the top ten estate planning mistakes - fmb

© 2018 Kavesh, Minor & Otis, Inc.1

The Top Ten Estate Planning MistakesPresented by:

The Law Firm of Kavesh, Minor & Otis, Inc.

© 2018 Kavesh, Minor & Otis, Inc.

The Law Firm of Kavesh, Minor & Otis

Specializes in Estate Planning and Administration

37th Year in Business

One of the Largest Estate Planning Firms in California

Three State Bar Certified Specialists on Staff

Two Attorneys with Advanced Degrees in Tax Law

Handled over 4,000 Estate Administrations

Recognized as Authorities by Fellow Professionals and Leading Publications

Offices Located Nearby


Our Ground Rules

© 2018 Kavesh, Minor & Otis, Inc.4

The Top Ten Estate Planning Mistakes


Death Probate

“Living Probate” too!

Unwanted Court interference, delays, expenses and publicity

Wills, joint tenancy (probate avoidance alternatives) don’t necessarily avoid Court!

The preferred estate planning vehicle for most people: The Living Trust

#10. Letting Your Family Go To ____________!Probate Court


What is a Living Trust?

A legal document, similar to a will


After Signing the Trust, A Second Step Occurs

You = Trustors (Creators) You = Trustee

Your Living Trust

You = Beneficiary


During Your Lifetime, It’s Business as Usual

…YOU ARE IN CONTROL

And Your Living Trust is Amendable and Revocable!

It’s Merely a “Standby” Vehicle(That Avoids Stopping at the Court “Filling Station”)

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Will Your Living Trust Actually AvoidConservatorship & Probate?

Did you get all of your assets into the Trust?

What about later acquired?

Did you refinance any real estate?

Why typical Internet, do-it-yourself and bargain Trust plans DO wind up in Court!


You don’t think this will happen to you

Are you missing the proper HIPAA Authorization?

Do you have the latest Health Care Document?

Do you have a Health Document Emergency Card?

Do you have the “New Age” Power of Attorney?

#9. Failing to Address What Will HappenWhen You’re ________! Disabled


If you need Long Term Care, what will it cost?

Could you qualify for Medi-Cal benefits?

Do your Trust and Power of Attorney allow you to get Medi-Cal?

#9. Failing to Address What Will HappenWhen You’re ________! Disabled


Can they be trusted to handle a big pile of cash?

Trust your Trust instead! (Have it continue)

#8. Not Protecting Your Beneficiariesfrom __________! Themselves


Particularly, if your beneficiaries are:Too youngElderly, ill, disabled or have drug or alcohol problemsNot good at handling moneyReceiving needs-based government benefitsShould you appoint a Professional Trustee or Co-Trustee?Does the continuing Trust for each of these beneficiaries have

the flexibility to adapt after you’re gone?

#8. Not Protecting Your Beneficiariesfrom __________! Themselves


“But, Phil, I only have Grade A Beneficiaries!”

#7. Not Protecting Your Beneficiariesfrom ___________! Third Parties


Your beneficiary may be capable of handling money, but what about:

A beneficiary’s spouse taking your inheritance in a divorce?Bad luck, creditors and bankruptcy?Lawsuits- Valid or bogus?The government forcing your inheritance to be spent or paid over?Even if none of these happen, a possible second Estate Tax

#7. Not Protecting Your Beneficiariesfrom ___________! Third Parties


Even When the Beneficiary is Capable of

Handling on His/Her Own!

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Beneficiary can manage, control, and have access to it

Offers greater asset protection (and minimizes income taxes)

There’s a Better Way:The “Personal Asset TrustSM”


Living Trust

Spouse/Divorce Lawsuits Second Estate Tax

Poor Financial Decisions Spouse/Divorce

Creditor/Bankruptcy Losing Gov. Benefits or

Paying Back

PAT PAT PAT


So Unique, We License It to Other Attorneys!

This Personal Asset TrustSM is Recommended (Standard Equipment) in Every New Living Trust

We Build!

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These May Be Your Potentially Largest Assets, Yet Left Unprotected by Your Living Trust!

#6. Thinking Your Living Trust Covers Your_____________________! IRAs & Retirement Plans


Most Estate Plans Don’t Address the Complex IRS Distribution and Taxation Rules

Potential “stretchout” for non-spouse beneficiaries50-year-old child inherits $200,000 IRA,

growing at 6%In 30 years, he/she may take out over

$700,000 (required minimum distributions)Still have almost $300,000 in accountMay be the difference between your loved

one retiring or not!


Think of the IRA Inheritance Trust®

as a “Living Trust for Your IRASM”

Both stretchout and protection

You should consider it if you (and your spouse) have IRAs and other Retirement Plans totaling over $150,000!

Even if you don’t get an IRA Trust, be sure you properly designated your beneficiaries!


#5. Overlooking Other _______ Tax Issues !Income

Income Tax is the new Estate Tax!

Unfortunately, many plans don’t address

May reduce Income Tax for the surviving spouseObtain full “step-up” in basis without getting a court orderFully utilize special capital gains exclusion on sale of the home


May reduce Income Tax for your other beneficiariesGet full “step-up” in basis at surviving spouse’s deathGet another full “step-up” at first beneficiary’s death

We fix old Trusts!

#5. Overlooking Other _______ Tax Issues !Income


#4. Believing the Person(s) Who You Name to Act asTrustee Will Know __________.What to Do

Most people named to act as Trustee have never done it before

The Living Trust does have a negative - no Court supervision

The Trustee can have personal liability, out of own pocket, if he/she messes up


Do You Have (or Will Get) an “Owner’s Manual”?

Immediately Accessible Copies of your Estate Plan Documents

Trust Flow Chart Checklist of 18 Immediate

Actions Personal Directions Letter Location List Contact List Seminar DVD


Do You Have (or Will Get) a “Successor Trustee Manual”?

For use after the first Immediate Actions are handled

Plain-English Checklists for your Successor Trustee (including your spouse) to avoid the “Pitfalls for the Unwary”

Quick-Start DVD


#3. Not Keeping Up with ________!Changes

In your wishes

In your relationships with Trustees and beneficiaries

In the needs and circumstances of your beneficiaries

In the Tax and Trust Laws

In estate planning “techniques”Should you name a Professional Trustee or Co-Trustee?


#2. Not protecting your Trust vehicle with a ___________!Service Plan

Our Unique FREE Service Plan

Free phone calls to answer your questions Free periodic newsletter to keep you informed Special Notices and seminars as

law and planning changes Discount on Future Fees Free Checkup Meeting

every 3 years Free Trustee training and post-death meeting


#1. “I understand how important it is to properlytake care of my estate plan, but I’m too ______!

“Procrastination” is the silent killer of estates!


Are You Making (or Want to Avoid) These Mistakes?

Where Do You Go From Here?


We offer a FREE attorney consultationand fixed fee quote, but…

WOULD YOU LIKE A DISCOUNT?

Fill out and turn in the Response Form

Come in to see us within the next 3 weeks

Special discount thanks to F&M Bank, not available to the general public


PROCRASTINATION

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