Downloaded 49 times
Uploaded bymilfamln
Estate Planning Basics & Advanced Directives
The document serves as a comprehensive guide on estate planning, emphasizing its importance for asset distribution and management of personal affairs upon death or incapacity. It outlines various phases, tools, and documents involved in estate planning, including wills, trusts, and advance directives, while also addressing specific considerations for military families. Additionally, it emphasizes the risks of avoiding estate planning and the consequences of intestacy.
More Related Content
Similar to Estate Planning Basics & Advanced Directives
Estate Planning Basics & Advanced Directives
- 1. Estate Planning Basics& Advanced Directives https://learn.extension.org/events/2149 This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Readiness Policy, U.S. Department of Defense under Award Numbers 2010-48869-20685, 2012-48755-20306, and 2014-48770-22587.
- 2. Research and evidenced-based professionaldevelopment through engaged online communities www.extension.org/militaryfamilies Sign up for webinar email notifications at www.extension.org/62831
- 3. Find us onTwitter by following @MFLNPF Join our community on Facebook: MFLN Personal Finance
- 4. Available resources https://learn.extension.org/events/2149 Find slidesand additional resources under ‘event materials’
- 5. Presenters Dr. Barbara O’Neill •Financial resource management specialist for Rutgers Cooperative Extension, •Has been a professor, financial educator, and author for 35 years. •Is a certified financial planner (CFP®), chartered retirement planning counselor (CRPC®), accredited financial counselor (AFC), certified housing counselor (CHC), and certified financial educator (CFEd). Mary Benzinger •Has served as the Senior Attorney for the U.S. Army at the Pentagon Army and Air Force Legal Assistance Office since 2009. •She has been a Member of the Virginia State Bar since 1987. •Before coming to the Army, she was in private practice in Northern Virginia for 19 years with her primary practice being Family Law.
- 6. Estate Planning Basics andAdvance Directives https://learn.extension.org/events/2149 Barbara O’Neill, Ph.D., CFP® Rutgers Cooperative Extension This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Readiness Policy, U.S. Department of Defense under Award Numbers 2010-48869-20685, 2012-48755-20306, and 2014-48770-22587.
- 7. Key Points • Estateplanning is a process of specifying the distribution of assets upon death • Many people avoid estate planning but it's an important thing to do for many reasons • Estate planning has a number of steps and none of them are overly complicated or difficult • Specific issues exist for military families with regard to estate planning • There are lots of ways to learn more, and get support and assistance with estate planning • Military families have special estate planning considerations
- 8. Estate Planning IsRelated to Many Other Financial Planning Decisions Source: Madura, J. Personal Finance (2004), Pearson Education
- 9. So What Exactlyis Estate Planning? • Estate planning is the process of determining the distribution of your assets upon your death • Estate planning also covers the management of your personal affairs in the event of incapacity
- 10. In Other Words… •You give what you have • To whom you want • When you want • The way that you want • At the lowest possible cost (e.g., taxes and administrative costs) to yourself and loved ones • And have instructions left to make medical and financial decisions if you are unable to do so
- 11. Question What are commonestate planning “issues” you have observed?
- 12. Estate Planning Phases 1.Accumulation: Build estate through earnings, savings, investments, insurance, gifts, etc. 2. Distribution: Ensure that your estate is distributed as you wish after your death – Make sure important documents are accessible, understandable, and legally proper Nobody knows how long their accumulation phase will last and when their distribution phase will begin!
