ESTATE PLANNING
WORKSHOP
by Tredway, Lumsdaine & Doyle, LLP
WHAT IS AN ESTATE?
Pension
Plan
IRAs
Life
Insurance
Bank
Accounts
Real
Estate
Business
Interests
Other
Assets
Stocks
Home
Profit
Sharing
Plan
ESTATE PLAN
COMPONENTS
WHY DO ESTATE PLANNING?
zAfter Death
• Control Who Receives Assets
• Pay Minimum Legal Fees, Taxes
zAt Incapacity
• Control Assets, Medical Decisions
COMMON ESTATE PLANS
PLAN # 1 WHAT IS A WILL
WHAT IS PROBATE?
WILLS AND INCAPACITY
GROUCHO MARX
WILLS AND DURABLE POWER
OF ATTORNEY
PLAN #2 DOING NOTHING
PLAN #3 JOINT TENANCY
1. Only Postpones Probate
2. Unintentional Disinheriting
3. Incapacity = Court Interference
4. Difficult To Remove Co-Owner
5. Lawsuits
6. Debts/Tax Problems
PLAN #4 GIVING AWAY YOUR
ASSETS
TAX-FREE
GIFTS
z $11,000 to $22,000
Per Year Per
Beneficiary
z Unlimited Tuition,
Medical Expenses
APPRECIATING ASSETS
ARE BEST TO GIVE AWAY
z Removes Asset and Future Appreciation
From Your Estate
z Asset Keeps Your Cost Basis
z Recipient Pays Capital Gains Tax When
Sold
GIVE ASSETS TO CHARITY
•Reduces Estate Taxes
•Reduces Income Taxes
•Does Not Affect Gift/Estate
Tax Exemption
•Lets You Decide Who
Your Money Will Help
PLAN #5 BENEFICIARY
TRANSFER
PLAN #6 REVOCABLE LIVING
TRUST
z Avoids Probate at Death
z Prevents Court Control of Assets at Incapacity
z Provides Maximum Privacy
z Quick Distribution of Assets to Beneficiaries
z Assets Can Stay in Trust
z Prevents Unintentional Disinheriting
z Reduces or Eliminates Estate Taxes
YOU KEEP CONTROL
z Buy/Sell Assets as Before
z Change/Cancel Any Time
z Trust Contains Your Instructions
Understanding
ESTATE TAXES
DETERMINING YOUR TAXABLE
ESTATE
Federal
Estate Taxes
35-49%
2,000,000
1,500,000
1,000,000
675,000
300,000
150,000
0
LIFE INSURANCE
BANK ACCOUNTS
INVESTMENTS
HOME
BUSINESS INTERESTS
IRA, OTHER
RETIREMENT BENEFITS
PERSONAL PROPERTY
BENEFITS
OF A CRT
z Convert Appreciated
Asset Into Lifetime
Income
z Pay No Capital
Gains Tax
z Reduce Income and
Estate Taxes
z Benefit Charity
SIX STEP
PLAN OF
ACTION
1. Inventory Asse