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Basics of Estate Planning

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Basics of Estate Planning

  1. 1. LIFE and ESTATE PLANNING In a Nutshell August 1, 2012Tredway Lumsdaine & Doyle LLP Monica Goel, Partner 1
  2. 2. WHAT IS AN ESTATE? 2
  3. 3. ESTATE PLAN COMPONENTS Other Business Assets Interests Bank Accounts Home Real Estate ProfitSharing Life Plan Insurance Pension IRAs Stocks Plan 3
  4. 4. WHY PLAN?After Death • Control Who Receives Assets • Pay Minimum Legal Fees, TaxesDuring Life • Control Assets, Medical Decisions in Event of Incapacity. 4
  5. 5. COMMON ESTATE PLANS 5
  6. 6. PLAN # 1 WHAT IS A WILL 6
  7. 7. WILLS AND INCAPACITY 7
  8. 8. WILLS AND DURABLE POWER OF ATTORNEY 8
  9. 9. Advanced Health Care Directive It’s estimated that four out of five Americans do not have a living will or any other written health care or end-of-life directive to help their families make decisions for them if they become incapacitated. Health care and end-of-life advance planning, if done right, accomplishes four things: Ensures that the person you want to speak for you has the legal authority to do so Helps ensure that your wishes about your health care are known and respected Avoids unnecessary, intrusive, and costly medical treatment at the point you not longer want it Reduces the suffering experienced by your loved ones, because they will have your guidance 9
  10. 10. PLAN #2 DOING NOTHING 10
  11. 11. PLAN #3 JOINT TENANCY1. Only Postpones Probate2. Unintentional Disinheriting3. Incapacity = Court Interference4. Difficult To Remove Co-Owner5. Lawsuits6. Debts/Tax Problems 11
  12. 12. PLAN #4 GIVING AWAY YOUR ASSETS 12
  13. 13. PLAN #5BENEFICIARY TRANSFER 13
  14. 14. PLAN #6 REVOCABLE LIVING TRUST Avoids Probate at Death Prevents Court Control of Assets at Incapacity Provides Maximum Privacy Quick Distribution of Assets to Beneficiaries Assets Can Stay in Trust Prevents Unintentional Disinheriting Reduces or Eliminates Estate Taxes 14
  15. 15. 15
  16. 16. YOU KEEP CONTROL Buy/SellAssets as Before Change/Cancel Any Time Trust Contains Your Instructions 16
  17. 17. EntitlementsMediCal LTC Provides nursing facility benefits Advantage-provides access and minimizes monthly nursing facility expenses to a share of income. Disadvantages-doesn’t cover Home Care in most counties, does not provide a private room, subjects the family to Estate Recovery Mandate. 17
  18. 18. SIX STEP PLAN OF ACTION1. Inventory Assets/Debts2. Write Down Your Objectives. Before and After You Die.3. Select a Professional to Help4. Have Legal Documents Prepared5. Put Plan into Action6. Review and Change As Needed 18
  19. 19. SUCCESSFUL ESTATE PLAN Bank Assets Other Insurance Accounts Life Home Business Interests Stocks IRAs Real Estate Profit Pension Sharing Plan Plan 19
  20. 20. Schedule your FREE initial consultation today! Monica Goel Tredway Lumsdaine & Doyle LLP 8141 E. 2nd Street, Suite 500 Downey, CA 90241 562-923-0971 Connect with us: Scan to visit our website 20
  21. 21. EntitlementsMedicare -Provides healthcare benefits for people age 65 and above and those under age 65 on social security disability. Advantage- provides hospitalization, covers doctors charges, skilled nursing facility. Limitations-has sizable deductibles and co- payments, does not cover prescription drugs or custodial care. 21

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