This document discusses estate planning and provides 13 common mistakes people make when planning their estate. It summarizes the basics of estate planning, including what constitutes an estate and the importance of planning for incapacity, wealth transfer, and protecting beneficiaries. Some of the key mistakes highlighted include failing to plan for health care decisions, not controlling financial matters during incapacity, and not understanding estate taxes. The document stresses the importance of estate planning and avoiding these mistakes.
The document discusses the financial challenges many women face, as most will become solely responsible for financial decisions due to being widowed or divorced, with many lacking pensions beyond Social Security. It provides steps for women to take control of their financial situation, including creating a support team, setting goals, investing wisely, planning for unexpected events, and being proactive in managing finances.
This document discusses important considerations for creating a will, including choosing how to distribute assets, selecting beneficiaries, appointing an executor, and nominating guardians for children. It recommends distributing assets as percentages rather than specific items, leaving clear instructions for alternative beneficiaries in case the primary ones predecease you. When choosing an executor, consider someone who is responsible and can handle potential family disagreements. Be sure to ask potential child guardians permission before listing them in your will to reduce the chance they refuse. The will must be properly signed and witnessed to be legally valid.
This Infographic gives an overview of the situation, explaining why surviving a critical illness can be financially devastating.
Read more: www.genre.com/knowledge/blog/critical-illness-insurance-fast-facts-en.html
Only 17% of employees report understanding their total annual healthcare costs extremely well, while more than half don't fully understand their major medical insurance policies. Additionally, 9% say they do not understand their annual deductible costs well at all. Most employees agree that healthcare and health insurance situations are too complicated and confusing to understand, with 71% believing their personal health insurance will become more confusing and 75% thinking healthcare reform is too complicated.
Estate planning involves systematically addressing problems and offering solutions related to wealth, dependents, businesses, and charitable goals upon death. An estate planning team typically includes an attorney, accountant, and insurance advisor. Key issues at death include caring for minor children, paying taxes and fees, and transferring assets through probate. Proper estate planning tools like wills, trusts, gifts, and life insurance can avoid probate, reduce taxes, provide for heirs, and offer peace of mind.
This document discusses enduring power of attorney and its importance for financial planning. It describes a scenario where a spouse is incapacitated from an accident and the other spouse is unable to access joint investments and pay medical bills without authorization. It recommends establishing an enduring power of attorney with a solicitor to grant permission for a spouse or trusted person to manage finances even if mentally incapacitated, such as from an accident or illness. This helps couples access needed funds in emergencies and the elderly plan for potential mental incapacity.
The document provides tips for drafting a will, including naming an executor and backup executor, specifying who assets will be left to and what should happen to assets if beneficiaries are deceased, and planning for any children. It recommends keeping the will flexible, general, and only needing updates every 10 years. Signing multiple copies and leaving them with the executor and family members is advised. For those single with few assets, a will kit may be sufficient, but risks mistakes rendering it useless, so for assets over $10,000 or if married, having a solicitor draft it for $300-$500 is better.
The document discusses the importance of estate planning and provides a top 10 list of reasons to do estate planning. It begins with defining estate planning as a way to distribute your assets according to your wishes after your death or incapacitation. The top 10 reasons include protecting pets, leaving a charitable legacy, protecting assets from children's creditors, passing values to future generations, and ensuring one's wishes are fulfilled. The document also provides brief history of estate taxes in the United States.
The document discusses the financial challenges many women face, as most will become solely responsible for financial decisions due to being widowed or divorced, with many lacking pensions beyond Social Security. It provides steps for women to take control of their financial situation, including creating a support team, setting goals, investing wisely, planning for unexpected events, and being proactive in managing finances.
This document discusses important considerations for creating a will, including choosing how to distribute assets, selecting beneficiaries, appointing an executor, and nominating guardians for children. It recommends distributing assets as percentages rather than specific items, leaving clear instructions for alternative beneficiaries in case the primary ones predecease you. When choosing an executor, consider someone who is responsible and can handle potential family disagreements. Be sure to ask potential child guardians permission before listing them in your will to reduce the chance they refuse. The will must be properly signed and witnessed to be legally valid.
This Infographic gives an overview of the situation, explaining why surviving a critical illness can be financially devastating.
Read more: www.genre.com/knowledge/blog/critical-illness-insurance-fast-facts-en.html
Only 17% of employees report understanding their total annual healthcare costs extremely well, while more than half don't fully understand their major medical insurance policies. Additionally, 9% say they do not understand their annual deductible costs well at all. Most employees agree that healthcare and health insurance situations are too complicated and confusing to understand, with 71% believing their personal health insurance will become more confusing and 75% thinking healthcare reform is too complicated.
Estate planning involves systematically addressing problems and offering solutions related to wealth, dependents, businesses, and charitable goals upon death. An estate planning team typically includes an attorney, accountant, and insurance advisor. Key issues at death include caring for minor children, paying taxes and fees, and transferring assets through probate. Proper estate planning tools like wills, trusts, gifts, and life insurance can avoid probate, reduce taxes, provide for heirs, and offer peace of mind.
