life, estate & inheritance planning – if you don’t have a plan for your estate, the state...
TRANSCRIPT
![Page 1: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/1.jpg)
Life, Estate & Inheritance Planning –
If you don’t have a plan
for your estate,
The State Does!
Presented by
Arthur J. Pauly, Jr. J.D. Esq.
916-207-7526
![Page 2: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/2.jpg)
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
![Page 3: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/3.jpg)
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”?
![Page 4: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/4.jpg)
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.
![Page 5: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/5.jpg)
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”
![Page 6: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/6.jpg)
Insurance
Policies
What Is an “Estate?”
Cash
Stocks
JewelryIRA’
s
Investments
Your Home
Income Properties
Automobiles
Antiques
Bonds&
![Page 7: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/7.jpg)
What Is an “Estate?”
![Page 8: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/8.jpg)
Why Should You Plan Your Estate?
Every Family Has Planning Goals
Most common motivationsfor doing estate planning
The single greatest benefit
![Page 9: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/9.jpg)
Setting the Priorities of YourEstate Plan
1. What is your plan forFor your Estate?
2. People are more important than
dollars
3. Minimize the shrinkage and delay of transferring
property
![Page 10: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/10.jpg)
People Are More Important Than Dollars
1. Guardians for Minor Children
2. Personal Representative
3. Mental disability determination
4. Disability “Helpers”
5. Trustees
![Page 11: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/11.jpg)
Mental Disability –“Living Probate”
Conservatorship – Control over the
Person’s Money
Guardianship – Control over the Person
![Page 12: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/12.jpg)
Living Probate =Total Loss of
Control
• When you are disabled
• Who controls your affairs
• What the Agent can do
Someone Else Determines:
![Page 13: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/13.jpg)
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
![Page 14: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/14.jpg)
1. By Yourself
With Someone Else
Tenants in Common
Joint Tenancy With Rights of Survivorship
3. By Contract
Three Ways to Own Property
![Page 15: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/15.jpg)
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.
![Page 16: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/16.jpg)
Problems With Probate
• ExpensiveAverages 5to7 % of the value of the Gross Estate
• Time Consuming• Record-Keeping• Court Reports•Average 16 months
• Proceedings are all Public
• No Control
![Page 17: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/17.jpg)
Last Will of Jackie K. Onassis
![Page 18: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/18.jpg)
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
![Page 19: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/19.jpg)
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
![Page 20: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/20.jpg)
“Everything” Tax
(on All Assets) Graduated Tax Rates from 37% to 55%
Due 9 months from date of death
3 Major Exceptions
![Page 21: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/21.jpg)
2001 Taxpayer Relief Act
Applicable Exclusion AmountYear Amount
2008 $2,000,000
2009 $3,500,000
2010 Repealed
2011 to 2013 $5,000,000
2014 up to Congress
![Page 22: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/22.jpg)
Power of Attorney
Gifting Programs
Guardianship
Conservatorship
Revocable Living Trust
Common Estate Planning Tools During
Your Lifetime
![Page 23: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/23.jpg)
Common Estate Planning ToolsAfter Your Death
Intestacy
Joint Tenancy
Will
Beneficiary Designations
Revocable Living Trust
![Page 24: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/24.jpg)
Asset Protection
1. Divorce
2. Predator / Remarriage
3. Creditors / Lawsuits
4. Catastrophic Illness
5. Leaving the Legacy
![Page 25: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/25.jpg)
Advanced Planning Tools
Life Insurance TrustMinor’s Trust Family Limited
PartnershipCharitable TrustOther Irrevocable TrustsGifting Programs
![Page 26: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/26.jpg)
When Should You Plan Your Estate?
TodayMental
IncapacityCatastrophic
Illness Death
Your Planning Opportunity
Revocable Living Trust
WillLiving Will
Powers of Attorney
Irrevocable Trust
![Page 27: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/27.jpg)
Documents that are properlycounseled, designed and draftedto express your plan foryour estate
Assets that are properly titled
Regularly updated
Educated family
Controlled settlement costs
The Perfect Estate Plan
![Page 28: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/28.jpg)
Cost Comparison
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$200 K
$400 K
$600 K
$1.2 M
no planwill onlytrust
Estate size
Settlement costs
![Page 29: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/29.jpg)
Associated Documents
deeds
Stocksbusiness’s
$ accounts&
retirement
WH
WH
Proof ofTrust
FundingDocuments
Pour-Over Wills Durable Powers ofAtty. for Prop.
WH
Durable Powers ofAtty. for Health
Certificate of Trust
Family RevocableLiving Trust
General Transfer
Community PropertyAgreement
![Page 30: Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq. 916-207-7526](https://reader036.vdocuments.net/reader036/viewer/2022081603/56649f1d5503460f94c33820/html5/thumbnails/30.jpg)
The End Result - Peace of Mind