St. Mary's University Financial Wisdom for Women Session

1. Think you don’t
need an Estate Plan?
You Do.
FINANCIAL WISDOM FOR WOMEN
A FINANCIAL AND ESTATE PLANNING EVENT FOR THE
WOMEN OF ST. MARY’S UNIVERSITY
MAY 20, 2016

2. What is Estate Planning?
 Asset Management During Life
 Incapacity
 Centralized control
 Asset Protection Planning
 Divorce
 Creditor protection
 Asset Distribution Upon Death
 On your terms

3. GOALS
 Transfer Title
 Provide for Family
 Retain Property in Family
 Charitable Intent
 Control Future Disposition
 Avoidance of Tax

4. Estate Planning is a Dynamic Process
 Life Changes
 Marriage, Divorce, Birth, Death and Disability
 Economic Changes
 Income
 Business
 Inheritance
 Changes in Law
 Tax, Probate, and Property Law

5. Disposition of Assets
 Transfers During Life – “Intervivos Transfers”
 Transfers Upon Death – “Testamentary Transfers”
 Beneficiaries of Property
 Instrument Disposing of Property
 Will
 Trust
 Deed
 Contract

6. Last Will and Testament
 States How Your Property Passes Upon Your Death
 Beneficiaries
 “Outright” vs. “In trust”
 Appoints a Person or Entity to Administer Your Estate and Manage Assets
 Executor
 Trustee
 Probate of Will

7. Probate and Estate Administration
 Appointment of Executor
 Duties of Executor
 Collect Assets of Estate
 Pay Debts
 Distribute Remaining Property to Beneficiaries
 Independent Administration vs. Dependent Administration

8. What If I Die Without a Will?
 Property Passes According to Texas Estates Code
 Estates Code Allocates Property to Heirs in Percentages
 Property May Not Pass According to the Deceased’s Wishes
 Administrator of Estate Appointed by Court
 Administrator May be Required to Post Bond
 No Tax Planning
 Administration Expenses

10. Trust Agreement
 Fiduciary Relationship When One Person Gives Property to Second Person
for the Benefit of a Third Person
 Trust Holds Legal Title to Property
 Management and Investment for the Sole Benefit of the Beneficiary
 Trustee has a Fiduciary Duty to Benefiary
 Intervivos (lifetime) vs. Testamentary (activates upon death)
 Trust can Benefit the Person Transferring the Property (Grantor, Trustor,
Settlor) or a Third Party

11. Trust vs. Will
 A Will Only Comes Into Effect After a Person’s Death Whereas a Trust can Become
Effective During Their Life
 Disposition of Property
 Tax Planning/Avoidance
 Creditor Protection
 Will can Contain a Trust for a Beneficiary
 Probate vs. Non-Probate
 Administration Expenses

12. Beneficiary Designations
 Life Insurance
 IRA
 Annuities
 Bank Accounts
 Joint Tenants / Rights of Survivorship
 JTWROS
 Payable on Death (POD)
 Non-Probate Assets – Do not Pass under Will/Trust – Defeats Estate Plan

13. Special Needs Trusts
 Supplemental Needs Trusts
 Provide Care for Beneficiary Without Disqualifying Beneficiary From
Government Benefits
 Government Programs Limited Based on Income and Assets
 Medicare
 Medicaid
 Gifting of Assets Penalties

14. Revocable Trust for Incapacity
 Lack of Family to Care for Beneficiary
 Management of Beneficiary’s Assets By Third Party
 Eliminates Court Appointed Guardian of Estate

15. Ancillary Estate Planning Documents
 Statutory Durable Power of Attorney
 Medical Power of Attorney
 HIPAA Form
 Directive to Physicians (Living Will)

16. Taxes and Tax Planning
 Types of Transfer Taxes
 Gift Tax
 Estate Tax
 Generation Skipping Transfer Tax
 Gift Tax
 Based on Assets Transferred During Lifetime
 Annual Exclusion Amount
 Payable By Donor
 Lifetime Credit / Rate

17. Tax and Tax Planning
 Estate Tax
 Based on Assets Held Upon Death
 No Exclusion
 Lifetime Credit
 GST Tax (Generation Skipping Transfer Tax)
 During Life or After Death
 Tax Occurs When Assets Skip a Generation
 Lifetime Credit

18. Tax and Tax Planning
 Ways to Reduce Taxes
 Reduce Assets or Asset Value
 Annual Exclusion Gifts
 Family Limited Partnership Discount
 Credit Shelter Trust
 Marital Deduction Trust
 Irrevocable Trusts for Third Parties or Charity

19. Patty is a shareholder with Duncan, Bressler & Liu, Inc. Her
practice concentrates on estate planning and trusts (including
family wealth transfers), marital agreements, probate, and
guardianships. She is Board Certified in Estate Planning and
Probate Law by the Texas Board of Legal Specialization and is a
Fellow of both the Texas Bar Foundation and the San Antonio
Bar Foundation. She is licensed in all Texas state courts and the
United States District Court for the Western District of Texas.
She is a graduate of Leadership Texas (2014) and currently
serves on the Board of Governors for the San Antonio Estate
Planners Council. Patty received her undergraduate degree
from Rhodes College and her law degree from St. Mary's
University School of Law.
Patricia Rouse
Vargas

20. Patty Vargas
Duncan, Bressler & Liu, Inc.
1020 N.E. Loop 410, Suite 500
San Antonio, Texas 78209
210-224-0781
pvargas@duncanlaw.com