Estate management is about preserving the assets you’ve spent a lifetime building. It’s about protecting your spouse, children, or other heirs, and ensuring that your assets are distributed how and when you want them to be. Finally, estate management is about managing the amount of estate taxes that may be due after your death. There are some fundamental estate management principles that can enable you to manage your financial and personal affairs during your lifetime and distribute your wealth after death.

1. Estate Matters
Principles of Preserving Wealth
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2. Financial Matters Series
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3. Estate Management Objectives
gYour Lifetime
rin e your financ
u nag
D a ial
a
M nd
•
er Your Death
ft ibute
pe
A istr
rso
you
D r
nal
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affairs
alth

4. Click to Play

5. Steinbrenner’s Approach
“…Aggressive
and Ongoing…”
Source: CCH Tax Briefing, December 2010

6. Estate Management Pyramid
Tactics
Critical
Documents
How Estate
Taxes Work

7. History of Estate Taxes
Undeclared War (1797 — 1802) Estate Laws
(1775 - Present)
Civil War (1862 — 1870)
Spanish–American War (1898 — 1902)
Revenue Act of 1916 (1916 — )
Job Creation Act (2010 — 2012*)
1775 1800 1825 1850 1875 1900 1925 1950 1975 2000
* The estate tax rates established by The Economic Growth and Tax Relief Act of 2001 expired in 2010. A modified version was reinsti-
tuted by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which is set to expire in 2012.
Source: Field Guide, 2010

8. Two Formulas for Estate Taxes
“Official” Formula “ ick” Formula
Qu
$7,500,000 Gross value $7,500,000 Gross value
-$5,000,000 Exemption
$2,605,800 Tentative tax $2,500,000 Taxable amount
- $1,730,800 Unified credit x 35% Tax rate
$875,000 Estate tax $875,000 Estate tax
This is a hypothetical example used for illustrative purposes only. Estate tax laws will
change. The current estate tax law is scheduled to expire in 2012.

9. Who Has a Will?
Source: Forbes, March 1, 2010

10. A Will is the Cornerstone of
Your Estate

11. Probate is a Matter of
Public Record
Can you avoid
probate?

12. Critical Estate Management Documents
Healthcare Documents: Fin
ancial Documents:
•
Living Will •
Joint Ownership
•
Power of Attorney •
Durable Power of
•
Durable Power of Attorney
Attorney for Healthcare •
Living Trust

13. Healthcare Documents
Provides specific
instructions about your
medical care.
•
Living Will
Authorizes someone
•
Power of Attorney to handle legal and
financial decisions.
•
Durable Power of
Attorney for Healthcare Authorizes someone
to make healthcare
decisions on your
behalf.

14. Healthcare: Deciding in Advance
30 %
of seniors
faced crucial treatment
decisions they were unable
to make for themselves
Source: The New England Journal of Medicine, 2010

15. Financial Documents
Enables you to pass an
asset on to a co-owner
without probate.
•
Joint Ownership
Authorizes someone
•
Durable Power of to make legal and
financial decisions on
Attorney your behalf in case of
incapacity.
•
Living Trust
Enables the transfer of
assets to heirs without
going through probate.

16. Gifting Assets
Sample Year
$
13,000 to Recipient#1
$
13,000 to Recipient#2
$
13,000 to Recipient#3
2011
This is a hypothetical example used for illustrative purposes only. Estate tax laws will change. In 2011, the annual gift exclusion is
$13,000 per recipient.
Source: Internal Revenue Service, 2011

17. Trusts
• Avoid probate
• Not public record
• Effective management
& distribution
• Some control of
beneficiaries
• Difficult to contest

18. How Does a Trust Work?
Trust Trust
Assets

19. Life Insurance
IRS
Life
Insurance
Assets Irrevocable Trust
Assets
Irrevocable Trust

20. Crucial Considerations
What a
re your
Objecti
ves?
1.
2.
3.
4.

21. Estate Management

22. Financial Matters Series
Brandon Singer
BSinger@ProvidenceWP.com
11711 North Meridian Street
Suite 110
Carmel, IN 46032
http://www.ProvidenceWealthPartners.com