Preparing forThe Death of a Loved One Presented by WealthTrust-Arizona And Colby & Thornes
Avoiding the topic of deathThinking you are immortal                             Children Aren’t proteCted from  Thinking ...
Planning Before Death: Important First Steps                    Organize and CommunicateBoth Spouses Should Meet with Advi...
Prepare Your Survivors            Organizing & Communicating• Know where to locate important documents and financial recor...
Prepare Your Survivors          Complete Your Survivor’s Journal• Provides Pertinent Information for the Death Certificate...
Prepare Your Survivors           Memorial or Funeral ServiceImmediate Tasks for You or Your Funeral Director:•Notifying Vi...
Preparing For Memorial or Funeral Service                                                            Funeral or Memorial  ...
Planning Before Death: Estate Planning Options           Die With         Die Without           Written            Written...
Planning Before Death: Who Goes to Probate?                       Die Intestate                        (without a         ...
Planning Before Death Occurs: How to Avoid Probate    Create a        • Fund Your Trust   Revocable        • Jointly Owned...
Planning Before Death:    Beneficiary Designation Choices to Avoid Probate                         Surviving              ...
What to do After Death:         Death Administration Regardless of Plan Type         Revocable                   or       ...
What to do After Death:First Death Administration with a Trust or Will                                            Probate ...
What to do After Death:    First Death Administration with a Trust or Will      Revocable        TrustSurvivor’s   Deceden...
Preparing for the Death of a Loved One The Changing Estate Tax Law                                                Maximum ...
What to do After Death:    First Death Administration with a Trust or Will                               Complex Estate Ad...
What to do After Death:First Death Administration with a Trust or Will                                Simple Estate   Revo...
What to do After Death:                 First Death Administration with a Trust or Will             Revocable             ...
What to Do After Death:Distributions to Beneficiaries - Outright and Free From Trust                Revocable             ...
What to Do After Death     Distributions to Beneficiaries - Beneficiary Trusts                                            ...
Preparing for the Death of a Loved One The Changing Estate Tax Law                                                Maximum ...
What Happens After Death             Depends on What You Do Before Death Avoiding the Topic of Death Leaves Your Survivor...
Practical Tips      23
Staying Organized: Dealing With Your Finances               Upon the Death of a Loved One•Reevaluate your budget•Reevaluat...
Staying Organized: Dealing With Your Estate Plan         Upon the Death of a Loved One     Review and/or Update your Estat...
Staying Organized: Dealing With Taxes    Upon the Death of a Loved One File Final Federal Income Tax Return     File State...
Questions?    27
On Behalf of All of Us at     Thank you             28
DISCLOSURE PAGE• Securities offered through Purshe Kaplan Sterling  Investments, member FINRA/SIPC, Headquartered at  18 C...
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WealthTrust-Arizona - Preparing for the Death of a Loved One

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WealthTrust-Arizona understands it is difficult to address the topic of death. We have put together a presentation to help you prepare for when you or a loved one passes on. We also made a free "Survivor's Journal" to accompany this presentation. The journal will walk you through the steps you will need to take to be prepared. Visit wealthtrust-arizona.com for the free download.

