prepare advice from an attorney. name of facilitator, title, organization name of attorney legally...
TRANSCRIPT
Prepare
Advice From An Attorney
Name of Facilitator, Title, Organization
Name of Attorney
Legally Secure Your Financial Future: Organize, Communicate, Prepare
Your university logo can be inserted here
Legally Secure Your Financial Future: Organize, Communicate, PrepareCooperative Extension
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Seminar Objectives
Participants will:
Recognize legal problems associated with estate planning
Gain information to prevent or solve legal problems
Develop a corrective plan of action to get their legal affairs in order
Get generalized answers to legal questions
Legally Secure Your Financial Future: Organize, Communicate, PrepareCooperative Extension
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The Estate Planning Process
Communicate
Organize
Prepare
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Agenda
Wills Probate Trusts How property is titled Additional topics
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Case Studies
Insert relevant case studies
State Specific
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“Everyone needs an estate plan. If you do nothing, the state will decide through state law how to dispose of
your possessions after death.”S. Badenhop- Estate Planning: Wills and Probate in Kentucky
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If You Were to Die Tomorrow…
Who would get my property? Who would care for minor
children/parents/spouse/partner? Would the family business continue? Would the estate be settled properly? Would taxes, fees, and costs be held to a minimum? Would a trust have been best for you?
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Transferring Resources
Will – how you want your resources distributed
Gifts – prior to death can reduce the taxes on your estate
Trusts - a tool for transferring property
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Wills & Probate Terms
Will - legal document that gives instructions to be carried out after your death
Probate - to prove or validate the will
– process to carry out your wishes according to the will
Personal Representative (executor or executrix)– person who will be responsible for carrying out
your wishes
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Steps in ProbateOverview of the process
Personal Representative Probate CourtSubmits Will to Probate
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Choose Your Personal Representative Carefully
Able to do the job Willing Convenience/proximity Can keep peace among family
members Legal requirements
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Duties of the Personal Representative
Proves the will in probate court Collects & inventories property Pays bills & collects debts Files tax returns Manages probate property Defends or brings lawsuits, if needed Distributes property
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Why Have a Will?
Allows you to decide how your assets are distributed after death
Leaves more resources to distribute to heirs
Appoints a guardian of your choice for minor children – Important to name a second alternative
guardian as backup
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Dying Without a Will
Intestate - dying without a valid will __________ laws would govern asset distribution May pay more in taxes for large estates
Insert your state
State specific
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Property Distribution Without a Will in Idaho
With a Spouse Separate property
– ½ (if parents or issue*) (other ½ goes to issue* or, if no issue*, to parents)
– 100% (if no parents or issue*) Community property
• 100%
*issue=children/grandchildren etc.
State specific
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Property Distribution Without a Will in Idaho
No Spouse Children Parents (if no children) Brothers & sisters or descendant of brothers and sisters
only (if no children and no parents) Grandparents or descendants of grandparents (if no
children, no parents, no brothers or sister or descendants of brothers or sisters)
No relative – goes to the state.
State specific
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Non-titled Property Transfer
in Idaho Personal Effects Statement
– Family heirlooms
– Keepsakes
State specific
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A Valid Will
Elements that must be present in a valid will Age requirement – legal age Individual has sound mind Intended to transfer property Written Properly signed Properly witnessed Properly executed
State Specific
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Writing Your Own Will
A handwritten will is called a Holographic will
It must be signed by the writer– Frequently ambiguous or defective
– Can cause delay, expense, and litigation
Consult an attorney State Specific
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Self-Proving Affidavits
Self-proving affidavits eliminate the necessity of having witnesses go to court to testify that they witnessed the signing of a will
As a part of the will, the affidavit is valuable as proof of the will
Also valuable because witnesses are often dead or unavailable
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Assets In A Will
A will can be simple or detailed– Some assets with beneficiaries pass outside a will
Assets with beneficiaries– Life insurance policies– Pension funds– IRA’s
Review beneficiary designations annually or when things change
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Beneficiary Designations
Life Insurance IRA’s (Individual Retirement
Account) POD (Pay-on-death) TOD (Transfer-on-death) Other
“ Will ” your property to a person or institution after death
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Changing A Will
Change a will upon:
– Marriage, remarriage, or divorce
– Birth of a child
– Move to another state
– Acquisition of additional assets
– Changes in federal and state laws
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Effect of Divorce on Will
Add state specific laws, for example:
A divorce in some states revokes the entire will while in another state it revokes only those provisions in the will in favor of the divorced spouse.
Replace this with your state laws. You may need to add another slide to continue with state laws.
State Specific
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What is a Trust?
Legal arrangement Property held by one person for benefit of
others Property managed by a trustee
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Why Have a Trust?
Supplement for a will Avoids probate To provide structure for beneficiaries who
might not be able to handle their own affairs
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Types of Trusts
Living trust– Revocable or irrevocable
Testamentary trust– Revocable until death or incapacity
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Should I Have a Living Trust?
PRO:
Avoids Probate Can administer property in different states
with one document Can manage affairs during life Beneficiary may receive assets faster Privacy
Individual Decision
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Should I Have a Living Trust?
CON:
Expensive to draft – Expense of updates
– Costs can outweigh the
benefits
Not court supervised On-going need to update
Individual Decision
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Estate Planning Scams!
Beware of aggressive sales pitches– Save thousands of dollars
– Falsely inflate cost and burden of probate
– Falsely imply product is sold by reputable group
Consult an attorney
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Generic Will Kits and Forms
Perceived advantages:– Widely available on the internet, in
bookstores, in office supply stores, etc.– May be simple to use and lower in cost than
a private attorney
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Generic Will Kits and Forms
Warning: Have an attorney review any will you prepare yourself – Limited income consumers may utilize
services such as legal aid
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Disadvantages of Generic Will Kits and Forms
Some situations are more complicated and may require an attorney’s expertise
Materials condensed and simplified, leaving out details for unusual situations
Materials written to cover laws for entire nation, but cannot cover every jurisdiction
Laws constantly revised, and may require a different form or information
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Joint Ownership: How Property is Titled
Community Property
Joint Tenancy with Rights of Survivorship
Tenancy-in common
Tenancy-by-entireties
State Specific
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Joint Ownership:Issues to Consider
If you want to sell If one of the owners dies If joint owner is sued If a judgment is entered against the property If joint owner is divorced
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Estate Planning: Farmers and Family Business
Owners
Family businesses often experience unique circumstances and issues
Can provide for the gradual transfer of a farm enterprise – minimizing higher estate taxes
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May require a team effort including family, financial, farm management, tax, and legal expertise
Consult knowledgeable estate planning professionals
Estate Planning: Farmers and Family Business
Owners
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Steps to Getting Started
Know what you have and where it is located
Know what you want to do with your property
Know how to provide for distribution of your property
Put your plan on paper
My importantPapers- will- birth certificate- passport---
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Begin Planning
Plan for preparation of a will Assess your estate planning needs Review your present financial situation Prepare an inventory of your assets and your liabilities Organize information in folders or a three
ring binder
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Make a commitment now to locate and organize your important
records and information, and to prepare a will.
Please complete seminar written evaluation before leaving. Thank You
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Legally Secure Your Financial Future
Questions?
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Credits
This lesson was developed by the
Legally Secure Your Financial Future:
Organize, Communicate, Prepare team.
This is a program of the Cooperative Extension
Financial Security in Later Life national initiative.
Information is available at www.csrees.usda.gov/fsll