life, estate & inheritance planning – god’s way. what is “estate planning”? a process...
TRANSCRIPT
What Is “Estate Planning”?
A Process that Allows You to:
Control Your PropertyWhile You’re Alive and Well;
Plan for You and Your Loved OnesIf You Become Mentally Disabled
Give What You Have• To Whom You Want• When You Want• The Way That You Want
All at the Lowest Possible /\ Costto You and Those You Love
Overall
What Is “Estate Planning”?
What Is Estate Planning? (cont’d)
Incorporates a balance of financial, social, emotional and spiritual values and aspirations.
Establishes a meaningful legacy during your lifetime and beyond.
The “Estate Planning Pyramid”
Me
My Family
My Wealth
ProtectWealth
Save Taxes
• Estate Plans that “Work”
• Focuses on Client Goals
• Solutions Make Planning Easier• Exposes Traditional
Planning
as “Upside Down”
Insurance
Policies
What Is an “Estate?”
Cash
Stocks
JewelryIRA’
s
Investments
Your Home
Income Properties
Automobiles
Antiques
Bonds&
Why Should You Plan Your Estate?
Every Family Has Planning Goals
Most common motivationsfor doing estate planning
The single greatest benefit
The Christian’s Estate Plan
1. Recognizes God as owner ofALL property;
2. Distributes that property ondeath to those who will continue to use it to promotethe Christian lifestyle
3. Insuring that your minor children are raised and encouraged in their Christian faith.
4. Your final act of stewardship
The Christian’s Estate Plan(cont’d)
Setting the Priorities of YourEstate Plan
1. What is God’s plan ofStewardship for my Estate?
2. People are more important than
dollars
3. Minimize the shrinkage and delay of transferring
property
What is God’s Plan of Stewardship for My Estate?
1. Stewardship - 10% or 100%
2. Lifestyle Giving
Time
Talents
Treasures
People Are More Important Than Dollars
1. Guardians for Minor Children
2. Personal Representative
3. Mental disability determination
4. Disability “Helpers”
5. Trustees
Mental Disability –“Living Probate”
Conservatorship – Control over the
Person’s Money
Guardianship – Control over the Person
Living Probate =Total Loss of
Control
• When you are disabled
• Who controls your affairs
• What the Agent can do
Someone Else Determines:
Power of Attorney
Gifting Programs
Guardianship
Conservatorship
Revocable Living Trust
Common Estate Planning Tools During
Your Lifetime
Minimize the Shrinkage and Delay of Transferring Property
1. Transfer Taxes
2. Probate / Trust Settlement Costs
3. Privacy issues
4. Control of the Process
5. Asset Protection
“Everything” Tax
(on All Assets) Graduated Tax Rates from 37% to 55%
Due 9 months from date of death
3 Major Exceptions
2001 Taxpayer Relief Act
Applicable Exclusion AmountYear Amount
2000 & 2001 $675,0002002 & 2003 $1,000,000
2004 $1,500,000
2005 $1,500,000
2006 $2,000,000
2007 $2,000,000
2008 $2,000,000
2009 $3,500,000
Death Probate
Definition: The legal process of paying a deceased person’s debts and retitling all of that person’s individually owned assets to the names of the heirs listed in a will.
Problems With Probate
• ExpensiveAverages 5to7 % of the value of the Gross Estate
• Time Consuming• Record-Keeping• Court Reports
• Proceedings are all Public
• No Control
Common Estate Planning ToolsAfter Your Death
Intestacy
Joint Tenancy
Will
Beneficiary Designations
Revocable Living Trust
Asset Protection
1. Divorce
2. Predator / Remarriage
3. Creditors / Lawsuits
4. Catastrophic Illness
5. Leaving the Legacy
Advanced Planning Tools
Life Insurance TrustMinor’s Trust Family Limited
PartnershipCharitable TrustOther Irrevocable TrustsGifting Programs
Title to Property(Who Owns Your Stuff?)
• Tax Savings• Personal Goals
• Personal Protections
TITLE MEANS EVERYTHING !
1. By Yourself
2. With Someone Else
Tenants in Common
Joint Tenancy With Rights of Survivorship
3. By Contract
Three Ways to Own Property
When Should You Plan Your Estate?
TodayMental
IncapacityCatastrophic
Illness Death
Your Planning Opportunity
Revocable Living Trust
WillLiving Will
Powers of Attorney
Irrevocable Trust
James 4:14, 17
1 Timothy 5:8
Documents that are properlycounseled, designed and draftedto express God’s plan ofstewardship for your estate
Assets that are properly titled
Regularly updated
Educated family
Controlled settlement costs
The Perfect Estate Plan
The 3 Laws of the Harvest
3. You reap MORE than you sow
2. You reap LATER than you sow
1. You reap WHAT you sow