Winning the Estate Planning Game Presented by Karen Brady Attorney at Law

Estate Planning Overview Most Estate Plans Just Don’t Work!

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

Estate Planning Overview Definition of Estate Planning I Want to Control My Property While I’m Alive and Well; Plan for Me and My Loved Ones if I Become Disabled;

Estate Planning Overview Definition of Estate Planning Give What I Have To Whom I Want When I Want The Way I Want With Controlled Settlement Costs Fully Disclosed in Advance

Definition of Estate Planning

Give What I Have

To Whom I Want

When I Want

The Way I Want

With Controlled Settlement Costs Fully Disclosed in Advance

Estate Planning Overview The Planning Pyramid Focuses on Client Goals “ Solutions” Make Planning Easier Exposes Traditional Planning as “ Upside Down”

Focuses on Client Goals

“ Solutions” Make Planning Easier

Exposes Traditional Planning as

“ Upside Down”

Estate Planning Overview The Life Circle Considers all Aspects of Client’s True Wealth

Considers all Aspects of Client’s True Wealth

Pieces of a Successful Estate Plan Your Wishes

C.A.R.e Planning  Estate Planning Overview Work with a Counselling Oriented Attorney Establish and Maintain a Formal Updating Program Assure Controlled Settlement Costs After Your Death

Work with a Counselling Oriented

Attorney

Establish and Maintain a Formal

Updating Program

Assure Controlled Settlement Costs

After Your Death

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

Estate Planning Overview Traditional Documents Used Will Trust (Testamentary) Powers of Attorney Financial Health Care Living Will “ Trust” Documents Used Will (Pour-over) Trust (Living) Powers of Attorney Financial Health Care Living Will

Traditional

Documents Used

Will

Trust (Testamentary)

Powers of Attorney

Financial

Health Care

Living Will

“ Trust” Documents Used

Will (Pour-over)

Trust (Living)

Powers of Attorney

Financial

Health Care

Living Will

The State’s Plan For You Myth: State inherits when you don’t have a will Spouse and/or children inherit, portion to each if blended family. Grandchildren inherit from deceased child No spouse or children, look to descendants of ancestors (siblings, etc.)

Myth: State inherits when you don’t have a will

Spouse and/or children inherit, portion to each if blended family. Grandchildren inherit from deceased child

No spouse or children, look to descendants of ancestors (siblings, etc.)

“Typical” Estate Plan · All to surviving spouse · When both gone, divided among children

“Typical” Estate Plan · All to surviving spouse · When both gone, divided among children · If a child predeceases, divided among that child’s children (my grandchildren)

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

“Typical” Disability Planning · 2 doctors to determine if incompetent · Surviving spouse serves as agent/trustee in event of disability

“Typical” Disability Planning · 2 doctors to determine if incompetent · Surviving spouse serves as agent/trustee in event of disability

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

Family Trust Trustee Instructions: Mandatory Payment of Income to Beneficiaries Family

Trustee Instructions:

Mandatory Payment

of Income to

Beneficiaries

Family Trust Trustee Instructions: Mandatory Withdrawal Rights “ 5 & 5” Power Family

Trustee Instructions:

Mandatory Withdrawal Rights

“ 5 & 5” Power

Estate Planning Overview Proper Asset Ownership Control of Process What to Do How to Do It How to Pay for It Keys to an Effective Estate Plan

Proper Asset Ownership

Control of Process

What to Do

How to Do It

How to Pay for It

Estate Planning Overview EVERYTHING IN ESTATE PLANNING COMES DOWN TO TITLE! Tax Savings Personal Protections Catastrophic Illness Protection Catastrophic Creditor Protection Remarriage Protection Divorce Protection

EVERYTHING IN ESTATE PLANNING COMES DOWN TO TITLE!

Tax Savings

Personal Protections

Catastrophic Illness Protection

Catastrophic Creditor Protection

Remarriage Protection

Divorce Protection

Estate Planning Overview Three Types of Title Individual Name Joint Name Contract Beneficiary Designation Trust

Three Types of Title

Individual Name

Joint Name

Contract

Beneficiary Designation

Trust

Estate Planning Overview INDIVIDUAL NAME equals WILL equals PROBATE!

INDIVIDUAL NAME

equals

WILL

equals

PROBATE!

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

Funding The Available Individual Name Assets Living Trust Assets Beneficiary Designations Payable to Trust Not Available Joint Assets Beneficiary Designations Payable to Individuals Estate Plan

Available

Individual Name Assets

Living Trust Assets

Beneficiary Designations Payable to Trust

Not Available

Joint Assets

Beneficiary Designations Payable to Individuals

C.A.R.e Planning  Three Types of Change an Estate Plan Faces Changes in Your Personal Situation Personal Financial

Three Types of Change an Estate Plan Faces

Changes in Your Personal Situation

Personal

Financial

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

C.A.R.e Planning  Three Types of Change an Estate Plan Faces Changes in the Legal Environment Tax Non-Tax (Personal Protections)

Three Types of Change an Estate Plan Faces

Changes in the Legal Environment

Tax

Non-Tax (Personal Protections)

Pieces of a Successful Estate Plan Your Wishes Documentation The Law

C.A.R.e Planning  Three Factors of Overall Cost The Cost of the Documents The Cost of Updating (Or Failing to Update) The Cost After Death Transfer of Assets Death Tax Return Preparation

Three Factors of Overall Cost

The Cost of the Documents

The Cost of Updating

(Or Failing to Update)

The Cost After Death

Transfer of Assets

Death Tax Return Preparation