- 13. When Should YouPlan Your Estate? Today Mental Incapacity Catastrophic Illness Death Your Planning Opportunity Revocable Living Trust WillLiving Will Powers of Attorney Irrevocable Trust Source: Goldberg Law Center, PC
- 14. Benefits of EstatePlanning • Provides control over asset distribution process • Provides peace of mind • Reduces income taxes • Reduces estate administration cost and delays • Reduces/avoids estate taxes • Reduces/avoids gift taxes
- 15. The Perfect EstatePlan • Documents that are properly drafted • Documents that are regularly updated • Assets that are properly titled • No conflicts between titles to assets and a will • Communication of wishes among family • Regularly reviewed beneficiary designations: http://njaes.rutgers.edu/money/pdfs/beneficiary-designations.pdf
- 16. What Is Includedin an Estate? Assets Included in definition of “Estate” •Real property •Life insurance policies (face value) •Checking, savings, CDs, other liquid accounts •Business Interests – Sole Proprietor/Corporation/ LLC/ Partnership •Stocks, bonds, mutual funds, annuities •Retirement and pension plans •Personal property
- 17. Why People Avoid Gettingan Estate Plan? • Cost (real or perceived) • Thinking that your estate is too small to support the expense of planning • Fear of dying (“jinx factor”) • Uncertainty about people to name in legal documents • Uncertainty about finding legal advisors • Other?
- 18. Estate Planning Process GrossEstate Your Will Non-probate transfers Jointly owned property Life Insurance IRAs 401(k)s, 403(b)s, TSP Annuities Assets with named beneficiaries Planned distributions Property titled in your name Probate Process Adapted From: Goldberg Law Center, PC
- 19. Probate Process • Legalprocess by which a will is proved valid or invalid and the estate of a decedent is administered • Involves paying a deceased person’s debts and retitling that person’s individually owned assets to the names of heirs listed in a will • Executor files forms in probate court, provides a copy of the will, prepares a list of assets and liabilities of deceased, pays debts and sells necessary assets • Typically opens a bank account for this purpose Resource: http://definitions.uslegal.com/p/probate/
- 20. Ways to AvoidProbate • Own property jointly with survivorship rights • Beneficiary designations (insurance policies, IRA, 401(k), etc.) • Use a revocable or irrevocable trust • Make lifetime gifts Note: It is often difficult to totally avoid probate: automobile and pro-rated refund payments often need to be probated
- 21. How to Distribute Assetsto Heirs • Outright – No protection • In Trust – Creditor protection – Estate tax protection – Self protection (e.g., spendthrift heirs) – Predator protection
- 22. Common Estate Planning ToolsDuring Your Lifetime • Power of Attorney • Gifting • Revocable Living Trust • Guardianship (encompasses all personal affairs of protected person including support and health care) • Conservatorship (limited to the management of property and financial affairs of protected person)
- 23. Common Estate Planning ToolsAfter Your Death • Will • State Intestacy Laws • Joint Tenancy • Beneficiary Designations • Revocable Living Trust
- 24. Preparing a Will •Specifies how your estate should be distributed upon your death • If can also identify a preferred guardian for surviving minor children • Have an attorney draft your will to avoid difficulties • A standard simple will generally cost between $300 to $500
- 25. Will Formats • HolographicWill – Will that you write, date and sign, entirely in your handwriting – May not be recognized in some states • Formal Will – Usually prepared with an attorney’s assistance – Must date, sign, and have proper witnesses • Statutory Will – A type of formal will on a preprinted form – Available online or from a stationery store – May include “boilerplate” provisions not in the best interest of heirs
- 26. Question Why don’t manypeople have wills?
