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Estate Planning



   Basic Estate Planning
   Workshop
What Is An Estate?
Why Do Estate Planning?

After Death
   Control Who Receives Assets
   Pay Minimum Legal Fees, Taxes
At Incapacity
   Control Assets, Medical Decisions
A.D.D.

  Alive
  Disabled
  Deceased
Common Estate Plans

    Will
    Doing Nothing
    Joint Ownership
    Giving Away Assets
    Beneficiary Transfers
    Revocable Living Trust
Probate

 Assets Titled in Just Your Name Go Through
  Probate



                 PROBATE


       Probate
        Fees                     Taxes

                 Beneficiaries
Giving Away Assets

 You Lose Control
Stepped-Up Basis

                     Lifetime Gifts
                     (Your Basis)
 Selling Price       $150,000
 Basis                - 10,000
 Gain                $140,000
 Capital Gains Tax   $ 28,000
Stepped-Up Basis

                    Lifetime Gifts Transfers At Death
                    (Your Basis) (New, Stepped-Up Basis)
Selling Price       $150,000           $150,000
Basis               - 10,000           -150,000
Gain                $140,000           $     0
Capital Gains Tax   $ 28,000           $     0
Beneficiary Transfers

Court Interference if Beneficiary:
     Incapacitated
     Dies First or at Same Time
     “My Estate”
     Minor
Keeping Control with a
Revocable Living Trust
Expenses That Reduce
Your Estate



        Estate   Probate
        Taxes


            Income
             Taxes
Tax Relief Act of 2001
EGTRRA 2001


  2002 & 2003   $1,000,000
  2004 & 2005   $1,500,000
  2006 - 2008   $2,000,000
  2009          $3,500,000
  2010          Estate and GSTT repealed
  2011 to 2013 $5,000,000
Choices in Estate Planning
                            No       Joint Simple Power of Living
                            Will   Tenancy   Will Attorney Trust

 Avoid Guardianship?        No       No     No      Yes      Yes
 Avoid Probate
                            No       Yes    No       No      Yes
    on the 1st Death?
 Avoid Probate              No       Yes    No       No      Yes
    on the 2nd Death?
 Control the Distribution
    on the 1st Death?       No       Yes    Yes      No      Yes
 Control the Distribution
    on the 2nd Death?       No       Yes    Yes      No      Yes
 Provide the Maximum
    Tax Savings?            No       No     Yes      No      Yes
What is an Estate Plan?

    A Trust Agreement
    “Pour Over” Will
    Durable Power of Attorney
    Durable Power of Attorney for Health Care
    Living Will
    Trust Amendments (Trust Minutes)
    Quit Claim Deed
    Trust Execution & Management Instructions
The Actual Process

 Complete the Data Form and schedule an
  appointment to review your Data.
 The attorney will prepare a draft of your
  Living Trust for your review and approval.
 Upon your approval of the draft, the final
  copy of your Living Trust will be prepared for
  signing.
 Upon your Execution of your Personal Family
  Living Trust, your Estate Planning Team will
  assist you in the FUNDING of your Trust!
Thanks for Attending
Estate Planning

              Presented by


     Arthur J. Pauly, Jr. J.D. Esq.

            916-207-7526

         www.paulylaw.com

       artpauly@paulylaw.com

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Basic Estate Planning

  • 1. Estate Planning Basic Estate Planning Workshop
  • 2. What Is An Estate?
  • 3. Why Do Estate Planning? After Death  Control Who Receives Assets  Pay Minimum Legal Fees, Taxes At Incapacity  Control Assets, Medical Decisions
  • 4. A.D.D.  Alive  Disabled  Deceased
  • 5. Common Estate Plans  Will  Doing Nothing  Joint Ownership  Giving Away Assets  Beneficiary Transfers  Revocable Living Trust
  • 6. Probate Assets Titled in Just Your Name Go Through Probate PROBATE Probate Fees Taxes Beneficiaries
  • 7. Giving Away Assets You Lose Control
  • 8. Stepped-Up Basis Lifetime Gifts (Your Basis) Selling Price $150,000 Basis - 10,000 Gain $140,000 Capital Gains Tax $ 28,000
  • 9. Stepped-Up Basis Lifetime Gifts Transfers At Death (Your Basis) (New, Stepped-Up Basis) Selling Price $150,000 $150,000 Basis - 10,000 -150,000 Gain $140,000 $ 0 Capital Gains Tax $ 28,000 $ 0
  • 10. Beneficiary Transfers Court Interference if Beneficiary:  Incapacitated  Dies First or at Same Time  “My Estate”  Minor
  • 11. Keeping Control with a Revocable Living Trust
  • 12. Expenses That Reduce Your Estate Estate Probate Taxes Income Taxes
  • 13. Tax Relief Act of 2001 EGTRRA 2001 2002 & 2003 $1,000,000 2004 & 2005 $1,500,000 2006 - 2008 $2,000,000 2009 $3,500,000 2010 Estate and GSTT repealed 2011 to 2013 $5,000,000
  • 14. Choices in Estate Planning No Joint Simple Power of Living Will Tenancy Will Attorney Trust Avoid Guardianship? No No No Yes Yes Avoid Probate No Yes No No Yes on the 1st Death? Avoid Probate No Yes No No Yes on the 2nd Death? Control the Distribution on the 1st Death? No Yes Yes No Yes Control the Distribution on the 2nd Death? No Yes Yes No Yes Provide the Maximum Tax Savings? No No Yes No Yes
  • 15. What is an Estate Plan?  A Trust Agreement  “Pour Over” Will  Durable Power of Attorney  Durable Power of Attorney for Health Care  Living Will  Trust Amendments (Trust Minutes)  Quit Claim Deed  Trust Execution & Management Instructions
  • 16. The Actual Process Complete the Data Form and schedule an appointment to review your Data. The attorney will prepare a draft of your Living Trust for your review and approval. Upon your approval of the draft, the final copy of your Living Trust will be prepared for signing. Upon your Execution of your Personal Family Living Trust, your Estate Planning Team will assist you in the FUNDING of your Trust!
  • 18. Estate Planning Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526 www.paulylaw.com artpauly@paulylaw.com