This document discusses enduring power of attorney and its importance for financial planning. It describes a scenario where a spouse is incapacitated from an accident and the other spouse is unable to access joint investments and pay medical bills without authorization. It recommends establishing an enduring power of attorney with a solicitor to grant permission for a spouse or trusted person to manage finances even if mentally incapacitated, such as from an accident or illness. This helps couples access needed funds in emergencies and the elderly plan for potential mental incapacity.
The document provides tips for drafting a will, including naming an executor and backup executor, specifying who assets will be left to and what should happen to assets if beneficiaries are deceased, and planning for any children. It recommends keeping the will flexible, general, and only needing updates every 10 years. Signing multiple copies and leaving them with the executor and family members is advised. For those single with few assets, a will kit may be sufficient, but risks mistakes rendering it useless, so for assets over $10,000 or if married, having a solicitor draft it for $300-$500 is better.
The document discusses the importance of estate planning and provides a top 10 list of reasons to do estate planning. It begins with defining estate planning as a way to distribute your assets according to your wishes after your death or incapacitation. The top 10 reasons include protecting pets, leaving a charitable legacy, protecting assets from children's creditors, passing values to future generations, and ensuring one's wishes are fulfilled. The document also provides brief history of estate taxes in the United States.
The document lists the top 10 priority items for an executor or administrator of a Virginia estate. These include obtaining death certificates, presenting the will to probate court to get letters of qualification, applying for an EIN from the IRS, opening an estate checking account, locating personal documents of the deceased, notifying relevant parties of the death, making probate notifications, canceling personal accounts, applying for survivor benefits, and paying final bills carefully according to Virginia law. The sidebar provides information about an estate attorney, Eileen Swicker, who offers assistance with estate administration.
The Canadian Health Care Anti-fraud Association aims to eliminate healthcare fraud through combating misrepresentation and restoring integrity to the Canadian healthcare system. They define common healthcare frauds such as identity theft, fabricated receipts, and misrepresented claims. The document also addresses common myths about healthcare fraud and its harms such as loss of billions of dollars from the healthcare system annually.
The press and politicians have confused America with a new vocabulary for health insurance. This presentation was originally meant for the ladies in the Fort Bend chapter of ABWA. It was designed to help them understand the new terms that are being used and ultimately to understand what the press and politicians are actually saying. The goal is to allow them to form their own opinions about the new Health Care Law and not be forced to rely on someone else to make up their minds.
Just in time for Halloween, we have some scary tactics that are sure to keep our director of grants and scholarships sweating with fear! Visit our website for more information, cfgg.org.
The document discusses unemployment rates, workforce changes, and economic challenges in rural North Carolina from 2007-2009. It shows that rural counties generally had higher unemployment rates than urban counties during this period. The manufacturing, retail, and wholesale sectors declined significantly in rural areas while the service sector grew. It also notes increasing poverty, home foreclosures, and numbers of people exhausting unemployment benefits in rural North Carolina during the recession.
The document discusses the importance of estate planning and provides an overview of the basic components. It notes that without an estate plan, intestacy laws will dictate how one's assets are distributed, which may not be the preferred outcome. The basic estate plan includes a last will and testament, power of attorney, health care directive, and provisions for pets. Revocable living trusts are also discussed as an alternative to probate. Average fees for common estate planning documents are provided.
The document provides information to seniors about navigating Medicare and health care reform, clarifying that the Public Health Insurance Exchanges are not replacing Medicare, the Medicare eligibility age has not changed, and the enrollment process for Medicare has not changed with open enrollment ending on December 7, 2013. It also provides contact information for seniors to learn more or get personalized assistance about Medicare and health care reform.
This document provides information about estate planning documents and strategies. It discusses durable powers of attorney, health care proxies, living wills, probate vs. non-probate assets, trusts, guardianships, and intestacy. The key points are that everyone needs an estate plan to determine who receives assets and makes medical decisions; proper planning can avoid costs and ensure wishes are followed. It also warns that do-it-yourself plans can have unintended consequences, so consulting experts is recommended.
How to Preserve Your Wealth for Generations in CaliforniaScott Schomer
With proper estate and legacy planning, wealthy families have a better chance of success in passing on their fortune to their family, from one generation to the next. Learn more about legacy wealth planning in this presentation.
This document discusses strategies for minimizing inheritance disputes through estate planning. It recommends: 1) listing personal property gifts separately to avoid conflicts; 2) regularly updating plans for changed circumstances like divorce; 3) involving family in discussions for special assets like businesses or vacation homes; 4) using prenuptial agreements for second marriages to define entitlements; and 5) properly funding trusts to avoid confusion and carry out intentions. The goal is to make defensible choices transparently to satisfy emotional needs as well as practical requirements.
Hidden Risks and Mistakes to Avoid in Estate and Long-Term Care PlanningMelinda Merk
Co-presented with Buckley Kuhn Fricker on 11/4/17. Discusses the importance of pre-planning vs. crisis planning, and focuses on 3 key goals of estate and long-term care planning, which lead to Peace Of Mind, Protecting and Preserving Wealth, and Family Harmony: 1) maintaining control and protecting assets during life, including incapacity; 2) efficient and orderly wealth transfer at death; and 3) protecting beneficiaries from others and themselves.
