estate planning 101
DESCRIPTION
Plan now to protect yourself and your loved ones.TRANSCRIPT
![Page 1: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/1.jpg)
Sun City West, AZ
Estate Planning 101
Law Office of Dennis Caufield, LLC
![Page 2: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/2.jpg)
Insurance
Policies
“What is an “Estate?”
CashStocks
JewelryIRA’s
Investments
Your Home
Income Properties
Automobiles Antiques
Bonds&
![Page 3: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/3.jpg)
3 Basic Keys to Estate Planning
Maintaining control during incapacity
Quick & cost effective wealth transfer at death
Protecting beneficiaries from themselves & others
![Page 4: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/4.jpg)
When Should You Plan Your Estate?
TodayMental
IncapacityCatastrophic
Illness Death
Your Planning Opportunity
Living Trust
WillLiving Will
Powers of Attorney
![Page 5: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/5.jpg)
2 Platforms for Planning
Will based plan
Trust based plan
![Page 6: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/6.jpg)
Beneficiary(ies)
Will Based Plan
Properly titled assets
![Page 7: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/7.jpg)
What is a Trust?
“a fiduciary relationship with respect to property, subjecting the person by whom the title to the property is held to equitable duties to deal with the property for the benefit of another person, which arises as a result of a manifestation of an intention to create it.”
Restatement Second of Trust §2
![Page 8: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/8.jpg)
What is a Trust?Grantor
Trustee(s)
Beneficiary(ies)
![Page 9: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/9.jpg)
#1 Mistake
Failing to Address Health Care Decisions
![Page 10: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/10.jpg)
Online Storage of Healthcare Documents
Free Service Offered by the Arizona
Secretary of State
Visit www.azsos.gov/adv_dir
![Page 11: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/11.jpg)
#2 Mistake
Failing to Plan for HIPAA
(Access to Medical Records)
![Page 12: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/12.jpg)
#3 Mistake
No plan to control financial & property matters during incapacity
![Page 13: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/13.jpg)
No Wealth Transfer Strategy
#4 Mistake
![Page 14: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/14.jpg)
Intestacy
James Dean:– Died at age 24 without a will– Entire estate, including licensing fees, passed
to his father, who had abandoned him as a child.
– Licensing fees generate $1 - $3M annually.
![Page 15: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/15.jpg)
#5 Mistake
Failure to Understand & Plan
For Death Taxes
![Page 16: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/16.jpg)
Federal Estate Federal Estate Tax Tax
YEAR EXCL. AMT. TOP TAX RATE
2001 $675,000 55%
2002-2003 $1,000,000 49-50%
2004-2005 $1,500,000 47-48%
2006-2008 $2,000,000 45-46%
2009 $3,500,000 45%
2010 Full Repeal N/A
2011-2012 $5,000,000 35%
2013 $1,000,000 55%
![Page 17: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/17.jpg)
#6 Mistake
Thinking Children – Minor And Adult – Don’t Need Inheritance Protection
![Page 18: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/18.jpg)
Predators, Spend-thrifts
The Woolworth Misfortune– Granddaughter of Woolworth founder, Barbara Hutton– At age 10, she inherited $25 Million in trust.– Under the terms of the Trust, Barbara received the
entire Trust ($50 million) outright with no strings attached at the age of 21.
– 46 Years and 7 husbands later, she died at age 66 with a mere $3,000.
– Years of relentless exploitation, spousal abuse, drug addiction and outrageous, uncontrolled spending.
![Page 19: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/19.jpg)
#7 Mistake
Failing to Transfer “Values”
![Page 20: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/20.jpg)
#8 Mistake
Not Preserving Tax Deferral Benefits of
Retirement Plans
![Page 21: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/21.jpg)
HUGE LOSS When Your IRA is Cashed-out Early and Spent!
Assumes $100,000 at age 40 earning 6% andChild fully withdraws and must pay the tax due
A difference of over $ 400,000 on a $100,000 IRA!
Child’s Cum. Withdrawals+Balance
Age Remains Invested
Cash Out
50 $ 170,352 $ 65,000
60 $ 264,583 $ 65,000
84 $ 474,953 $ 65,000
![Page 22: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/22.jpg)
Child’s Cum. Withdrawals+Balance
Age Remains Investestedt
Cash Out
50 $ 170,352 $ 98,361
60 $ 264,583 $ 137,062
84 $ 474,953 $ 158,983
Still a BIG LOSS When Your IRA is Cashed-out Early and Invested!
Assumes $100,000 at age 40 earning 6% andChild fully withdraws and must pay the tax due
A difference of over $ 300,000 on a $100,000 IRA!
![Page 23: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/23.jpg)
#9 Mistake
Failing to Organize and Consolidate
![Page 24: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/24.jpg)
#10 Mistake
In 2nd marriages, failing to protect your spouse, and your kids
![Page 25: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/25.jpg)
#11 Mistake
Failing to Plan for Tangible Personal
Property
![Page 26: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/26.jpg)
#12 Mistake
Failing to Name a Guardian for Minor or Incapacitated Children
![Page 27: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/27.jpg)
#13 Mistake
Believing Estate Planning is a “One-Time
Event”
![Page 28: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/28.jpg)
Where Do You Go From Here?Where Do You Go From Here?
![Page 29: Estate Planning 101](https://reader035.vdocument.in/reader035/viewer/2022081401/5587d013d8b42a9c7c8b46e9/html5/thumbnails/29.jpg)
“Without counsel plans go wrong, but with many advisers they succeed." Proverbs 15:22
Free Initial Consultation
Law Office of Dennis Caufield, LLCPlan Today for a Secure Tomorrow