. Joint Tenancy Continued… <ul><li>Difficult to Remove Co-Owner(s), Refinance or Sell </li></ul><ul><li>Tax Problems </li></ul><ul><li>If a child is named in Joint Tenancy, that act may trigger Gift Taxes </li></ul><ul><li>Lawsuits </li></ul><ul><li>The joint tenant’s liability could consume your assets through suit or divorce </li></ul><ul><li>Appreciated Assets Lose the Benefit of the Step-Up in Basis at Death </li></ul>©2007 The Estate Plan
  20. 20. Last Will & Testament <ul><li>Advantages </li></ul><ul><li>Expresses Your Desires for Distribution of Assets </li></ul><ul><li>Disadvantages </li></ul><ul><li>Does Not Control the Distribution of Assets </li></ul><ul><li>Guarantees Probate will Occur </li></ul><ul><li>Is Not Valid Until Probate Court Approves It </li></ul><ul><li>Only Effective After Your Death </li></ul><ul><li>Public Record </li></ul><ul><li>Easily Contested </li></ul>©2007 The Estate Plan
  21. 21. Living Trust <ul><li>Protects Your Privacy </li></ul><ul><li>Preserves Your Assets </li></ul><ul><li>Passes Assets to Your Family Quickly and Efficiently </li></ul><ul><li>Avoids </li></ul><ul><li>- Living Probate in Case of Incapacity (through ancillary documents) </li></ul><ul><li>- Death Probate </li></ul><ul><li>Reduces Federal Estate Taxes and Capital Gains Taxes </li></ul>©2007 The Estate Plan
  22. 22. Living Trust Continued… <ul><li>Can be Changed at Any Time by You — Revocable </li></ul><ul><li>Easy to Set Up and Maintain </li></ul><ul><li>Allows You to Appoint a Person to Manage Your Business or Guardian to Raise Your Children </li></ul><ul><li>Provides for Minor Children, Grandchildren, or Children with Special Needs </li></ul><ul><li>Protects Your Desires from Being Contested </li></ul>©2007 The Estate Plan
  23. 23. Which Do You Want for Your Family? <ul><li>  </li></ul>©2007 The Estate Plan Will Probate Heirs <ul><li>ATTORNEYS </li></ul><ul><li>1—2 YEAR DELAYED </li></ul><ul><li>DISTRIBUTIONS </li></ul><ul><li>PUBLIC DISCLOSURE OF YOUR </li></ul><ul><li>ASSETS, DEBTS AND HEIRS </li></ul><ul><li>MAXIMUM NEGATIVE </li></ul><ul><li>EMOTIONAL IMPACT ON </li></ul><ul><li>FAMILY </li></ul><ul><li>COURT APPROVED </li></ul><ul><li>GUARDIANS AND/OR </li></ul><ul><li>CONSERVATORS </li></ul><ul><li>EXPENSIVE PROBATE FEES </li></ul><ul><li>MAXIMUM ESTATE TAXES </li></ul><ul><li>EASILY CONTESTED </li></ul><ul><li>TOTALLY PUBLIC AND COURT </li></ul><ul><li>CONTROLLED </li></ul>Living Trust Heirs <ul><li>NO ATTORNEYS </li></ul><ul><li>NO COURT CONTROL </li></ul><ul><li>NO PROBATE </li></ul><ul><li>NO HASSLES </li></ul><ul><li>NO DELAYS </li></ul><ul><li>NO UNNECESSARY TAXES </li></ul><ul><li>NO-CONTEST CLAUSE </li></ul><ul><li>YOU APPOINT GUARDIANS </li></ul><ul><li>YOU APPOINT CONSERVATORS </li></ul><ul><li>DUAL FEDERAL ESTATE TAX </li></ul><ul><li>EXEMPTIONS FOR COUPLES </li></ul><ul><li>TOTALLY PRIVATE AND </li></ul><ul><li>FAMILY CONTROLLED </li></ul>
  24. 24. Remember, Federal Estate Taxes Will Be Due: <ul><li>In Full </li></ul><ul><li>In Cash </li></ul><ul><li>In 9 Months </li></ul><ul><li>Up to 46% </li></ul>©2007 The Estate Plan Federal Estate Tax Exclusion Year Exclusion 2001 $675,000 2002 $1,000,000 2003 $1,000,000 2004 $1,500,000 2005 $1,500,000 2006 $2,000,000 2007 $2,000,000 2008 $2,000,000 2009 $3,500,000 2010 Repealed 12-31-10 2011 $1,000,000
  25. 25. How is Federal Estate Tax Determined? <ul><li>Gross Estate – Debt + Insurance = Taxable Estate </li></ul>©2007 The Estate Plan
  26. 26. Does the Federal Estate Tax Effect You ? <ul><li>If, at this time, the Federal Estate Tax is less of a problem to most </li></ul><ul><li>Is the Living Trust Still Beneficial? </li></ul>©2007 The Estate Plan
  27. 27. YES! <ul><li>Will Fully Utilize Two (2) Federal Estate Tax Exclusions (Married Couples) </li></ul><ul><li>Avoids the Time, Cost and Agony of Probate </li></ul><ul><li>Protects Individual’s Assets Upon Incompetency </li></ul><ul><li>Provides the Means to Organize the Estate </li></ul><ul><li>Provides for Disabled Children </li></ul><ul><li>Protects Children by Appointing a Guardian </li></ul><ul><li>Establishes a Conservator in the Event of Incompetency </li></ul>©2007 The Estate Plan