An estate planning attorney in Alabama outlines the key differences between wills and trusts. Wills only control property that passes through probate, while trusts can control both probate and non-probate property if properly funded. While wills require court supervision during probate, trusts avoid this process but require more documentation and funding to remain effective over time. The attorney discusses various types of trusts used for disability and Medicaid planning. Overall, wills have lower upfront costs but take longer to administer an estate, while trusts are more complex but allow estates to pass privately without probate.
- Many people delay estate planning and do not appoint guardians for their children if they die. They also do not plan for what happens if no one claims their property after death.
- When creating a will and estate plan, it is important to consider all family relationships and dependents to ensure fair treatment. One should disclose all important relationships to their lawyer.
- Estate planning now also involves virtual assets like passwords, emails and online accounts. One needs to decide how these will be handled after death and ensure executors can access them.
1. Adult children need to ask their aging parents important questions about their finances, healthcare, living situation, and end-of-life wishes while they can.
2. Questions should address whether the parents have a financial advisor, estate plan, adequate insurance, and help managing bills if needed.
3. It is important to have open communication with parents about these issues to help them plan and feel secure, while allowing them to maintain a sense of control over their lives.
YOUR OPPORTUNITY
Where do you want to be in 5 years? 10 years? What about right now?
What if you could have the benefits of a traditional business career, but without someone else controlling your income, hours, partners and overall job security? Maybe you’re comfortable in your job, but would like to increase your opportunities and income without trying to balance the multiple schedules created for you. Technology is continuing to advance and the business world is rapidly changing. You’re going to be working anyway- shouldn’t you enjoy it? Shouldn’t you control it? Welcome to Financial Education Services.
At FES, we’ve combined the flexibility of working for yourself with the stability and management of a business which has already been established and achieved success. You don’t need to invest a bunch of money, store inventory or learn the technology behind our advanced financial programs; you just need the motivation and work ethic to create a strong, dependable team and continue to develop yourself as a leader within your organization. Your opportunities are limitless. The harder you work the more you’ll gain.
You’ll also have security in knowing the innovative products and services you are distributing are of the utmost quality and yet are continuously improving. The demand for our services is growing each and everyday, fitting the needs of various people throughout your community, at all stages of life. Make a difference, change your life- know that the hard work you’re putting into today is building and benefiting your financial opportunities for the future.
www.myfes.net/BRobinson1
How Parents Keep Control Both During Their Lifetimes And After They Are DeadBruce Givner
Irrevocable trusts are required if you want to engage in estate tax planning, asset protection planning (creditor planning) and even in a great deal of income tax (including capital gains tax) planning. However, parents are not thrilled at the idea of having to give away assets to a trust that they cannot revoke!! Do you mean that they can't change it? What if they change their minds about their children? About the trustee? Happily, there are many ways to make the parents comfortable that even though the trust itself is unable to be revoked, it is flexible. The parents, of course, pick as the initial trustee the person they trust to do whatever he or she is told without question but simply out of loyalty. More importantly, the parents can - at any time, without a reason - remove the trustee and name a new one (as long as the new one is not "related or subordinate" as defined in IRC Section 672(c)). The parents can advise the trustee to drop the assets down into a single member LLC and appoint the parents as the non-managing members. The trust can have a protector who can be given the power to remove the trustee; to change the allocation among the children; to add grandchildren and spouses of heirs and charities as beneficiaries; to change the manner of distribution to the heirs. Under California law if all of the beneficiaries and the grantors agree, they can amend an irrevocable trust without having to go to court. There are also other ways to change an irrevocable trust, e.g., decanting to a new trust with better provisions. The trust can start off as a grantor (disregarded) trust for income tax purposes and it can "flip" or "toggle" to a complex trust and, perhaps, flip back again. So, the goal of this presentation is to make people aware that there are ways to make parents comfortable with irrevocable trusts, without which planning would be difficult, if not impossible.
In a seminar titled, “Get Your Ducks In A Row,” Fraser Trebilcock attorney Marlaine C. Teahan shared her legal experience with families on topics that included: differences between wills and trusts and how to choose between them, the best planning ideas for minor and special needs children, and more.
In a seminar titled, “Get Your Ducks In A Row,” Fraser Trebilcock attorney Marlaine C. Teahan shared her legal experience with families on topics that included: differences between wills and trusts and how to choose between them, the best planning ideas for minor and special needs children, and more.
Trust Administration is the process people often find themselves in unexpectedly, after the death of a spouse or parent who created the trust prior to passing on.
The document lists the top 10 priority items for an executor or administrator of a Virginia estate. These include obtaining death certificates, presenting the will to probate court to get letters of qualification, applying for an EIN from the IRS, opening an estate checking account, locating personal documents of the deceased, notifying relevant parties of the death, making probate notifications, canceling personal accounts, applying for survivor benefits, and paying final bills carefully according to Virginia law. The sidebar provides information about an estate attorney, Eileen Swicker, who offers assistance with estate administration.