- 27. Key Designees ina Will Executor: Person willing and able to execute provisions of someone’s will (can be family member, friend, lawyer, etc.) Tasks may include: • Preparing an inventory of assets • Collecting any money due and paying off debts • File all income and estate tax returns • Decisions about investing or selling assets to pay debts or provide income • Distribute the estate and make financial accounting to beneficiaries Guardian: Person who assumes responsibility for providing personal care to the minor children of a deceased person and/or managing the estate for them
- 28. • Reasons toReview a Will: – You move to a new state with different laws – You have sold property mentioned in the will – Size and composition of your estate has changed – You have married, divorced or remarried – Potential heirs are born or have died • Adding a Codicil – Document that explains, adds, or deletes provisions in an existing will – Appropriate for minor revisions Altering or Rewriting a Will
- 29. Requirements for Preparing aWill • Attain legal age of majority: Age 18 in most states • Mentally competent • Not under undue influence of others • Must be signed and dated; video will supplement? • 2 or 3 witnesses who are not beneficiaries (in most states) • Preparation by an attorney highly recommended Resources: http://www.lectlaw.com/filesh/qfl06.htm http://nationalparalegal.edu/willsTrustsEstates_Public/ExecutionValidityCompone
- 30. Sample Will Language Exhibit20.1: A Sample Will Source: Madura, J. Personal Finance (2004), Pearson Education
- 31. Sample Will Language Exhibit20.1: A Sample Will Source: Madura, J. Personal Finance (2004), Pearson Education
- 32. Wills Can FallShort of Estate Planning Goals • Won’t provide for disability or incapacity • Won’t necessarily transfer what you have: – to whom you want – the way you want – when you want • Won’t avoid the probate process Adapted From: Goldberg Law Center, PC
- 33. Advanced Estate Planning Tools •Gifting programs • Charitable trusts (lead trust, remainder trust) • Other irrevocable trusts • Special needs trusts • Life insurance trusts • Trusts for minor children Adapted From: Goldberg Law Center, PC
- 34. Will vs. RevocableLiving Trust ProbateProbate My PropertyMy Property HeirsHeirs Property inProperty in My LivingMy Living TrustTrust (No Probate)(No Probate) HeirsHeirs Adapted From: Daniela Lungu, Attorney at Law
- 35. Trusts Legal document thattransfers assets to manage for designated beneficiaries; fee usually based on AUM •Grantor (Trustor): Person who creates a trust •Trustee: Person (e.g., family member, friend, lawyer) or financial institution (e.g., commercial bank) named in a trust to manage trust assets for beneficiaries •Beneficiary: Person(s) who receive the benefits of a trust (e.g., income and assets)
- 36. Types of Trusts LivingTrust (a.k.a., “Inter vivos trust”) A trust to which someone assigns the management of their assets to a trustee while they are living • Revocable Living Trust: A living trust that can be dissolved • Irrevocable Living Trust: A living trust that cannot be changed, although it can provide income to the grantor Testamentary Trust • Established by your will; takes effect after death http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/boo
- 37. Pros and Consof Trusts • Benefits of Trusts: – Avoids probate: transfers assets quickly and provides privacy – Frees grantor from managing assets – Provides income for survivors • Revocable Trust – Grantor retains the right to end the trust or change its terms during lifetime – Does not provide shelter assets from federal or state estate taxes • Irrevocable Trust – Grantor cannot change the terms once instituted – Used to reduce estate taxes
- 38. What If YouDo Nothing? • At Incapacity (e.g., brain dead on life support) – Guardianship/Conservatorship – Court controls assets • At Death – Court proceeding to determine who will be guardian for minor children – Assets distributed according to state law – intestacy Failure to do advanced planning for larger estates: – Family money goes to taxes and legal expenses instead of to heirs – Kids blow inheritance – Control issues and fighting among family members left behind Adapted From: Daniela Lungu, Attorney at Law
- 39. Intestacy: What Happens? •You die without a will • The state distributes your assets according to a pre- determined formula (“My State Will”) – Typically splits property between surviving spouse, children – http://www.mystatewill.com/statutes/statute_links.htm • May mean the state will decide on a guardian for your children – Very complicated if a “blended” family • Generally takes longer to settle an estate and costs more (e.g., bonding an appointed administrator) http://www.nolo.com/legal-encyclopedia/how-estate-se
- 40. Celebrity Estate Planning HorrorStories • Jerry Garcia of the Grateful Dead band • Elvis • Anna Nicole Smith • Chief Justice Warren Burger • Casey Kasem • Tom Clancy http://wfplaw.com/law-news/estate-planning/celebrity-estate-planning-horror-stories.html http://www.clearcounsel.com/estate-planning-horror-stories/ http://trialandheirs.com/blog/celebrities/top-10-celebrity-stories-spark-holiday-estate-plann
