1. LIFE CHANGES& ESTATE
PLANNING
 MARRIAGE
 BIRTH OR ADOPTION OF CHILD(REN)
 DIVORCE
 DEATH OF CHILD OR SPOUSE
 OPENING NEW BUSINESS
 CHANGES IN YOUR FINANCIAL
PROPERTY

2. ASSUMPTIONS
 WILL LIVE FOREVER
 WILL NEVER BE DISABLED
 WILL NEVER REQUIRE LONG TERM CARE
 WILL NEVER NEED ANOTHER PERSON TO
MAKE MEDICAL DECISIONS FOR YOU
 ESTATE TAX LAWS WON’T APPLY TO YOU
 ESTATE PLANNING IS EASY, ANY ONE CAN
DO IT, AT ANY TIME
 NO NEED TO THINK ABOUT PLANNING
TODAY AS THERE WILL ALWAYS BE
TOMORROW.

3. KEY ASSUMPTIONS
 WILL LIVE FOREVER
 WILL NEVER BE DISABLED
 WILL NEVER REQUIRE LONG TERM
CARE
 WILL NEVER NEED ANOTHER
PERSON TO MAKE MEDICAL
DECISIONS FOR YOU

4. KEY ASSUMPTIONS
 ESTATE TAX LAWS WON’T APPLY TO
YOU
 ESTATE PLANNING IS EASY, ANY ONE
CAN DO IT, AT ANY TIME
 NO NEED TO THINK ABOUT PLANNING
TODAY AS THERE WILL ALWAYS BE
TOMORROW.

5. EXCUSES
 ONLY THE WEALTHY HAVE ESTATES
 MY SPOUSE WILL INHERIT ALL MY
PROPERY TAX FREE
 I DON’T NEED TO DO ANY PLANNING
 ESTATE IS DEFINED BY BLACK’S LAW
DICTIONARY AS AN INTEREST IN LAND
OR OTHER PROPERTY

6. UNLIMITED MARITAL
DEDUCTION
 Allows one spouse to pass an unlimited
amount of assets tax-deferred to the other
spouse in life or at death (unless one spouse
is not a U.S. citizen). Where non US spouse,
transfer is taxable unless made through a
Qualified Domestic Trust
(QDOT).

7. 10 QUESTIONS TO ASK
YOURSELF
 ARE YOU EXPECTING TO LIVE LONGER
 DO YOU HAVE CHILDREN, ARE THEY
FROM MORE THAN ONE
RELATIONSHIP
 HAVE YOU BEEN MARRIED MORE
THAN 1X
 WHAT ARE YOUR HOPES AND DREAMS
 WHAT HAVE YOU DONE TO ASSUE
ACHIEVING YOUR HOPES & DREAMS?

8. 10 QUESTIONS TO ASK
YOURSELF
 ARE YOU PREPARED FOR A CATASTROPHIC
EVENT?
 ARE YOUR ASSETS PROTECTED IN THE
EVENT OF LONG TERM CARE?
 DO YOU WANT YOUR ESTATE TO INCUR THE
COSTS, DELAYS, EXPENSE AND PUBLIC
NATURE OF A PROBATE PROCESS?
 WHAT HAVE YOU DONE TO MINIMIZE STATE
OR FEDERAL ESTATE TAXES?
 IF YOU HAVE DONE NOTHING HOW WILL
YOU PROTECT YOUR FAMILY AND ASSETS?

9. ESTATE PLANNING
 PRIMARY FUNCTION OF AN ESTATE PLAN
– PEACE OF MIND
– MAINTAIN CONTROL
– PROTECT ASSETS FOR YOURSELF & LOVED ONES
 ESTATE TAXES
 CREDITORS
 SPECIAL NEEDS
– AVOID PROBATE

10. ESTATE PLAN IS LIKE A PUZZLE
 LEGAL DOCUMENTS
 LONG TERM CARE INSURANCE
 LIFE INSURANCE
 DISABILITY INSURANCE
 RETIREMENT FUNDS
 REVERSE MORTGAGE
 PUBLIC BENEFITS

11. ESTATE PLANNING
 WHAT CONSTITUTES A GOOD ESTATE
PLAN
– WELL THOUGHT OUT
– COMPREHENSIVE
– ACHIEVES YOUR GOALS AND OBJECTIVES
DURING YOUR LIFETIME AND BEYOND

12. ESTATE PLANNING
 WHAT CONSTITUTES A BAD ESTATE
PLAN
– NOT THOUGHT OUT;
– NOT PREPARED FOR THE UNTHINKABLE;
– DOES NOT PRESERVE FAMILY HARMONY;
– DOES NOT PRESERVE ASSETS;
– NO PLAN.

13. ESTATE PLANNNING
CONSEQUENCES OF POOR OR NO PLANNING
 MAY NEED A GUARDIANSHIP
 MEDICAL WISHES MAY NOT BE CARRIED
OUT
 STATE LAW VIA A PUBLIC PROBATE PROCESS
DECIDES WHO RECIEVES YOUR ASSETS AND
IN WHAT PROPORTIONS;
 COURT DECIDES WHO RAISES YOUR MINOR
CHILDREN;
 HEIRS MAY UNNECESSARILY INCUR ESTATE
TAXES.