  28. 28. Living Trust Benefits Continued… <ul><li>Retains Privacy—Private and Family Controlled </li></ul><ul><li>Requires No Attorneys or Court Procedures are required to Settle the Estate </li></ul><ul><li>Protects Against Estate Contest </li></ul><ul><li>Protects Decedent’s Assets for Decedent’s Beneficiaries </li></ul><ul><li>Protects Separate Property </li></ul><ul><li>Once the Trust Becomes Irrevocable , it may Protect Assets from Litigation, Creditors, and potentially Medicaid Claims </li></ul>©2007 The Estate Plan
  29. 29. <ul><li>However, </li></ul><ul><li>All Living Trusts and Estate Plans are Not Created Equal! </li></ul>©2007 The Estate Plan
  30. 30. The Estate Plan Advantages <ul><li>210+ Must-Have Provisions </li></ul><ul><li>Custom Drafted to Meet Your Needs </li></ul><ul><li>Legal, Binding, and Applicable in Every State </li></ul><ul><li>Nationwide Network of Estate Planning Professionals </li></ul><ul><li>Personal Attention and Life-Long Customer Service (800#) </li></ul><ul><li>The Means to Settle the Estate Swiftly and Reasonably </li></ul><ul><li>Have Been in Business 25 Years </li></ul>©2007 The Estate Plan
  31. 31. <ul><li>Every Revocable Living Trust </li></ul><ul><li>Produced is a Complete </li></ul><ul><li>Estate Planning Portfolio </li></ul><ul><li>for Organizing Your Estate. </li></ul>©2007 The Estate Plan The Estate Plan Trust
  32. 32. Advanced Planning & Asset Protection Techniques Available <ul><li>A/B/C Trusts – Q-TIP & Q-DOT </li></ul><ul><li>Asset Management Trust </li></ul><ul><li>Beneficiary Trust </li></ul><ul><li>Catastrophic Illness Trust </li></ul><ul><li>Charitable Remainder Trust </li></ul><ul><li>Debt Payment Power of Appointment </li></ul><ul><li>Generation Skipping Trust </li></ul><ul><li>Gift Trust </li></ul><ul><li>Irrevocable Insurance Trust </li></ul><ul><li>Partner Trust </li></ul><ul><li>Separate Property Agreement </li></ul><ul><li>Trust Protector </li></ul><ul><li>5 Different IRA Trusts </li></ul>©2007 The Estate Plan
  33. 33. Consider Your Options <ul><li>Option 1 – Do Nothing </li></ul><ul><ul><ul><li>Go Through Probate </li></ul></ul></ul><ul><ul><ul><li>Assets will Distribute According </li></ul></ul></ul><ul><ul><ul><li>to State Rules </li></ul></ul></ul><ul><li>Option 2 – Last Will & Testament </li></ul><ul><ul><ul><li>Go Through Probate </li></ul></ul></ul><ul><li>Option 3 – Living Trust </li></ul><ul><ul><ul><li>Avoid Probate </li></ul></ul></ul><ul><ul><ul><li>Fully Utilize Your Entire Estate Tax Exclusion </li></ul></ul></ul><ul><ul><ul><li>After Estate Taxes, Pass Your ENTIRE Estate to Your Heirs </li></ul></ul></ul>©2007 The Estate Plan
  34. 34. <ul><li>Now the Time Has Come to Decide: </li></ul><ul><li>Which Option is Right for You? </li></ul>©2007 The Estate Plan
  35. 35. <ul><li>Thank You! </li></ul>©2007 The Estate Plan The information provided in this presentation should not be regarded as legal, financial or tax advise. Every effort has been made to ensure that the information in this presentation is accurate. However, in the field of estate planning, even accurate information can become outdated quickly as IRS, Medicaid, Congressional and state policies shift. This presentation is intended to provide only general information regarding estate planning and to provide education regarding appropriate estate planning documents that may be suitable for different fact situations.
  36. 36. The Passion Behind the Symbol <ul><li>Proper estate planning is crucial in passing your estate to your heirs and preventing the unnecessary loss of your hard earned assets. </li></ul>©2007 The Estate Plan The Estate Plan Mission : Dedicated to providing fail-proof solutions for estate preservation, asset protection and peace of mind, from generation to generation, backed by caring service, unparalleled education and a lifetime of support.
  37. 37. Dan VanPatten Assure Financial Service (208)899-8799 dan@assurefinancialservice.com ©2007 The Estate Plan

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