- 41. Taxes and EstatePlanning • Estate Taxes (Federal and Some States) – Tax on value of property at death – Based on fair market value of estate assets (minus estate liabilities) – $5,430,000 federal estate tax exclusion in 2015 – Maximum federal estate tax rate: 40% (taxable estates > $1 million) • Estate and Trust Income Taxes – Estates and certain trusts must file tax returns • Inheritance Taxes – Tax on property left by a person in their will – Imposed by states: http://www.forbes.com/sites/ashleaebeling/2014/09/11/where-not-to-die-in-2015/ – Tax rate generally based on heirs’ relationship to the deceased • Gift Taxes – Tax on gifts given by one person to another in a single year – Imposed by Federal government and two states (MN and CT) – $14,000 annual federal gift tax exclusion in 2015; inflation indexed
- 42. More About EstateTaxes • It is important for affluent households to calculate the value of their estate periodically to plan appropriately if net worth exceeds the estate tax exclusion – Federal estate tax affects only about 0.12% of estates • May want to consider state estate taxes in retirement housing decisions • Portability of federal estate tax exemption between married couples is permanent (for now) http://wills.about.com/od/2015-Estate-Tax-Rules/fl/Overview-of-2015-Estate-Tax http://blogs.wsj.com/totalreturn/2014/10/30/estate-tax-exemption-for-2015-annou
- 43. Question What 2 statesare the worst for estate taxes?
- 44. Timing Is Everything! Scenario#1 $20,000 Original Basis $180,000 Current Value $160,000 Appreciation If you gift house DURING your lifetime, the recipient is obligated to pay capital gains tax on the full appreciated value Scenario #2 Source: David Ennis, Esq. $20,000 Original Basis $180,000 Current Value $160,000 Appreciation If you gift house through a will or trust, the recipient is ONLY obligated to pay capital gains tax on any appreciated value that occurs AFTER your death (theoretically $0)
- 45. Advance Directives Broad Definition Instructionsabout a person’s wishes, goals, and values regarding what will be done in case he or she become incapable of making decisions Three Common Documents: •Living Will: Specifies desired medical treatment •Health Care Proxy (Durable Power of Attorney for Health Care): Designates person to make health care decisions •Durable Power of Attorney: Designates person to make financial transactions (e.g., pay bills, make deposits, sign checks)
- 46. More About Advance Directives •Power of Attorney authorizes someone to legally act on someone’s until the creator revokes it or dies • Estate planning and advance directive documents need to be kept in safe, convenient places (copy with your attorney) – Original: Safe deposit box (with photocopies at home), desk drawer or file cabinet at home (fire resistant), wrapped in plastic in freezer? – Back-Up Copies: Cloud storage, scanned files on flash drive, family • Key individuals need to know where documents are kept! http://www.silvesterlaw.com/index.php?option=com_content&view=article&id=59:where-sh http://wills.about.com/od/preparingtodraftaplan/a/storedocuments.htm
- 47. Living Wills • Allowsyou to specify whether or not to be kept on artificial life support • “Do Not Resuscitate” (DNR) orders; feeding tubes • Guide choices for doctors and caregivers when someone is seriously injured or near end of life • Avoids unnecessary suffering by patient • Relieves caregivers of decision-making burdens • Reduces disagreement among family members • Not just for older adults! http://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/a
- 48. Letter of LastInstruction • Not legally binding • Provides heirs with valuable information • Could include: – Funeral/memorial service preferences – Names of people to be notified of your death – Location of bank accounts, safe deposit box, etc. – Disposition of personal effects (untitled property) Resource: Who Gets Grandma’s Yellow Pie Plate? http://www.extension.umn.edu/family/personal-finance/who-gets- grandmas-yellow-pie-plate/
- 49. Digital Assets • Personalinformation that is stored electronically on either a computer or online “cloud” server account • Often provide access to financial assets • Generally require a username and/or password or PIN to access and can be difficult or impossible to retrieve if someone is incapacitated or passes away Resources: http://www.extension.org/pages/72624/dou-you-know-your-digital- assets#.VZ_4Wk3bKM8 (eXtension article) http://njaes.rutgers.edu/money/pdfs/Digital-Assets-Worksheet.pdf (Digital Assets Inventory worksheet)
- 50. Estate Planning Resources •Prepare Your Estate Plan (eXtension): http://www.extension.org/pages/15749/prepare-your-estate- plan#.VZ_7k03bKM9 http://www.extension.org/pages/15800/prepare-your-estate- plan:-print-this-lesson#.VZ_8iE3bKM8 • Money Talk: A Financial Guide for Women, Session V, Planning for Future Life Events (Rutgers Cooperative Extension): http://njaes.rutgers.edu/money/pdfs/session-v.pdf
- 51. Estate Planning Resources •Getting Ready for Estate Planning (Purdue University): https://ag.purdue.edu/programs/areyouprepared/readyestate/P ages/default.aspx • Estate Planning (North Carolina State University Extension): http://forestry.ces.ncsu.edu/estate- planning/ • Annual Limits Relating to Financial Planning (College for Financial Planning): http://www.cffpinfo.com/annual-limits/
- 52. Question What are someother good estate planning resources?
