protect your assets through a living trust
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Learn why you need to protect your business and personal assets through a living trust.TRANSCRIPT
Estate Planning & Wealth Preservation Planning using REVOCABLE LIVING TRUSTS
Estate Planning & Wealth Preservation Planning using REVOCABLE LIVING TRUSTS
Speaker Speaker Kevin L. Day, Esq.
Solana Beach, California
This material is Copyrighted and may be reproduced only with the owners written consent
This presentation does not constitute the rendering of legal advice or services.
The information being presented is intended for informational use only and is not a
substitute for legal advice.
State, national and international laws vary, as do individual circumstances;so always consult a qualified attorney on all legal matters.
This presentation does not constitute the rendering of legal advice or services.
The information being presented is intended for informational use only and is not a
substitute for legal advice.
State, national and international laws vary, as do individual circumstances;so always consult a qualified attorney on all legal matters.
Legal Notice and DisclaimerLegal Notice and Disclaimer
This material is Copyrighted and may be reproduced only with the owners written consent
Kevin L. Day, Esq. is one of the leading estate planning and international asset protection planning attorneys in the United States and is President of the law firm of Day & Associates Incorporated in Solana Beach, California. Mr. Day’s Bachelor Degree is in Chinese Studies, and he holds both a Masters of Business Administration in International Management and Doctor of Jurisprudence degree.
Domestic Revocable Trusts;
• Probate Avoidance [why you want this]• Cost 5-7% of your estate
• 2 years time on average for a smaller estate
• Control – You decide how and under what conditions your heirs inherit
• Privacy [No Public Record Filing Required]
• Disability Planning– You decide who can make your healthcare decisions
– Do not have a Court Appointed conservator running your estate
• Tax Saving - with the proper provision keep your gift tax exemptions. [This could mean millions of dollars in savings]
This Session
What You Are Going To Be Seeing More Of
What is a TrustWhat is a TrustIn general terms all Trusts behave the same…In general terms all Trusts behave the same…
TrusteeTrustee
Legal OwnerLegal Owner
Beneficial Owner
Beneficial Owner
Trust DeedTrust Deed
BeneficiaryBeneficiary
AssetsAssets
Settlors
What Is A Trust? What Is A Trust?
GrantorTrustee
Beneficiary
GrantorTrustee
Beneficiary
Grantor Trustee
Beneficiary
TrustTrust
Revocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. Irrevocable
What Is A Trust?What Is A Trust?
Settlor Trustee
TrustTrust
Beneficiary
Understanding Living Trusts
•How to Avoid Probate [time and costs]
•How to Preserve Estate Tax Exemptions
•How to Control Distributions and Conditions of Inheritance
•How to Maintain Privacy of Your Affairs
Revocable TrustRevocable Trust
SETTING UP YOUR LIVING TRUST
Make DecisionsLiving Trust Team
Inheriting Instructions*
Medical Care IssuesAttorney Prepares Documents
Change Titles
You Keep Complete Control
FOR EXAMPLE:
From “John and Mary Smith, Husband
And Wife”
To “John and Mary Smith, Trustees
Under The Smith Family Trust Dated January 1, 2009”
PROBATE FEES-California Example-Every state is different
$ 15,000
100,000
200,000
500,000
1,000,000
2,000,000
5,000,000
$ 1,200
8,000
14,000
26,000
46,000
66,000
126,000
……………………….
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……………………….CALIFORNIA PROBATE FEES (§10800 et sec)These fees can be charged by the attorney…..and the Court.
How a Funded Revocable Living Trust Works
Husband’s Separate Property
Wife’s Separate Property
Co-Owned Propertyof Husband & Wife
At 1st DeathNo Probate
Surviving Spouse’sTrust: $1,000,000 in 2014
Estate Tax Exclusion Amount
Decedent’s BypassTrust: $5,000,000 in 2011
Estate Tax Exclusion AmountAt 2nd DeathNo Probate
Outright to Children
Revocable Living Trustof Husband & Wife
SUMMARY COMPARISON
Cost
Time
Privacy
Contesting
Incapacity
Minors
Control
LIVING TRUST
$,2000 - $5,000
4 - 8 Weeks
Maximum
Difficult
No Probate
No Guardianship
Maximum
PROBATE
≈7% of the Estate
1 – 2+ Years
None
Easy
“Living Probate”
Guardianship
None
Uncle Sam Wants His Inheritance
Paid Within 9 Months
Revocable Living Trust Protection from Probate
No Conservatorship Needed
You Maintain 100% Control
Gift Tax Exemption Preserved
Maintain Privacy (No public action)
Inheritance Conditions
(gradual steps, education, etc)
Lawsuit Protection – None
Documents Included In Your Complete Living Trust Estate Plan
1. Administrative Instructions
2. Document Signing Instructions
3. Living Trust Agreement
4. Pour-Over Wills
5. Community Property Agreement (if applicable)
6. Advanced Medical Directive Durable Power-of-Attorney for Health Care including
Directive to Physicians Regarding Use of Artificial Life
Support (“Living Will”)
7. Durable & Special Power-of-Attorney for Property
8. Limited & Miscellaneous Power-of-Attorney
9. Successor Trustees Instructions
10. Funding Your Trust Instructions
11. Final Instruction Checklist
REVOCABLE TRUSTS (“Living Trusts”) Who Can Hold Which Position?
REVOCABLE TRUSTS (“Living Trusts”) Who Can Hold Which Position?
Your choice
successor
Your choice
successor
Grantor Trustee
Beneficiary
TrustTrustYouYou YouYou
YouYou
Already Have A Living Trust?
Have your estate planned reviewed.• Laws Change• Assets Change• Tax Changes• Family Changes
Do It Your Self Estate Planning?
Completing a questionnaire does not make an estate plan.
You are making permanent decisions about your assets.
Moving your assets and funding your plan has consequences.
Your Next Step I Need a TrustDon’t wait another day. Call 1-800-648-0966 and receive $500 off the cost of a Complete Trust Package.
Call 1-800-648-0966 and the first 5 people will received a FREE Trust review. A $125 Value.
I Already Have A Trust
1-800-648-0966
1-800-648-0966
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Estate Planning & International Asset Protection Law Estate Planning & International Asset Protection Law