The Canadian Health Care Anti-fraud Association aims to eliminate healthcare fraud through combating misrepresentation and restoring integrity to the Canadian healthcare system. They define common healthcare frauds such as identity theft, fabricated receipts, and misrepresented claims. The document also addresses common myths about healthcare fraud and its harms such as loss of billions of dollars from the healthcare system annually.
The press and politicians have confused America with a new vocabulary for health insurance. This presentation was originally meant for the ladies in the Fort Bend chapter of ABWA. It was designed to help them understand the new terms that are being used and ultimately to understand what the press and politicians are actually saying. The goal is to allow them to form their own opinions about the new Health Care Law and not be forced to rely on someone else to make up their minds.
Just in time for Halloween, we have some scary tactics that are sure to keep our director of grants and scholarships sweating with fear! Visit our website for more information, cfgg.org.
The document discusses unemployment rates, workforce changes, and economic challenges in rural North Carolina from 2007-2009. It shows that rural counties generally had higher unemployment rates than urban counties during this period. The manufacturing, retail, and wholesale sectors declined significantly in rural areas while the service sector grew. It also notes increasing poverty, home foreclosures, and numbers of people exhausting unemployment benefits in rural North Carolina during the recession.
The document discusses the importance of estate planning and provides an overview of the basic components. It notes that without an estate plan, intestacy laws will dictate how one's assets are distributed, which may not be the preferred outcome. The basic estate plan includes a last will and testament, power of attorney, health care directive, and provisions for pets. Revocable living trusts are also discussed as an alternative to probate. Average fees for common estate planning documents are provided.
The document provides information to seniors about navigating Medicare and health care reform, clarifying that the Public Health Insurance Exchanges are not replacing Medicare, the Medicare eligibility age has not changed, and the enrollment process for Medicare has not changed with open enrollment ending on December 7, 2013. It also provides contact information for seniors to learn more or get personalized assistance about Medicare and health care reform.
This document provides information about estate planning documents and strategies. It discusses durable powers of attorney, health care proxies, living wills, probate vs. non-probate assets, trusts, guardianships, and intestacy. The key points are that everyone needs an estate plan to determine who receives assets and makes medical decisions; proper planning can avoid costs and ensure wishes are followed. It also warns that do-it-yourself plans can have unintended consequences, so consulting experts is recommended.
How to Preserve Your Wealth for Generations in CaliforniaScott Schomer
With proper estate and legacy planning, wealthy families have a better chance of success in passing on their fortune to their family, from one generation to the next. Learn more about legacy wealth planning in this presentation.
This document discusses strategies for minimizing inheritance disputes through estate planning. It recommends: 1) listing personal property gifts separately to avoid conflicts; 2) regularly updating plans for changed circumstances like divorce; 3) involving family in discussions for special assets like businesses or vacation homes; 4) using prenuptial agreements for second marriages to define entitlements; and 5) properly funding trusts to avoid confusion and carry out intentions. The goal is to make defensible choices transparently to satisfy emotional needs as well as practical requirements.
Hidden Risks and Mistakes to Avoid in Estate and Long-Term Care PlanningMelinda Merk
Co-presented with Buckley Kuhn Fricker on 11/4/17. Discusses the importance of pre-planning vs. crisis planning, and focuses on 3 key goals of estate and long-term care planning, which lead to Peace Of Mind, Protecting and Preserving Wealth, and Family Harmony: 1) maintaining control and protecting assets during life, including incapacity; 2) efficient and orderly wealth transfer at death; and 3) protecting beneficiaries from others and themselves.
An estate planning attorney in Alabama outlines the key differences between wills and trusts. Wills only control property that passes through probate, while trusts can control both probate and non-probate property if properly funded. While wills require court supervision during probate, trusts avoid this process but require more documentation and funding to remain effective over time. The attorney discusses various types of trusts used for disability and Medicaid planning. Overall, wills have lower upfront costs but take longer to administer an estate, while trusts are more complex but allow estates to pass privately without probate.
- Many people delay estate planning and do not appoint guardians for their children if they die. They also do not plan for what happens if no one claims their property after death.
- When creating a will and estate plan, it is important to consider all family relationships and dependents to ensure fair treatment. One should disclose all important relationships to their lawyer.
- Estate planning now also involves virtual assets like passwords, emails and online accounts. One needs to decide how these will be handled after death and ensure executors can access them.
1. Adult children need to ask their aging parents important questions about their finances, healthcare, living situation, and end-of-life wishes while they can.
2. Questions should address whether the parents have a financial advisor, estate plan, adequate insurance, and help managing bills if needed.
3. It is important to have open communication with parents about these issues to help them plan and feel secure, while allowing them to maintain a sense of control over their lives.
YOUR OPPORTUNITY
Where do you want to be in 5 years? 10 years? What about right now?
What if you could have the benefits of a traditional business career, but without someone else controlling your income, hours, partners and overall job security? Maybe you’re comfortable in your job, but would like to increase your opportunities and income without trying to balance the multiple schedules created for you. Technology is continuing to advance and the business world is rapidly changing. You’re going to be working anyway- shouldn’t you enjoy it? Shouldn’t you control it? Welcome to Financial Education Services.