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Transcript of "WealthTrust-Arizona - Preparing for the Death of a Loved One"

  1. 1. Preparing forThe Death of a Loved One Presented by WealthTrust-Arizona And Colby & Thornes
  2. 2. Avoiding the topic of deathThinking you are immortal Children Aren’t proteCted from Thinking your estate creditors plan takes advantage of ArizonA’s lAws survivors don’t hAve and benefits Inexperienced document drafter enough informationOne Spouse handles everything Are you concerned about Trusts unfundedWith little communication the surviving spouse taking over at first death? How have you put your assets in your trust? Have I Trust not compliant with current laws protected my children? Beneficiary designations not Is my estateproperly drafted plan up to date? Children are unprotected from divorces
  3. 3. Planning Before Death: Important First Steps Organize and CommunicateBoth Spouses Should Meet with Advisors Both Spouses Should Understand Your Budget Stress Test Financial & Estate Plan Both Spouses Should Understand Cash Flow Prepare Survivor’s Journal Financial Information Medical Information Legal Information Insurance Information Advisor Information Funeral & Burial Information Plan Your Funeral Prepare a Letter of Instructions to Let Loved Prepay Expenses Ones Know Your Wishes 3
  4. 4. Prepare Your Survivors Organizing & Communicating• Know where to locate important documents and financial records -birth and marriage certificates -life insurance policies -trust documents•Set up a filing system -review and sort documents by topic and/or account/asset -set up a separate file for each topic -store files in a safe but accessible place•Set up phone and mail systems -Phone: keep a notebook to record incoming and outgoing calls. Record the date, caller’s name, description of the conversation, next steps, etc. -Mail: record mail received and sent. Keep copies of all incoming and outgoing mail. Note the date and address of all responses 4
  5. 5. Prepare Your Survivors Complete Your Survivor’s Journal• Provides Pertinent Information for the Death Certificate -Personal Information -Family Information• Provides Crucial Information for Loved Ones to Understand Finances -Outlines Bank and Brokerage Accounts -Outlines Automatic Deposits and Debits -Identifies Brokerage Account Log In Information and Passwords• Provides Quick Access to Personal Information -Email Accounts and Passwords -Social Networking Accounts and Passwords -Location of Important Documents (i.e. safety deposit box, safes, etc.) 5
  6. 6. Prepare Your Survivors Memorial or Funeral ServiceImmediate Tasks for You or Your Funeral Director:•Notifying Vital Statistics (obtaining Death Certificates)•Obtaining Legal Authorizations for Final Disposition•Preparing and Publishing Obituaries•Scheduling Services, Visitations and Receptions•Coordinating Burial with Cemetery•Notifying Social Security•Coordinating State-to-State Burial Transfers 6
  7. 7. Preparing For Memorial or Funeral Service Funeral or Memorial Personal Information Benefit Information Final Disposition Preferences• Age • Military Service • Military/Fraternal/ • Family Burial Plot• Age of Spouse • Date of Enlistment Religious • Scattering• Date of Birth • Date of Discharge • Funeral Home • Mausoleum Entombment• Occupation • Branch • Clergy • Memorialization• Education • Service Number • Music, Readings, etc. Preferences• Father’s Name • Pallbearers• Mother’s Maiden Name • Special Requests• Social Security Number • Clothing/Jewelry, etc.• Citizenship • Casket/Urn• Birthplace • Burial Vault• Father’s Birthplace • Flowers• Mother’s Birthplace 7
  8. 8. Planning Before Death: Estate Planning Options Die With Die Without Written Written Instructions Instructions Intestate (no written Trust instructions) Arizona State Statute Writes a Will For You Will 8
  9. 9. Planning Before Death: Who Goes to Probate? Die Intestate (without a written plan) Die with Trust Die With a Unfunded Will (Pour Over Will) Go to Exception: $50,000 or Less Probate Total Estate Can Pass After Death by Affidavit 9