- 53. Estate Planning Basics andMilitary Issues
- 54. Disclaimer • The opinionsexpressed are those of the presenter and are not those of the Department of the Army or the Department of Defense. • This presentation is not intended to be a substitute for legal or tax advice. Rather, it is designed to create an awareness of the need for estate planning and to help individuals become better acquainted with estate planning terminology and documents. – State laws vary - be sure to check your state laws
- 55. • Servicemember andspouse residence and domicile • Review probate v. non-probate asset identification • Estate Planning for children and blended families • Other Military Issues • Extra Stuff Briefing Topics
- 56.
- 57. • Interchangeable underSCRA • Denotes a permanent home, a place where intend to return • SCRA protects SM from taxation by state in which serving under orders unless that state is also the SM’s domicile • Domicile and residence must be established • NOT necessarily “home of record” – that’s where SM lived when came on active duty. “Domicile” and “Residence”
- 58. • Amended ServicemembersCivil Relief Act effective 2009: – Spouse can keep established residence or domicile for purposes of personal, income, or property taxes. (retroactivity for income tax only) – Has to be same residence as SM spouse – Spouse cannot just “pick” a state of residence – Spouse still has to comply with tax laws in residence state – States may probably challenge claims of residence Military Spouse Residency Relief Act (MSRRA)
- 59.
- 60. Probate v. Non-probateAssets – the “Orphan” Property Test - Probate: “orphan” property Solely titled Just “joint” “Tenants in Common” Non-probate: “Joint with Right of Survivorship” “Tenants by the Entirety” Pay on Death/ Transfer on Death (P.O.D./T.O.D.) (usually) Beneficiary Designations Intervivos Trust Property 60
- 61. Probate Avoidance: Stateswith “Transfer on Death” Statutes • Cars & Real Property: AZ, AR, IL, IN, KS, MO, NE, NV, OH, VA • Real property only – AK, CO, DC, HI, MN, MT, NM, ND, OK, OR, SD, TX (1 Sep 15), WA, WV, WI, WY • Cars only : CA, CT, DE, VT 61
- 62. How Living TrustsAvoid Probate Example • I own a house in my own name alone. If I die, my house is an “orphan” and must go through the probate process to be given to my brother who is the sole heir under my Will. I don’t want probate. • So, I establish “The Mary Benzinger Living Trust.” In that document, it states my house is to be transferred to my brother upon my death. • I will record a deed in land records selling my house from me, Mary Benzinger, to the “The Mary Benzinger Living Trust” • Then, at my death, my house is no longer an “orphan” because the trust own it. At my death the trust is followed and the trustee transfers the house to my brother outside of probate. 62
- 63.