14. SOME EXAMPLES OF LEGAL
DOCUMENTS
 WILL
 TRUST
 DURABLE POWER OF ATTORNEY
 LIVING WILL & HEALTH CARE PROXY
 DECLARATION OF HOMESTEAD
 BUSINESS SUCCESSION PLAN
 PRENUPTIAL AGREEMENT
 CARE TAKER AGREEMENT

15. WILL
 A document that controls the flow of your
personal property such as jewelry, family
heirlooms, and assets held in your name
only. It does not control what passes by
beneficiary designation (for example, life
insurance, IRAs, retirement plans, Transfer
on Death agreements), by contract (for
example, accounts held by joint tenancy
with rights of survivorship), or by trust.

16. PERSONS APPOINTED
 Executor
The person who administers your final estate. That
person should be sensitive to the needs of your
beneficiaries, competent to handle financial and
legal matters, and available and willing to take on
responsibilities.
 Guardian
The persons who will take care of your
dependents. They should know your children
already (if possible), have similar philosophic
views to your own, and be financially able to take
on the responsibility of caring for your children.

17. WILL - REQUIREMENTS
 18 Years of Age or Older
 Sound Mind
 No Undue Influence
 Typed
 Declaration
 Sign and date
 2 Impartial Witnesses.

18. GROUNDS FOR WILL
CONTEST
 LACK OF TESTAMENTARY CAPACITY.
 UNDUE INFLUENCE
 FRAUD
 IMPROPER EXECUTION

19. TRUSTS
 A separate entity that holds property for the
benefit of either the grantor (creator) of the
trust or his or her heirs. A trustee manages
the assets that are placed in the trust and
makes sure that the terms of the trust are
followed.

20. LIVING TRUST
 A trust that's established while you are
alive. You can declare yourself the trustee of
the trust until you are no longer able to act
on your own behalf. You can set standards
for determining capacity--for example, your
doctor and your spouse must agree that you
are unable to make significant decisions on
your own. Assets must be re-titled in the
name of your living trust. At your death,
any assets in the living trust do not have to
go through probate.

21. TESTAMENTARY
 Just the opposite of a "living trust." This
trust isn't established until after you die.
Your will typically includes the language to
establish these trusts at your death. This
type of trust must be probated.

22. SHOULD EVERYONE HAVE A
LIVING TRUST?
 Absolutely NOT!
 A living Trust is appropriate for persons
who have concerns about
– the Estate Tax,
– Providing for offspring from a previous
relationship, and
– Probate Avoidance.

23. IRREVOCABLE LIFE INSURANCE
TRUST
 Removes the value of your life insurance
from your taxable estate. You irrevocably
assign your policies to the trust. This means
you can't change your beneficiaries at a later
date. You choose a trustee to make sure the
policy premiums are paid. If you transfer
life insurance policies to an irrevocable
trust, you must live three years past the date
of transfer or the value of the policies will
be pulled back into your estate.

24. MEDICAID QUALIFYING
TRUST
 A type of trust for a person who may require long
term care and seeks to have asset protected in
order for Medicaid to pay for such care.
 Trust must be irrevocable.
 Should be income only
 “Trigger Trust” no longer valid.

25. ALTERNATIVES
 Buy Long Term Care Insurance;
 Convert Countable Assets into Non Countable
Assets
 Take advantage, if possible, of transfers that can be
made without satisfying a look back
– Resource Allowance for Community Spouse
– Son/daughter care taker rule
 Create a Special Needs Trust

26. MEDICAID RULES
 Countable Assets
– Cash over $2,000 or $3,000
– Securities
– Retirement Accounts
– Time deposits – CD’s
– Investment property & Vacation Homes
– Whole Life Insurance
– 2nd Motor Vehicle
– Every other asset not listed as non countable

27. MEDICAID RULES
 Non Countable Assets a/k/a Exempt
– House used a primary residence;
– Cash under $2,000 or $3,000;
– One Car;
– Personal Jewelry;
– Household effects;
– Pre paid Funeral Plan;
– Burial Account no more than $2,500
– Cash paid for legal fees to accomplish Medicaid
planning;

28. MEDICAID RULES
 Look back (pre 2004)
– Transfers individuals must satisfy 3 year look back;
– Transfers into trust must satisfy 5 year look back;
– Trust must be irrevocable. If it is an income only trust
the income must continue when the beneficiary requires
long term care;
– Where look back not satisfied for plans created prior to
2004, “half a loaf” available;
– Half a Loaf would allow for Medicaid to calculate a
penalty period during which the applicant would be
self-pay.

29. REVISING AN ESTATE PLAN
 MARRIAGE
 CHILD BIRTH/ADOPTION
 DIVORCE
 DEATH OF BENEFICIARY
 CHANGE IN PROPERTY
 CHANGE IN CIRCUMSTANCES