  10. 10. Planning Before Death Occurs: How to Avoid Probate Create a • Fund Your Trust Revocable • Jointly Owned Property Can Be Controlled by the Survivor Trust • Pour Over Will Minimizes Probate Avoid • IRAs (Beneficiary Designation) Probate Pass Assets • • Employer Sponsored Plans (Beneficiary Designation) Life Insurance (Beneficiary Designation) By Operation • • Annuities(Beneficiary Designation) Rights of Survivorship Deeds or Beneficiary Deeds • Jointly Owned Accounts and/or Rights of of Law Survivorship Accounts • Payable/Transfer on Death Accounts 10
  11. 11. Planning Before Death: Beneficiary Designation Choices to Avoid Probate Surviving Spouse **Helpful Hint** Naming Your Trust as your Beneficiary Should ONLY be done with the help of your AttorneySpouse/Children Children/Direct Combination Beneficiary **Helpful Hint** Incorrectly drafted Beneficiary Designations can result in accelerated payment of income taxes Properly Properly Drafted Trust Drafted Trust for for the benefit of the benefit of a Children/Beneficiaries Spouse 11
  12. 12. What to do After Death: Death Administration Regardless of Plan Type Revocable or Last Will and Trust Testament Arrange for Date of Death File Life Implement Apply forNotify Social Valuations for Insurance Beneficiary Government Security all Property Claims Designations and/orImmediately Request Form Prepare New Survivor’sOrder At Least • Appraisals of Benefits or Real Property 712 from Beneficiary 10 Death Benefits for Insurance Designations Certificates • Estate Val for Minors Company as necessary All CUSIPs 12
  13. 13. What to do After Death:First Death Administration with a Trust or Will Probate Last Will and • Executor Must File Pleadings with the Testament Court to Be Authorized to Control Assets • Executor is Fiduciary • Executor Must Gather, Value and Notify the Probate Court of All Estate Assets - Probate Assets are Public Record All to • Executor Must Notify Creditors • Executor Must Keep an Inventory of All Survivor Estate Assets and Expenses • Distribute Assets to Beneficiaries 13
  14. 14. What to do After Death: First Death Administration with a Trust or Will Revocable TrustSurvivor’s Decedent’s Trust Trust 14
  15. 15. Preparing for the Death of a Loved One The Changing Estate Tax Law Maximum Estate Year of Transfer Estate Tax Exemption & Gift Tax Rate 2001 $675,000 55% 2002 $1,000,000 50% 2003 $1,000,000 49% 2004 $1,500,000 48% 2005 $1,500,000 47% 2006 $2,000,000 46% 2007 $2,000,000 45% 2008 $2,000,000 45% 2009 $3,500,000 45% 2010 Estate Tax Repealed 35% (gifts only) 2011 $5,000,000 35% 2012 $5,000,000 35% 2013 $1,000,000 55% 15
  16. 16. What to do After Death: First Death Administration with a Trust or Will Complex Estate Administration Revocable • Contact Your Financial Advisor and Lawyer Trust to Arrange a Meeting • Notify Beneficiaries within 30 Days • Obtain Date of Death Values for All Assets • Prepare and File Estate Tax ReturnSurvivor’s Decedent’s • Obtain Taxpayer Identification Numbers; Retitle Assets to Survivor’s and Decedent’s Trusts Trust Trust • File Annual Tax Returns for Both Trusts 16
  17. 17. What to do After Death:First Death Administration with a Trust or Will Simple Estate Revocable Administration Trust • Contact Your Financial Advisor and Lawyer to Arrange a Meeting • Obtain Date of Death Values for All Assets • Remove the Decedent as Trustee All to • Update All Assets and Accounts Under the Survivor’s Social Survivor Security Number • Consider Disclaimer Trust For Benefit of Spouse 17