At FES, we’ve combined the flexibility of working for yourself with the stability and management of a business which has already been established and achieved success. You don’t need to invest a bunch of money, store inventory or learn the technology behind our advanced financial programs; you just need the motivation and work ethic to create a strong, dependable team and continue to develop yourself as a leader within your organization. Your opportunities are limitless. The harder you work the more you’ll gain.
You’ll also have security in knowing the innovative products and services you are distributing are of the utmost quality and yet are continuously improving. The demand for our services is growing each and everyday, fitting the needs of various people throughout your community, at all stages of life. Make a difference, change your life- know that the hard work you’re putting into today is building and benefiting your financial opportunities for the future.
www.myfes.net/BRobinson1
How Parents Keep Control Both During Their Lifetimes And After They Are DeadBruce Givner
Irrevocable trusts are required if you want to engage in estate tax planning, asset protection planning (creditor planning) and even in a great deal of income tax (including capital gains tax) planning. However, parents are not thrilled at the idea of having to give away assets to a trust that they cannot revoke!! Do you mean that they can't change it? What if they change their minds about their children? About the trustee? Happily, there are many ways to make the parents comfortable that even though the trust itself is unable to be revoked, it is flexible. The parents, of course, pick as the initial trustee the person they trust to do whatever he or she is told without question but simply out of loyalty. More importantly, the parents can - at any time, without a reason - remove the trustee and name a new one (as long as the new one is not "related or subordinate" as defined in IRC Section 672(c)). The parents can advise the trustee to drop the assets down into a single member LLC and appoint the parents as the non-managing members. The trust can have a protector who can be given the power to remove the trustee; to change the allocation among the children; to add grandchildren and spouses of heirs and charities as beneficiaries; to change the manner of distribution to the heirs. Under California law if all of the beneficiaries and the grantors agree, they can amend an irrevocable trust without having to go to court. There are also other ways to change an irrevocable trust, e.g., decanting to a new trust with better provisions. The trust can start off as a grantor (disregarded) trust for income tax purposes and it can "flip" or "toggle" to a complex trust and, perhaps, flip back again. So, the goal of this presentation is to make people aware that there are ways to make parents comfortable with irrevocable trusts, without which planning would be difficult, if not impossible.
In a seminar titled, “Get Your Ducks In A Row,” Fraser Trebilcock attorney Marlaine C. Teahan shared her legal experience with families on topics that included: differences between wills and trusts and how to choose between them, the best planning ideas for minor and special needs children, and more.
In a seminar titled, “Get Your Ducks In A Row,” Fraser Trebilcock attorney Marlaine C. Teahan shared her legal experience with families on topics that included: differences between wills and trusts and how to choose between them, the best planning ideas for minor and special needs children, and more.
Trust Administration is the process people often find themselves in unexpectedly, after the death of a spouse or parent who created the trust prior to passing on.
Everything the Financial Advisor Needs To Know About Estate Planningwardwilsey
The document provides an overview of key estate planning strategies that financial advisors need to be aware of in order to properly address their clients' estate planning concerns. It discusses the importance of estate planning for clients with $3-10 million in net worth. It then covers estate tax rules, revocable living trusts, LLCs, spousal gifting trusts, IRA beneficiary designations, and techniques for avoiding or minimizing estate taxes such as GRATs, QPRTs, IDGTs, and charitable lead annuity trusts. The goal is to educate advisors on how to take a holistic wealth management approach that incorporates estate planning to better serve clients and grow their business.
Everything You Need To Know About Estate Planningwardwilsey
This is a seminar for Financial Advisors on everything they need to know about estate planning, trusts, and estate taxes in order to serve their clients
This document discusses using an irrevocable funeral trust to protect assets from nursing home costs and become eligible for Medicaid benefits. It notes that most states allow parents to fund funeral trusts for children without counting as a divestment of assets. The funeral trust can be funded with a life insurance policy and provides protection for funeral expenses while allowing spend-down of other assets for Medicaid eligibility. Consulting an elder law attorney is recommended to understand state-specific Medicaid rules.
This document discusses financial options for helping parents manage their money if they develop Alzheimer's or other conditions limiting their competence. It describes obtaining a power of attorney to assist with bills and decisions currently, or pursuing conservatorship through probate court if parents can no longer make financial decisions. The document provides details on the processes, differences between options, and alternatives like hiring daily money managers if children do not want the responsibility. It stresses the importance of obtaining proper legal documentation and avoiding scams targeting the elderly.
Understanding Wills, Trusts & Estate PlanningGerald Klein
This document provides an overview of estate planning topics including wills, trusts, income planning, medical planning, Medicaid planning, and financial planning. It discusses the importance of having a will to dispose of property according to one's wishes, provide tax advantages, and protect assets. Trusts are described as a vehicle to manage property and avoid probate, allow for tax planning, help qualify for Medicaid benefits, ensure assets remain available for loved ones, and protect assets from creditors. Key details include definitions of wills and trusts, considerations for appointing powers of attorney and executors, and estate and gift tax thresholds.
