the estate planning basics
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The Estate Planning Basics. What You Should Know Before You See An Attorney. Leah R. Gilbert Pluto Legal, PLLC, Attorney at Law. About Us. Memberships and Organizations Member of Wealth Counsel Member of the National Academy of Elder Law Attorneys - PowerPoint PPT PresentationTRANSCRIPT
The Estate Planning Basics
Leah R. Gilbert Pluto Legal, PLLC, Attorney at Law
What You Should KnowBefore You See An Attorney
About Us
Memberships and Organizations Member of Wealth Counsel Member of the National Academy of Elder
Law Attorneys Member of the Hennepin County Medical
Assistance Committee Member MN State Bar Association
PLUTO LEGAL, PLLCWho We Are:
Main Office in Tyler, MN Two attorneys
Lisa K. Pluto: Managing attorney and Owner Dodge Center, MN
Leah R. Gilbert: Associate Attorney Chaska, MN
Seven Support Staff including a Licensed Social Worker, paralegal,
Medicaid / Elderly Waiver expertise, funding and probate support
Proper Estate Planning
Caring for loved ones as if you were still there
• With your resources
• With your love
• With your wisdom
The Estate Planning Process
Education Design
Drafting Documents
Implementation
Common Planning Techniques
Owning property jointly
Designating a
beneficiary
Signing a will
Wills Can Fall Short of Estate Planning Goals
Won’t provide for your disability
Won’t necessarily give what you have: to whom you want
the way you want
when you want
Certainly won’t avoid probate
Traditional Estate Planning
Gross Estate
Your Will
Non-probate transfers
Jointly owned propertyLife InsuranceIRA’s401(k)’sAnnuities
Planned Distributions
Property titled in your name
ProbateProcess
Last Will of Jackie K. Onassis
The Living Trust
It plans for your disability
It plans for your loved ones
Contains your loving instructions
Its private and confidential
Reflects your hopes, fears, dreams and values
Its good in every state
How to Distribute to Your Heirs
• No protection
• Creditor protection• Predator protection• Self protection• Estate tax protection
• Outright
• In Trust
Basic Estate and Gift Tax Rules
It’s a tax on everything Estate and gift taxes begin at 40% $14,000 annual exclusion* Unlimited marital deduction $5,250,000 unified credit (Federal) MN limit of $1,000,000** Unlimited charitable deduction Federal = Portable; MN State = Use it or
Lose it
* Indexed for inflation * * Small Family Businesses and Family Farms may get up to $4MM
Estate Plans
Revocable Living Trust Trust, Pour Over-Will, HCD, POA, funding
assistance Will
Will, HCD, POA Transfer on Death Deed
TODD, HCD, POA
The Most Overlooked Reasons to Create an Estate Plan:
Mental Disability Physical Disability
Disability PlanningGuardianship / Conservatorship
Legal Proceeding to Establish Authority for One Individual to Act on Behalf of Another
Powers of Attorney
Two Types: Statutory Short Form Common Law P.O.A.
Powers of Attorney
Statutory Short Form Power of Attorney• It is a FORM! • No Instructions• Effective Immediately• Blank Check• No Reporting Requirements• No requirement for Others to Accept!• Statutory Limitations for Medical Assistance Plans
Powers of Attorney
Common Law Power of Attorney• Drafted to Individual Needs• Gives Instructions• Choice on When POA Takes Effect• Has Reporting Requirements
Health Care Directives
Combines…..
Health Care Power of Attorney and Living WillYou choose the Health Care AgentsYou give them instructions and
directions regarding your health care wishes
Health Care DirectivesLegal Requirements: be in writing be dated state the principal's name (The principal is the
person filling out the health care directive) be executed by a principal with capacity to do so
with the signature of the principal or with the signature of another person authorized by the principal to sign on behalf of the principal
contain verification of the principal's signature or the signature of the person authorized by the principal to sign on behalf of the principal, either by a notary public or by witnesses as provided under this chapter; and
include a health care instruction, a health care power of attorney, or both.
Health Care Directives
Allows One to Make Decisions RegardingOrgan DonationTerminal Care (Living Will)Burial ServicesDNR, DNI, etc.
ANDGuardian DesignationHIPAA Designee
The Next Step
Seek Competent Legal Counsel
Thank You!
Questions Please Fill Out Course Evaluation Mark YES for a No Cost Consultation
If you do not want us to contact you please mark NO on your evaluation
THANK YOU!
Pluto Legal, PLLC
100 E. Highway 14
Tyler, MN 56178
Toll Free: 1-866-457-3131
Pluto Legal TeamJuell Buchholz, Cheryl Vos, Amy VanEck,
Attorney Lisa K. Pluto, Todd Berger, Attorney Leah R. Gilbert,
Beth Daniels, Traci Sherman