- 64. Poor Planning and MinorChildren • Assets left to minor by name: – Court appoints guardian of property and person – Strictly controls finances – Child inherits all at legal age!! • Special needs?? • Bad idea to designate caregiver adult as beneficiary – Money belongs to caregiver… NOT to your child • Solution: – Trust for minors in Will – Designate the Trustee as beneficiary
- 65. Testamentary Trusts - Establishedat Grantor’s death in the Will - For minor children, special needs... - You control when and how $$ get distributed Separate trusts for each beneficiary Single trust for all beneficiaries Distribution of income at what age Distribution of the trust principal at what age.
- 66. • You havethree children ages 15, 13 and 11. If you die, you want there to be a single pot for all the kids and the trust to last until the youngest turns 21. • You have two children ages 25 and 13. You don’t want the oldest to wait until the youngest turns 21 for his distribution so you’ll create a testamentary trust for only the youngest child. • You have a 25 year old daughter with a substance problem. You can create a testamentary trust for the life of the child (or an age of your choosing) with Trustee’s discretion on distribution if substance abuse is an issue. Examples
- 67. • The “ResiduaryTrust” – For married couples with children from their relationship: Everything to my spouse and if my spouse does not survive me then in trust for the children. – For single parent: Everything in trust for the children. • Typical will structure: – Devise of real property – Devise of personal property – Specific bequests – Residuary estate (everything else not covered above) Single Family Unit Plan
- 68. • Most stateshave statutory Uniform Gift to Minors Act or Uniform Transfer to Minors Act not both. • Good for small amounts • Can be accomplished by beneficiary designation: “to John Jones as custodian for Mary Smith under the Virginia Uniform Trust for Minors Act (21)” • Becomes child’s money at 18 or 21 UGMA/UTMA
- 69.
- 70. The “Blended” Family For“blended” families, the first-to-die’s children may be left out in the cold – Surviving step-parent has no obligation to support spouse’s biological children – Survivor may change will, remarry, squander estate – “Elective” share forecloses disinheriting spouse completely 70
- 71. For blended families,the first-to-die’s children may be left out in the cold Example: John has two children from his first marriage. He marries Betty. His will says everything to Betty and, if Betty doesn’t survive, then to his children. When he dies Betty gets everything. Betty can: -change her will and exclude John’s children -remarry and leave everything to new husband -squander estate “Elective” share forecloses disinheriting spouse completely Blended Family Issues
- 72. Blended Family Plan •The “Preresiduary Trust” - for children from prior relationship –Takes effect on your death (does not require death of the spouse) • The “Residuary Trust” – for children of current relationship –Requires both parents to be deceased 72
- 73.
- 74. DD-93 - RecordOf Emergency Data • Lists emergency contact information • Names the $100,000 death gratuity beneficiary – Can name more than one – If none named, statutory distribution applies – Can now name testamentary trust for minors • Names beneficiary for unpaid pay • Names person authorized to direct disposition of remains
- 75. Agent for Dispositionof Remains • For SMs: DD-93 – (1) Surviving spouse of the decedent. (2) Blood relatives of the decedent. (3) Adoptive relatives of the decedent. (4) If none, a person standing in loco parentis to the decedent. • For Civilians: Many states have statutes permitting you to make a binding written designation of agent. • Conflict b/w DD93 and state laws?? 75
- 76. Servicemembers Group Life Insurance •Up to $400,000 life insurance policy • Up to $100,000 life insurance for spouse (FGLI) • On SGLV 8286 - Can name beneficiaries including testamentary trust (N.B. testamentary trust not created by designation alone, must be created in the Will)
- 77. Death Benefits forMilitary • DD-93 $100,000 death gratuity • If in govt housing and Line of Duty death, may remain in housing for 365 days • Dependency and Indemnity Compensation (DIC) (line of duty or service connected) for spouses and children paid by the VA • Survivor benefit - The initial annuity paid to a surviving spouse is equal to 55 percent of the retired pay to which the member would have been entitled based upon years of active service if retired on the date of death (if the member was retirement- eligible). • The annuity is reduced by the amount of the monthly DIC payment awarded and paid to the surviving spouse by the Department of VA. When the surviving spouse reaches age 62, the annuity is reduced to 35 percent.