1. Sun City West, AZ Estate Planning 101 Law Office of Dennis Caufield, LLC
2. “ What is an “Estate?” Insurance Policies Cash Stocks Jewelry IRA’s Investments Your Home Income Properties Automobiles Antiques Bonds &
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4. When Should You Plan Your Estate? Today Mental Incapacity Catastrophic Illness Death Your Planning Opportunity Living Trust Will Living Will Powers of Attorney
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9. #1 Mistake Failing to Address Health Care Decisions
10. Online Storage of Healthcare Documents Free Service Offered by the Arizona Secretary of State Visit www.azsos.gov/adv_dir
11. #2 Mistake Failing to Plan for HIPAA (Access to Medical Records)
12. #3 Mistake No plan to control financial & property matters during incapacity
20. #8 Mistake Not Preserving Tax Deferral Benefits of Retirement Plans
21. HUGE LOSS When Your IRA is Cashed-out Early and Spent! Assumes $100,000 at age 40 earning 6% and Child fully withdraws and must pay the tax due A difference of over $ 400,000 on a $100,000 IRA!
22. Still a BIG LOSS When Your IRA is Cashed-out Early and Invested! Assumes $100,000 at age 40 earning 6% and Child fully withdraws and must pay the tax due A difference of over $ 300,000 on a $100,000 IRA!
23. #9 Mistake Failing to Organize and Consolidate
24. #10 Mistake In 2nd marriages, failing to protect your spouse, and your kids
Thank you for taking the time to view this presentation! This slide show is adapted from my seminar, Estate Planning 101. If you would like to participate in a more comprehensive learning opportunity, you may R.S.V.P. to attend the Estate Planning 101 seminar free of charge on the first Wednesday of each month at my Sun City West office. 70% of Americans have no Will or Trust; sometimes the consequences of inaction are tragic as I will illustrate within.
What is an estate? Your estate is everything you own. For most people, when they start adding it up it is more than they think. It includes all of your assets, including life insurance policies, retirement accounts and personal property.
Before we begin I would like you to keep in mind three basic keys to estate planning: Maintaining control during incapacity, quick and cost effective wealth transfer at death, and protecting beneficiaries from themselves and others.
These are the stages of life and estate planning documents that can protect you during those various stages. The best time to plan your estate is now , while you are competent to plan for yourself. With Estate Planning, there is no second chance. Once you are incapacitated, that window for planning is forever closed. None of us likes to think about our own mortality or the possibility of becoming incapacitated. And that's exactly why so many families are caught off guard and unprepared when incapacity or death strikes. If someone needs to manage your affairs after you are incapacitated, the failure to have proper estate planning will require that someone apply to the Court to appoint a conservator and/or guardian. These proceedings will generally cost more than $5,000 and could result in a stranger managing your affairs.
The 2 main forms of estate planning are a Will-based plan or a Trust-based plan. Joint ownership and beneficiary designations are often used with less success.
A Will-based plan passes your assets to your beneficiaries via a Will. A Will is effective only upon your death. Like a Trust-based plan, a Will-based plan includes a Financial Power of Attorney, Healthcare Power of Attorney, Living Will and HIPAA Authorization. The primary drawback to a Will is that it does not avoid Probate . While the Probate process is not as costly in Arizona as some other states like California, it still has significant drawbacks. Unlike a Trust, a Will does not avoid the hassles of Court oversight, filing fees, time delay and the loss of privacy as a Will becomes a public document and meanders through the probate process.
This is the technical definition. But, I promised you no legalese and just plain English.
A Trust is a receptacle, illustrated here by this bucket, which has instructions for the management and distribution of the assets that you place in the bucket. There are 3 main parties to a Trust. Ordinarily during your lifetime, prior to incapacity, the Grantor(s) will serve in all 3 of these roles. Grantor - Creator of the Trust. With the aid of an attorney, sets the instructions as to what can be done with assets in the Trust. The Grantor retains the right to amend or revoke the Trust. Trustee- T he person who manages the property in the Trust. Beneficiary - The person who receives the benefit of the property held in the Trust. The Grantor will name the people or institutions who will serve as successor Trustees and successor Beneficiaries. This allows for a smooth transition of estate management upon death or incapacity. Next, I will present 13 mistakes commonly found in Estate Planning.
The reality is that 85% of deaths occur in hospitals and nursing homes. Prudent planning addresses the possibility that healthcare decisions affecting your life may one day need to be made by others. A Health Care Power of Attorney will name the person and successors that you want to carry out your wishes. In Arizona, you should also have mental healthcare powers incorporated into this document. A Living Will gives your instructions as to the level of treatment you want in various crisis healthcare scenarios. While planning is important to ensure that your wishes are carried out, another important benefit is that healthcare planning is a gift to your loved ones. Perhaps the person making the decisions on your behalf is not sure what you would have wanted and is burdened with tremendous guilt and stress regarding the decision. Maybe family remembers will not agree as to the decision, leaving your fate in limbo while the disagreement causes a family split and possible legal action. Indeed, healthcare planning is a gift to your loved ones that ensures that your health crisis or passing is not coupled with other unnecessary hardships.
How do I register my Healthcare Power of Attorney and Living Will with the Arizona Secretary of State? This free service provides ready access to your healthcare documents for convenience and in times of emergency when these documents could not otherwise be readily accessed. Simply complete the Arizona Secretary of State’s “Registration Agreement” and mail that completed document along with a copy of your Healthcare Power of Attorney and Living Will to the address on the form. After approximately 3 weeks, you will receive a wallet-sized membership card with a user name and password that will enable access to your healthcare documents. For more information, please contact the Arizona Secretary of State at 602.542.6187 or www.azsos.gov .
