This document provides an overview of wills, trusts, and advanced directives. It defines key terms like gross estate, probate estate, and non-probate estate. It explains how assets outside of the will like life insurance and retirement accounts pass on. It also covers health care proxies, living wills, powers of attorney, and different types of trusts. The document emphasizes the importance of estate planning and working with an attorney to draft appropriate legal documents.

1. YOUR GUIDE TO WILLS,
TRUSTS &
ADVANCED
DIRECTIVES
PRESENTED BY:
DANIEL A. TIMINS, ESQ, CFP®

2. DISCLAIMER
 All information contained in these
pages is for informational purposes
only. It should not be considered legal
advise. Please consult an attorney
before taking any steps based on this
information.

3. “GROSS ESTATE”
EVERYTHING
YOU
OWN

4. GROSS ESTATE
NON- PROBATE ESTATE
What does not pass through your
will
vs.
PROBATE ESTATE
What goes through your will

5. NON-PROBATE ESTATE
• Life Insurance
• IRA, 401(k), pension plan, Keogh, 403(b)
• Contracts (e.g. pre-nuptial,
partnership)
• Joint Accounts and real estate, bank &
brokerage accounts
• TOD, ITF, Totten Trusts
• Trusts

6. PROBATE ESTATE - YOUR
WILL
Everything that is not in
your non-probate estate

7. NOTHING IN
YOUR NON-
PROBATE
ESTATE IS PART
OF YOUR WILL.

8. MAKE SURE YOU DO
YOUR ESTATE
PLANNING USING YOUR
ENTIRE GROSS ESTATE,
NOT JUST WHAT GOES
THROUGH YOUR WILL

9. YOU HAVE A
WILL
WHETHER
YOU HAVE
WRITTEN ONE
OR NOT

10. YORK STATE'S WILL FOR
YOU
1. Spouse Only - 100%
2. Spouse & Children - $50,000 to spouse
+
50%/50% spouse and children
3. Children - 100%
4. Parents - 100%
5. Siblings - 100% (Nieces and Nephews)
6. Grandparents - 100%
7. Aunts + Uncles - 100%
8. Cousins - 100%

11. THOSE DENIED IN THE
STATE'S WILL FOR YOU
 1. Those relatives not in line in the
 priority list
 2. Organizations and Institutions
 3. Specific Gifts to Specific People
 4. Life Partners
 5. Friends
 6. Business Partners
 7. Pets

12. PROBLEM
• The Surrogate’s Court handle’s people’s
“Probate Estate” (and more)
• It also requires your Executor to legally
cite your closest blood relatives.
• If you don’t know where (or who) they
are, this will delay the probate process.
• If you don’t know where or who they are,
put all the assets you can into non-
probate accounts.

13. GIFT TAXES: EXCLUSIONS
 SPOUSES: Can transfer unlimited amounts
during life (& at death)
 HEALTH & EDUCATION: Can pay any and
every “US Person’s” H&E Expenses
 (MUST be paid to institution)
 ANNUAL EXCLUSION: Can pay to any
and every US Person every year
2012: $13,000
2013: $14,000

14. HOW MUCH ARE ESTATE
TAXES?
 FEDERAL GOVERNMENT
Rate for $$$
Year Exclusion In
Excess
 2012 $5,000,000 35%
 Beyond ??? $1,000,000 55%?
 Charitable deduction--unending
 Marital deduction—unending provided
spouse is a U.S. citizen

15. HOW MUCH ARE ESTATE
TAXES?
• New York Estate Tax
• Exclusion Rate $$$$ above
• $1,000,000 ~10%-17%
• Charitable deduction--unending
• Marital deduction—unending
• There is NO New York Gift Tax

16. HEALTH CARE PROXY
• Designates a person to:
• make medical decisions for you if you are
unable to do so
• have access to medical records
• Allows gifts of “anatomical remains"
• Also designates a second person in case
the first person is unavailable.
• Be selective in who you choose.

17. LIVING WILL
 Can be within the Health Care Proxy
 States
what you would like to happen to you if
you cannot make your own health care decisions
and:
1. You are in a terminal condition; or
2. You are permanently unconscious; or
3. You are conscious but have irreversible brain
 damage and will never regain the ability to
 make decisions and express your wishes.
 Theseconditions are sometimes referred to as
"a vegetative state."

18. LIVING WILL
 Sample language:
 I feel especially strongly about the following forms of
treatment:
I do not want mechanical respiration.
 I do not want tube feeding.
 I do not want antibiotics.
 I do not want cardiac resuscitation.
 I do want maximum pain relief, even if such treatment
hastens my death.
 I direct that treatment be limited to measures to keep me
comfortable and to relieve pain, including any pain that
might occur by withholding or withdrawing treatment.

19. DURABLE GENERAL
POWER OF ATTORNEY
• Designate a person or persons to
manage your financial affairs.
• Designates also what areas of your
finances you are giving control over.
• Beware: This is a blank check. The person
you designate could take all of your
money. They could go to jail for it, but the
money may have disappeared before they
are caught.

20. TRUSTS
Definition:
A Trust is a legal entity which allows a
person(s) (or institution) to own assets
for the benefit of another. The assets
are always in the name of the trust. The
“Trustee” is the owner, the person who
benefits is the “Beneficiary.” The owner
is not free to use the assets except
according to the provisions of the
Trust. A Trust can be set up within a
Will or on its own.

21. PARTIES TO A
TRUST
GRANTOR
ASSETS
RULES
THE IRS
TRUSTEE BENEFICIARY

22. EXAMPLES OF TRUSTS
• Living Trust – Revocable - no tax benefit
• Credit Shelter Trust - avoids some estate
taxes (uses spousal estate tax
exemption)
• Trust for Minor Children
• Supplemental Needs Trust for a disabled
person (minors & adults)
• Medicaid Asset Protection Trust (for
adults with substantial assets)
• Q-Tip Trust
• Irrevocable Life Insurance Trust

23. WILLS V. TRUSTS - PROS
Wills Trusts
• Less Expensive to • No Court Involvement
Draft
• No Additional Action • Private Between Grantor,
or Expenses Trustee & Current
Beneficiary
• No other action • Continuity of Asset Usage
required until death Upon Incapacity
• Faster Distributions at
Death
• Can Receive Life Insurance
& Retirement Plan Benefits
• Creditor Protection for

24. WILLS V. TRUSTS - CONS
Wills Trusts
• Public Document Upon • Additional expense to
Death Create the Document
• Additional Paperwork • Requires Changing
Required at Death Accounts and
Beneficiary Forms to
Trust’s name
• Court Fees and Legal Fees
• Approval of Surrogate’s
Court Required
• Public “Inventory” with
Court showing ALL Estate
assets

25. DRAFTING LEGAL
DOCUMENTS
See a lawyer who focuses on
Estate Planning before drafting
documents

26. QUESTIONS?????
DANIEL A. TIMINS, Esq., CFP®
7 Penn Plaza 399 Knollwood Road
Suite 310 Suite 300
New York, NY 10001 White Plains, NY 10603
(212) 683-3560 (914) 819-0663
Email: dtimins@tllawoffices.com
Web Site: www.tllawoffices.com
Blog: nyestateblog.wordpress.com