ESTATE PLANNINGESTATE PLANNINGWORKSHOPWORKSHOP

PRESENTED BYPRESENTED BYAllan M. Soto, Esq.Allan M. Soto, Esq.

7960 McFadden Avenue7960 McFadden AvenueWestminster, CA 92683Westminster, CA 92683

714-899-9671714-899-9671

WHAT IS AN ESTATEWHAT IS AN ESTATE??

PensionPensionPlanPlan

IRAsIRAs

LifeLifeInsuranceInsurance

BankBankAccountsAccounts

RealRealEstateEstate

BusinessBusinessInterestsInterests

OtherOtherAssetsAssets

StocksStocks

HomeHome

ProfitProfitSharingSharing

PlanPlan

ESTATE PLAN ESTATE PLAN COMPONENTSCOMPONENTS

WHY DO ESTATE PLANNING?WHY DO ESTATE PLANNING?

After Death• Control Who Receives Assets• Pay Less Court Fees, Taxes

At Incapacity• Control Assets, Medical Decisions

COMMON ESTATE PLANSCOMMON ESTATE PLANS

PLAN # 1PLAN # 1 WHAT IS A WILLWHAT IS A WILL

WHAT IS PROBATE?WHAT IS PROBATE?(ADMINISTRATION)(ADMINISTRATION)

GROUCHO MARXGROUCHO MARX

ADVANCE HEALTH CARE ADVANCE HEALTH CARE DIRECTIVEDIRECTIVE

PLAN #2PLAN #2 DOING NOTHINGDOING NOTHING

PLAN #3PLAN #3 JOINT TENANCY JOINT TENANCY

1. Only Postpones Probate2. Unintentional Disinheriting3. Incapacity = Court Interference4. Difficult To Remove Co-Owner5. Lawsuits6. Debts/Tax Problems

PLAN #4PLAN #4 GIVING AWAY YOUR GIVING AWAY YOUR ASSETSASSETS

TAX-FREE TAX-FREE GIFTSGIFTS

$14,000 to $28,000 Per Year Per Beneficiary

Unlimited Tuition, Medical Expenses

APPRECIATING ASSETS APPRECIATING ASSETS ARE BEST TO GIVE AWAYARE BEST TO GIVE AWAY

Removes Asset and Future Appreciation From Your Estate

Asset Keeps Your Cost Basis Recipient Pays Capital Gains Tax When

Sold

GIVE ASSETS TO CHARITYGIVE ASSETS TO CHARITY

•Reduces Estate TaxesReduces Estate Taxes

•Reduces Income TaxesReduces Income Taxes

•Does Not Affect Gift/Estate Does Not Affect Gift/Estate Tax ExemptionTax Exemption

•Lets You Decide Who Lets You Decide Who Your Money Will HelpYour Money Will Help

PLAN #5PLAN #5 BENIFICIARY BENIFICIARY TRANSFERTRANSFER

PLAN #6PLAN #6 REVOCABLE LIVING REVOCABLE LIVING TRUSTTRUST

Avoids Probate at DeathPrevents Court Control of Assets at IncapacityProvides Maximum PrivacyQuick Distribution of Assets to BeneficiariesAssets Can Stay in TrustPrevents Unintentional DisinheritingReduces or Eliminates Estate Taxes

LIVING TRUST VS. WILLLIVING TRUST VS. WILL

YOU KEEP CONTROLYOU KEEP CONTROLBuy/Sell Assets as BeforeChange/Cancel Any TimeTrust Contains Your Instructions

TESTAMENTARY TRUSTTESTAMENTARY TRUST

WHAT ARE TAX DEFERRED WHAT ARE TAX DEFERRED ACCOUNTSACCOUNTS

NEW IRA RULESNEW IRA RULES

UnderstandingUnderstanding

ESTATE TAXESESTATE TAXES

DETERMINING YOUR TAXABLE DETERMINING YOUR TAXABLE ESTATEESTATE

FederalFederalEstate TaxesEstate Taxes

40%40%

5,000,000

4,000,000

3,500,000

1,850,000

850,000

500,000

0

LIFE INSURANCE

BANK ACCOUNTS

INVESTMENTS

HOME

BUSINESS INTERESTS

IRA, OTHER RETIREMENT BENEFITS

PERSONAL PROPERTY

BENEFITSBENEFITS OF A CRTOF A CRT

Convert Appreciated Asset Into Lifetime Income

Pay No Capital Gains Tax

Reduce Income and Estate Taxes

Benefit Charity

SIX STEP SIX STEP PLAN OF PLAN OF ACTIONACTION

1. Inventory Assets/Debts

2. Write Down Your Objectives

3. Select a Professional to Help

4. Have Legal Documents Prepared

5. Put Plan into Action

6. Review and Change As Needed

Oth

erO

ther

Ass

ets

Ass

ets

PensionPensionPlanPlan

Lif

eIn

sura

nce

BusinessBusinessInterestsInterests

ProfitProfitSharingSharing

PlanPlan

BankBankAccountsAccounts

StocksStocks

Hom

eH

ome

IRA

sIR

As

Rea

l Est

ate

Rea

l Est

ate

SUCCESSFUL ESTATE SUCCESSFUL ESTATE PLANPLAN