Changes in law that have arisen as part of the Health Insurance Portability and Accountability Act restrict access to your medical records and information to your loved ones and all others absent your specific consent. Make sure that you have executed a HIPAA authorization granting your loved ones the ability to have access to your health care providers.
Recently, I was contacted by a woman who wanted to know how her Mom could transfer real estate owned by her Mom and Dad as Community Property. She advised me that her Dad was incapacitated and had never done any estate planning. I had to give her the unfortunate news that a Court proceeding would be necessary to transfer the property. It would cost thousands of dollars, and the Court would appoint a Conservator and retain ongoing oversight of his financial affairs. Now that her Dad was incapacitated, he had missed the window of opportunity to make an estate plan that would have put him in control of his own affairs. Proper estate planning allows you to make the decision as to who will manage your affairs when you are incapacitated, free from Court intervention and Court costs. Furthermore, you can create legal documents, such as a Revocable Living Trust and a Financial Power of Attorney, that leave binding instructions to those who will manage your assets.
Many people have either no wealth transfer strategy, or they have a hodgepodge, disjointed plan that passes some assets via beneficiary designations, joint tenancy and only limited assets via the will or trust. The titling of assets is of vital importance. For example, a widowed Mom had a Will that left everything equally to all 3 of her children. However, she had 1 large bank account that she titled as a joint account with her oldest son. Upon her death, that account passed to the oldest son. Only the balance of the inheritance (that was not passed by means of a joint account or beneficiary designation) passed in equal shares to the 3 children. This resulted in lingering hard feelings among the children as to whether or not it was Mom’s true intention to leave that account solely to the oldest son. A good plan integrates planning for all of your assets in a concerted plan. This ensures that distributions are made in the amounts and manner that you intend.
If you die without an estate plan, the State of Arizona has a plan for you : the intestacy laws of the state of Arizona. The Arizona intestacy laws pre-suppose that the person who died without an estate plan would choose relatives that are commonly chosen as heirs. These laws make no allowance for your unique circumstances. Additionally, they allow heirs to take outright ownership at age 18. The concern with outright distributions will be demonstrated later in this presentation.
If your estate exceeds the federal exclusion amount, it is taxed at a very high rate as the following slide shows. Married couples can easily double their exclusion with the use of a credit shelter trust. Additionally, there are other trusts and planning techniques to further reduce estate taxes.
The federal estate tax exclusion is now set at $5,000,000.00. As the chart above demonstrates the exclusion amount is not static, but subject to change. It has increased greatly over the last decade. The most recent legislation in December 2010 cover the years 2011 and 2012. However, the exclusion will revert to $1 million in 2013 without further legislation. It is likely that such a reversion will not take place, however, prudent planning will allow for flexibility to cover such a possibility. There is presently no Arizona estate tax.
You can leave an inheritance directly to your Beneficiaries as an “outright distribution” or “in trust.” I don’t know about you, but if I had received a significant inheritance, outright with no strings attached at the age of 18, I would have been tempted to “invest” it in a Corvette and some other goodies. Instead of leaving an inheritance as an “outright distribution”, you can leave your inheritance “in trust” and protect it from being squandered not only by a naive 18 year-old, but also by adult children, who are spendthrifts, have addiction issues or are otherwise prone to invest it poorly. Furthermore, regardless of age, you will want to protect the inheritance from children’s divorces, lawsuits, bankruptcy, personal injury claims and scam artists. Passes inheritance to your children’s children, instead of your son-in-law or daughter-in-law If they don’t have children, can transfer to siblings first and nieces and nephews second. Protects inheritance from children’s divorces Protects inheritance from lawsuits, creditors (bankruptcy, personal injury claims, IRS, etc.) * Special Needs - All of my plans allow the Trustee (or Personal Representative for a Will-based plan) to take a second look prior distribution to determine if the heir is receiving or applying for governmental needs-based assistance. If so, the distribution is made to a Supplemental Needs Trust for the benefit of the Beneficiary to prevent the disqualification of the Beneficiary from any needs-based governmental assistance program.
This further illustrates the “Outright Distribution” problem. What if your Beneficiary inherits $50,000, $500,000 or even $5 million outright? It will not be shielded from creditors, predators, lawsuits and even their own poor financial responsibility. You are rightly concerned about the impact the inheritance you leave will have on your Beneficiaries. You want it to be a blessing and not a curse, like it was for Barbara Hutton. News programs are chock full of stories of people whose lives turn tragic because they suddenly had vast resources without the ability to manage them. Whether it is merely a missed opportunity to use a modest inheritance to get a leg up in the world, or exploitation, or other problems that can occur, why not take advantage of the available tools to guard against this?