- 78.
- 79. Estate Plan “Graband Go” Book Make a small notebook with estate planning information in it: -Copy of the Will and where original can be located -Copy of Advanced Medical Directive/Healthcare POA -Power of Attorney -Copies of beneficiary designations (banks, investments, insurance) -List of Financial institutions you deal with -Internet access info (for example “See thumb drive in fire safe” , etc.) -Copy of funeral contracts -Letter of instruction -List of people/institutions you’d like contacted 79
- 80. Health Care “Graband Go” Book Make a small notebook with emergency information in it: -Advanced Medical Directive -Power of Attorney/(in loco parentis for kids) -Medications and doses -Copies front and back of insurance cards and photo ID Cards -List of allergies -List of doctors, pharmacies (with fax numbers) -List of emergency contacts -Dates of important medical events/procedures -Extra blank pages for notes, etc. 80
- 81. Resources • Video ofmy 2 hour Estate Planning Briefing: https://www.dvidshub.net/video/407856/judge-advocate-generals- office-estate-planning-brief
- 82. Key Take-Aways • Estateplanning is not just for the wealthy: Even simple estates need plans; no magic number • Incapacity can strike at any time: Failing to plan means court will appoint a guardian • Health Care PoA and Durable PoA designate an agent to act on your behalf • Wills must be property signed and witnessed • Intestacy cases distribute assets according to state law • Executor is personally responsible to pay debts and distribute property • Understand military rules for domicile and residence
- 83. Key Take-Away Applications •Prepare or review your estate plan; look for gaps • Have documents in place to address potential incapacity • Review your PoA designees and discuss your wishes with them (never “surprise” people with key roles after you die!) • Review your will periodically and revise when needed • Don’t die intestate! • Prepare a letter of last instructions and digital assets inventory • Think carefully about choosing to be an executor or performing executor duties • Know how to identify probate v. non-probate assets • Take necessary steps to “non-probate” if possible • Explore family dynamics and plan around them ( blended families, special needs, etc.) • Have a storage plan for your estate and health care documents
- 84. Contact Information: Barbara O’Neill oneill@aesop.rutgers.edu Twitter:@moneytalk1 Mary M. Benzinger mary.m.benzinger.civ@mail.mil This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Readiness Policy, U.S. Department of Defense under Award Numbers 2010-48869-20685, 2012-48755-20306, and 2014-48770-22587.
- 85. Evaluation and Continuing EducationCredits The Personal Finance Concentration Area offers 1.5 credit hour(s) from AFCPE for AFC- credentialed participants and 1.5 general CEUs from FinCert. for today’s webinar. To receive CEUs, please complete the evaluation and post-test found at: https://vte.co1.qualtrics.com/jfe/form/SV_agaoCS 6ZJDQJTnL Must pass post-test with an 80% or higher to receive certificate.
- 86. Personal Finance &Family Transitions Upcoming Event Military Family Financial Transitions: Changes in Income, Benefits & Money Management • Tuesday, October 13, 2015 • 11 a.m. ET • https://learn.extension.org/events/2163 • For more information on MFLN- Personal Finance go to: http://blogs.extension.org/militaryfamilies/personal- finance/
- 87. Find all upcomingand recorded webinars covering: http://www.extension.org/62581 Community Capacity Building This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Readiness Policy, U.S. Department of Defense under Award Numbers 2010-48869-20685, 2012-48755-20306, and 2014-48770-22587.
Editor's Notes
- #59 The effective date for the tax benefits of the MSRRA depends on the nature of the issue. Income tax benefits accrued as of tax year 2009, but the application of the law to personal property tax could differ from state to state. In Virginia the taxing authorities took the position that the effective date was the date the act was signed into law which was November 11, 2009 because that section of the act did not specifically state that the effective date was January 1, 2009. This issue becomes less important as time passes. It was more significant in 2010 right after the law passed.