  18. 18. What to do After Death: First Death Administration with a Trust or Will Revocable Revocable Last Will and Trust Trust TestamentSurvivor’s Decedent’s All to All to Trust Trust Survivor Survivor ProbateComplex Estate Administration Simple Estate • Executor Must File Pleadings with the• Contact Your Financial Advisor and Lawyer Court to Be Authorized to Control Assets to Arrange a Meeting Administration • Executor is Fiduciary• Notify Beneficiaries within 30 Days • Contact Your Financial Advisor • Executor Must Gather, Value and Notify• Obtain Date of Death Values for All Assets and Lawyer to Arrange a Meeting the Probate Court of All Estate Assets - Probate Assets are Public Record• Prepare and File Estate Tax Return • Obtain Date of Death Values for All Assets • Executor Must Notify Creditors• Obtain Taxpayer Identification Numbers; • Executor Must Keep an Inventory of All Retitle Assets to Survivor’s and Decedent’s •Remove the Decedent as Trustee Estate Assets and Expenses Trusts • Update All Assets and Accounts Under the Survivor’s Social • Executor Must Distribute Assets to• File Annual Tax Returns for Both Trusts Beneficiaries and Account to Court Security Number • Consider Disclaimer Trust For Benefit of Spouse 18
  19. 19. What to Do After Death:Distributions to Beneficiaries - Outright and Free From Trust Revocable Trust Outright and Free From Trust • Assets Owned and Taxed in Child’s Estate • Assets Subject to Creditor’s Claims including Claims in a Divorce • Upon Child’s Death Assets Pass in Accordance with Child’s Estate Plan Outright to Outright to (presumably to spouse) Child 1 Child 2 19
  20. 20. What to Do After Death Distributions to Beneficiaries - Beneficiary Trusts Benefits of Beneficiary Trusts • Creditor Protection Revocable •Divorce Protection – Automatic Prenuptial Agreement Trust • Preserve Estate Tax and GST Exemptions • Flexibility for Transfers to Grandchildren • Protect Children who Need Additional AssistanceBeneficiary Trust for Beneficiary Trust for Child 1 Child 2 Administration of Beneficiary Trusts for Children and Grandchildren • Notify Beneficiaries of Trust Creation in Writing Within 30 Days Beneficiary Trust for Beneficiary Trust for • File Death Tax Return Grandchild 1 Grandchild 2 • Obtain Date of Death Values for all Assets • Obtain Taxpayer Identification Numbers for Subtrusts • Liquidate Assets as Necessary and Fund Subtrusts • Trustee Controls Trust Property • Trustee Files Annual Tax Return 20
  21. 21. Preparing for the Death of a Loved One The Changing Estate Tax Law Maximum Estate Year of Transfer Estate Tax Exemption & Gift Tax Rate 2001 $675,000 55% 2002 $1,000,000 50% 2003 $1,000,000 49% 2004 $1,500,000 48% 2005 $1,500,000 47% 2006 $2,000,000 46% 2007 $2,000,000 45% 2008 $2,000,000 45% 2009 $3,500,000 45% 2010 Estate Tax Repealed 35% (gifts only) 2011 $5,000,000 35% 2012 $5,000,000 35% 2013 $1,000,000 55% 21
  22. 22. What Happens After Death Depends on What You Do Before Death Avoiding the Topic of Death Leaves Your Survivors Struggling to Pick Up the Pieces Trusts Not Compliant with Current Laws Add Complexity for your Beneficiaries Trusts Unfunded Can Result in Unnecessary Probates Beneficiary Designations Not Properly Drafted Can Cause Accelerated Income Taxes Not Protecting Children can Result in Loss of Inheritance to a divorce, taxes or even creditors Tax Laws Are Moving Targets Now 22
  23. 23. Practical Tips 23
  24. 24. Staying Organized: Dealing With Your Finances Upon the Death of a Loved One•Reevaluate your budget•Reevaluate your investments, your goals and your risk tolerance•You will need one original certificate per account/asset•Discuss the benefits of consolidating assets and/or accounts•Do not deposit or cash social security checks•Once you notify financial institutions, accounts may be frozen 24
  25. 25. Staying Organized: Dealing With Your Estate Plan Upon the Death of a Loved One Review and/or Update your Estate Plan Consider adding a Co-Trustee Review and/or Update Beneficiary Designations Reevaluate your Insurance Needs 25
  26. 26. Staying Organized: Dealing With Taxes Upon the Death of a Loved One File Final Federal Income Tax Return File State Income Tax Return File Estate Tax Return (if appropriate) 26
  27. 27. Questions? 27
  28. 28. On Behalf of All of Us at Thank you 28
  29. 29. DISCLOSURE PAGE• Securities offered through Purshe Kaplan Sterling Investments, member FINRA/SIPC, Headquartered at 18 Corporate Woods Blvd, Albany, NY 12211.• Not FDIC insured. Not bank guaranteed. May lose value, including loss of principal. Not insured by any state or federal agency. 29

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