1. Planning for Retirement and
Your Estate Plan
October 24, 2012
Presented by:
Gregory M. Wirt, Esq.
Fox Rothschild LLP

2. Estate Planning Objectives
 Plan for disability or incapacity
 Financial decisions
 Medical decisions
 Develop a plan for distribution of your assets
 Who, What, When and How
 Minimize exposure to estate, inheritance and
income tax liability

3. Estate Planning Considerations
 Consider who should handle your medical
and financial decisions if you are not able to
act
 Provide for your family members – spouse,
children, grandchildren, step-children,
parents and siblings
 Coordinate your estate plan among your Will,
beneficiary designations and the titling of
your assets

4. Effect of a Lack of Estate Planning
 Statutory or Court appointment of agents for
medical and financial decisions
 Intestacy = State imposed plan
 Estate may be required to pay unnecessary
taxes and expenses

5. Estate Planning Documents
 Durable General Power of Attorney
 Living Will and Health Care Power of
Attorney (Advance Health Care
Directive)
 Will

6. Planning for Incapacity
 Durable General Power of Attorney
 Appointment of agent
 Power to manage your finances
 Indicate powers granted to your agent
 Name a successor agent
 Durable v. Springing Power of Attorney

7. Planning for Incapacity
 Living Will
 Instruct your health care providers and family
members regarding life sustaining treatment
 Health Care Power of Attorney
 Appoint an agent to make health care decisions
on your behalf

8. Distribution of Assets at Your Death
 Probate v. Non-Probate Assets
 Direct transfer
 Beneficiary Designations (401(k), IRAs and other
retirement accounts)
 Life Insurance
 Joint ownership
 Tenants by the Entireties
 Joint Tenants with Right of Survivorship
 Tenants in Common
 Trusts

9. Will
 Appoint your Executor
 Distribution of Assets
 Personal Property
 Specific Bequests – Family or Charity
 Residue
 Should a trust be a part of your plan?
 Estate and inheritance tax saving strategies

10. Will
 Your Will is influenced by:
 Personal circumstances and your goals
 Type and value of assets
 Tax planning considerations
 Review your estate plan every 3 to 5 years or upon the
occurrence of certain events
 Move to a different state
 Marital status changes
 Youngest child becomes an adult
 Change executor, guardian or trustee
 Changes to laws that affect your estate
 Changes in the value of your estate

11. Federal Estate Tax
 Tax imposed at the time of death based on the
value of the estate
 Assets left to a charity or spouse (U.S. citizen) are
exempt
 Life insurance is included in the value of the estate

12. Federal Estate Tax
Tax Exemption Limits & Maximum Tax Rates
Estate tax Maximum estate and
Year of death
exemption gift tax rate
2009 $3,500,000 45%
2010 No limit/ 45%
$3,500,000
2011 $5,000,000 35%
2012 $5,120,000 35%
2013 $1,000,000* 55%*

13. State Taxes
 Pennsylvania Inheritance Tax
 Spouse – exempt
 Parents, children, grandchildren – 4.5%
 Siblings – 12%
 Others (nieces, nephews, friends, etc.) – 15%
 Charities – exempt
 New Jersey Estate and Inheritance Tax
 Estate tax imposed on estates above $675,000 – variable rate
 Inheritance Tax
 Class A beneficiaries (spouse, civil union partners, children and
grandchildren) – exempt
 Siblings – 11% - 16%
 Others – 15% - 16%

14. Goals of Estate Planning
 Completes your financial plan
 Plan for your incapacity and health care
decisions
 Plan for your incapacity and financial
decisions
 Develop a plan to distribute your assets and
provide for your family
 Minimize tax exposure

15. Contact Information
Gregory M. Wirt, Esquire
Fox Rothschild LLP
747 Constitution Drive, Suite 100
Exton, PA 19341-0673
610-458-3113
gwirt@foxrothschild.com