0
The Importance of an Estate Plan (In Ten Minutes or Less) Jeffrey O’Brien Attorney at Law Mansfield Tanick & Cohen, P.A.
Why Do You Need an Estate Plan? <ul><li>If you don’t create one, the State does it for you (intestate succession laws are ...
The Basic Estate Plan <ul><li>Last Will and Testament </li></ul><ul><li>General Durable Power of Attorney (very broad powe...
What to do with the dogs (or cats) <ul><li>MN does  not  allow trusts for pets </li></ul><ul><li>Your will requires specia...
What About Trusts? <ul><li>Use of a  revocable trust  takes away the need to probate your estate </li></ul><ul><li>BUT:  m...
Irrevocable Life Insurance Trusts <ul><li>Life insurance proceeds are  non-probate assets </li></ul><ul><li>BUT:  life ins...
Planning for Business Owners <ul><li>Nothing specific in intestacy statutes regarding transfers of businesses or real esta...
Reviewing & Updating Your Estate Plan <ul><li>Marriage/Divorce </li></ul><ul><li>Death of a spouse </li></ul><ul><li>Child...
Our Process <ul><li>We give you a “homework assignment” – asset information, family information, your desires as to who ge...
Average Fees <ul><li>Will for single person:  $750.00 </li></ul><ul><li>Wills for married couple which create trusts for c...
Ideal Referral <ul><li>Mom & Dad </li></ul><ul><li>Yourselves </li></ul><ul><li>Family, friends </li></ul>
Questions? Thank You! [email_address] http://www.linkedin.com/in/jeffreycobrien http://www.facebook.com/obrienjeffrey http...
Upcoming SlideShare
Loading in...5
×

The Importance Of An Estate Plan

488

Published on

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

  • Be the first to like this

No Downloads
Views
Total Views
488
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
13
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "The Importance Of An Estate Plan"

  1. 1. The Importance of an Estate Plan (In Ten Minutes or Less) Jeffrey O’Brien Attorney at Law Mansfield Tanick & Cohen, P.A.
  2. 2. Why Do You Need an Estate Plan? <ul><li>If you don’t create one, the State does it for you (intestate succession laws are the “default estate plan”); this can lead to results you don’t want </li></ul><ul><li>Probate avoidance and estate tax minimization </li></ul><ul><li>Avoid family disputes </li></ul><ul><li>Appoint guardians for minor children </li></ul>
  3. 3. The Basic Estate Plan <ul><li>Last Will and Testament </li></ul><ul><li>General Durable Power of Attorney (very broad powers) </li></ul><ul><li>“Statutory Short Form” Power of Attorney (for financial matters) </li></ul><ul><li>Health Care Directive (your wishes on health care matters, especially treatment of terminal conditions) </li></ul>
  4. 4. What to do with the dogs (or cats) <ul><li>MN does not allow trusts for pets </li></ul><ul><li>Your will requires special language if you want to provide for someone to take care of your pets upon your death </li></ul>
  5. 5. What About Trusts? <ul><li>Use of a revocable trust takes away the need to probate your estate </li></ul><ul><li>BUT: make sure to fund the trust (i.e., re-title your assets in the name of the trust) </li></ul><ul><li>Easy to transfer assets to beneficiaries of a trust upon death of grantor </li></ul><ul><li>Private (probate – public proceeding through a court) </li></ul><ul><li>No tax benefit to a revocable trust </li></ul>
  6. 6. Irrevocable Life Insurance Trusts <ul><li>Life insurance proceeds are non-probate assets </li></ul><ul><li>BUT: life insurance proceeds are included in your taxable estate for estate tax purposes </li></ul><ul><li>Solution: irrevocable life insurance trust (ILIT); after the policy/policies have been in the trust for three (3) years, the death benefits will be excluded from your taxable estate </li></ul>
  7. 7. Planning for Business Owners <ul><li>Nothing specific in intestacy statutes regarding transfers of businesses or real estate </li></ul><ul><li>Buy-sell agreements funded with life insurance; owner dies, other owner(s) buy his interest with life insurance proceeds </li></ul><ul><li>Real estate: family limited partnerships (FLPs) with gifting program (and use of valuation discounts) allow transfers to children/grandchildren free of gift tax </li></ul>
  8. 8. Reviewing & Updating Your Estate Plan <ul><li>Marriage/Divorce </li></ul><ul><li>Death of a spouse </li></ul><ul><li>Children </li></ul><ul><li>Change in financial circumstances </li></ul><ul><li>Regular review and updating of your plan is a must in order to avoid unintended consequences! </li></ul>
  9. 9. Our Process <ul><li>We give you a “homework assignment” – asset information, family information, your desires as to who gets what, etc. </li></ul><ul><li>We review this information at no cost and give you a recommended plan and a fee quote for implementation of the plan </li></ul><ul><li>We work in tandem with, not exclusive of, your advisors (financial advisor, CPA) </li></ul><ul><li>In most circumstances, we charge flat fees for our estate plan work </li></ul>
  10. 10. Average Fees <ul><li>Will for single person: $750.00 </li></ul><ul><li>Wills for married couple which create trusts for children on parents’ death: $1,000.00 </li></ul><ul><li>Revocable trust for single person: $1,500.00 </li></ul><ul><li>Revocable trusts for married couple: $2,500.00 </li></ul><ul><li>Irrevocable Life Insurance Trusts: $1,000.00 for 1 set (husband & wife) </li></ul><ul><li>More complicated trusts: fees vary </li></ul><ul><li>COMPARED WITH: </li></ul><ul><li>AVERAGE COST OF PROBATE: $10,000.00 </li></ul><ul><li>Any estate plan costs less than not having one at all! </li></ul>
  11. 11. Ideal Referral <ul><li>Mom & Dad </li></ul><ul><li>Yourselves </li></ul><ul><li>Family, friends </li></ul>
  12. 12. Questions? Thank You! [email_address] http://www.linkedin.com/in/jeffreycobrien http://www.facebook.com/obrienjeffrey http://twitter.com/jeffobrien http://www.mansfieldtanick.com http://blog.jeffreyobrienesq.com 612.341.1263
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×