Anatomy of

An Estate Plan

QUARTERLY NEWSLETTER

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B R O U G H T T O Y O U B Y :

Paul C. Koenig Jr.,CFP®, ChFC®, CRPC®, RFC®

Financial Planner

Integrated Financial Partners 1300 Route 73, Suite 314Mount Laurel, NJ 08054Phone: (856) 291-0142Fax: (856) 581-6017Paul.Koenig@LFG.comthekoenigandleimberggroup.com

Lincoln Financial Advisors and its registered representatives do not give legal or tax advice. Paul Koenig is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. CRN-1176756-041715

Integrated Financial Partners, Inc. is not an affiliate of Lincoln Financial Advisors Corp.Brought to you by: Paul C. Koenig Jr., CFP®, ChFC®, CRPC®, RFC®

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What Is Estate Planning?

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Trust Trust

Trust Trust

Of all the parts of a complete financial plan, estate planning is the most neglected. It’s time to fix that.

Let me work with you and your lawyers to create an estate plan that can help you and your family gain a sense of security for the future.

Do you know anyone that may benefit from my services?

Feel free to pass along this newsletter to your friends, family, colleagues and business associates or contact me with their names.

Estate Planning, aside from the disposition of assets, encompasses a wide range of issues:

p tax reduction or eliminationp charitable inclinationsp establishment of your legacy p maintaining family harmonyp supporting future generationsp protection from creditorsp instructions for your own care in sicknessp family business continuationp guardianship for minor children

Some people are affected by all of these issues, and all people are affected by some. Estate planning is not just for “retired” people or the “wealthy”. We cannot predict how long we will live. And people with modest assets can afford to lose the least.

Let’s learn a little about the more popular parts of an estate plan.

What Is Estate Planning? Living WillWhat Is It? A description of the medical care you want if you cannot speak for yourself.

Why It’s Important. It assures your wishes are heard, and protects your family from having to make such difficult choices.

Key Elements:

Life-prolonging care: What types of care you want, and for how long.

Food and Water: Some permanently unconscious patients can live for a very long time if given intravenous food and water. Some people want this, some don’t.

Palliative Care: Pain-reducing medications, for those foregoing life-prolonging treatments.

Agent: The person who assumes the authority to act on your behalf. Choose someone trustworthy and dependable, who won’t back down to pressure from those who disagree with your wishes.

Grantor and Trustee: Unlike a revocable trust, the trustee of an irrevocable trust cannot be the grantor. Otherwise, the purpose of the trust will likely be defeated.

Irrevocability: Once the trust is established, no terms may be amended, nor may the trust be revoked.

A Few More Items

p Digital assets, such as account numbers and passwords.

Per Stirpes / Per Capita: These phrases are used to describe how property should be distributed when a beneficiary with children dies. Try to avoid this

language, as it has been challenged often in court. Instead, take time to update your will as beneficiaries are born, die, get married or divorced.

Executor/Personal Representative: The person you name to legally represent your estate, distribute property, and pay all debts and taxes. Setting aside feelings and choosing the most competent person, rather than the closest, is always prudent.

Guardians: The person or persons who have agreed to care for your children, dependents, and/or pets. Carefully consider their financial resources, location, and personal and religious values.

Beneficiaries: Those who will receive your property. Be as specific as possible, using addresses and birthdates, especially for unrelated persons.

WillWhat Is It? It is a statement of your final wishes.

Why It’s Important. Without one, the government will determine what happens to your assets, and who raises your children.

Key Elements:

Durable Power of Attorney and Health Care Proxy

What Is It? Arrangements for someone to make financial (DPA) and medical (HCP) decisions for you, if you become incapacitated.

Why It’s Important. Estranged family members, doctors or judges may make important, personal decisions for you, in absence of these documents.

Key Elements:

Irrevocable TrustWhat Is It? Although primarily a method for reducing taxes and protecting property, dozens of types of irrevocable trusts exist for different purposes.

Why It’s Important. Estate taxes, left unchecked, can cost a family millions of dollars, as can spendthrifts and creditors.

Key Elements:

Revocable TrustWhat Is It? A method for distributing property to your heirs, similar to a will.

Why It’s Important. Unlike a will, a revocable trust provides privacy, and assets within the trust avoid probate. Typically, transferring assets by trust is less contestable in court than transferring by will.

Key Elements:Grantor/Donor: The person who sets up the trust, and transfers property into it.

Trustee: The person who controls the trust and the assets within it. Typically, the trustee and grantor are the same person.

Successor Trustee: Upon the death or incapacitation of the trustee, the successor trustee takes over. Their job is to distribute trust assets to the beneficiaries, and to manage trust assets for minor beneficiaries.

Revocability: This type of trust can be changed at any time, or completely revoked, until the grantor’s death.

Pour-over Will: Used in conjunction with a trust, this document directs any assets not held in the trust to be placed in the trust upon death. While those assets will need to go through probate, they will be distributed according to the trust provisions.Trusts are often left “unfunded”. Account registrations,

property titles and beneficiary designations must be changed to make trusts effective.

Aside from the major documents, a good estate plan will keep on file and regularly update the following:

p Beneficiary forms, for life insurance policies and retirement accounts, like 401(k)’s.p An inventory list, lest any assets are

overlooked or forgotten. p Contacts, for any people you think

should be notified upon your death.