What impact will you have on your Beneficiaries? At seminars, I usually present the following hypothetical. If someone gave you $X dollars (using your present net worth for X) with the stipulation that you had to give it all away in 30 days, how would you distribute those funds? I can always see the wheels spinning. It is opportunity to take an amount larger than they ever expended before to impact loved ones and favorite charities. What a great opportunity! Well, we are all going to have a similar opportunity on our passing. Sure, the amount may be more or less than it is now, but nonetheless it will still be a significant opportunity. Maybe you will leave it all to your spouse and then to your children. Maybe you will carve out 10% for your place of worship. Maybe you will leave more to your child caring for a medically needy child than you will to your child who has accumulated great wealth. The choices are endless. But, you have an opportunity to significantly impact the world around you. By being a good steward you can plan with a purpose and use your control to make a difference.
If you have assets invested in Retirement plan, it is likely that one of the most important reasons for using that vehicle was to defer the payment of taxes. That tax deferment allows for significant growth. And that tax deferred growth need not end upon your death. Without proper planning, most of your retirement account could be subject to immediate taxation on your death. But, the longer your Beneficiaries can keep funds in an IRA after your death, the more wealth they can create! Your estate plan should consider the best ways to stretch your IRA for maximum tax deferral. A St and Alone IRA Trust can prevent the Beneficiary from cashing out the IRA and offers protection against creditors, predators, lawsuits and divorce.
Make sure your IRA Beneficiaries, particularly those lacking in financial discipline, don’t make this mistake and cash out the IRA at the first opportunity. The Child who cashed out the IRA Trust had to pay state and federal taxes and netted $65,000.00.
Even if the Beneficiary cashes out the IRA and re-invests the proceeds, the impact of the payment of taxes is still significant.
Even with an estate plan, it is important to be organized. Someday a successor Trustee or another person of your choosing will be taking over your affairs due to your death or incapacity. What will that person find? As to your estate plan, if done by my office, they will find an Estate Planning Portfolio as a repository for all your estate planning documents. Additionally, you are provided with an electronic copy of all the documents via a password protected CD. Additional CDs are provided to distribute according to your preference for a small fee. Your estate planning portfolio should contain a reference as to where your financial records are kept. You will need to also have a central repository for all of your assets, including your life insurance policies. Keep this list organized and periodically update it, so that your estate may enjoy a smooth transition.
If you have children from a previous relationship, you may want to set up your estate plan to ensure that your children will receive their inheritance. In other words, you may want to ensure that if your spouse survives you and remarries, that any potential replacement spouse does not wind up with your children’s inheritance. How can you do this without impoverishing your current spouse? You can leave your share of the Community Property plus your Separate Property in a Trust that p rovides income and a certain portion of the principal to your spouse for life in accordance with his/her needs; and then income and/or principal goes to your children . There is a full spectrum in the range of control and access that you can give to your spouse.
At your death you will undoubtedly own a certain amount of personal property. Tangible personal property includes: photos, jewelry, artwork, collectibles, furniture and motor vehicles. While some of these items will be of negligible value, others may be of significant value, and still others will be of great sentimental value to your loved ones. In order to keep family harmony, it may be advantageous to leave this property specifically to named individuals or entities. You can make these assignments in your Will or Trust. A better option is to execute a Personal Property Memorandum. Under Arizona law this can be done at any time (even after the Will or Trust is signed) as long as the document clearly identifies the tangible personal property, the person or entity to whom you are leaving it and you sign the document. Our office provides you these forms in your portfolio and on the CD so that you can make changes at any time as to your tangible personal property without incurring any further attorney expenses.
Have you named a Guardian for your dependent children? If not, a Court proceeding may be initiated to appoint as Guardian a family member, a friend or “any person interested in the welfare” of the child. However, that may not be the person you would have chosen. You can be an optimist and hope that the person that you would have selected is appointed as Guardian. But, family members, friends, or “any person interested in the welfare” of the child, all with good intentions, may take opposing sides in Court with uncertain results. Fortunately, you have the available choice of taking control now and making an estate plan that names the person they want to serve as Guardian in your Will. Furthermore, when your child reaches the age of 18, he or she will have unfettered access to their inheritance. This poses significant problems as outlined in Mistake #5 above. Mistake #5 also addresses the need for a Supplemental Needs Trust to protect inheritances left to persons who are incapacitated.
I am a firm believer that the client is entitled to an estate plan that is comprehensive and addresses as many contingencies as possible, so that the client’s plan will stand the test of time. However, a periodic review of your estate plan is essential as there may be changes in laws, your net worth and sometimes, the circumstances surrounding your beneficiaries’ needs or your fiduciary’s ability or suitability to serve. Additionally, over a long period of years, sometimes better methods of estate planning become available. I try to keep my clients abreast of the latest changes in estate planning law via an e-newsletter. Please feel free to sign up for the e-newsletter on this website.
So now that you have more valuable information, where do you go from here? You could work with a counseling oriented attorney to establish your plan. Dennis Caufield’s practice is focused soley on Estate Planning and he offers a free initial consultation. What are you waiting for?
There’s a reason why you are viewing this presentation. Consider scheduling a Free Consultation or reserving a space to attend the Free Estate Planning 101 Seminar. You have nothing to lose and very likely much to gain. Take control of your affairs and Plan Today for a Secure Tomorrow! Thank you for visiting the web site.