Estate Planning & Wealth Preservation Planning using REVOCABLE LIVING TRUSTS

Estate Planning & Wealth Preservation Planning using REVOCABLE LIVING TRUSTS

Speaker Speaker Kevin L. Day, Esq.

Solana Beach, California

This material is Copyrighted and may be reproduced only with the owners written consent

This presentation does not constitute the rendering of legal advice or services.

The information being presented is intended for informational use only and is not a

substitute for legal advice.

State, national and international laws vary, as do individual circumstances;so always consult a qualified attorney on all legal matters.

This presentation does not constitute the rendering of legal advice or services.

The information being presented is intended for informational use only and is not a

substitute for legal advice.

State, national and international laws vary, as do individual circumstances;so always consult a qualified attorney on all legal matters.

Legal Notice and DisclaimerLegal Notice and Disclaimer

This material is Copyrighted and may be reproduced only with the owners written consent

Kevin L. Day, Esq. is one of the leading estate planning and international asset protection planning attorneys in the United States and is President of the law firm of Day & Associates Incorporated in Solana Beach, California. Mr. Day’s Bachelor Degree is in Chinese Studies, and he holds both a Masters of Business Administration in International Management and Doctor of Jurisprudence degree.

Domestic Revocable Trusts;

• Probate Avoidance [why you want this]• Cost 5-7% of your estate

• 2 years time on average for a smaller estate

• Control – You decide how and under what conditions your heirs inherit

• Privacy [No Public Record Filing Required]

• Disability Planning– You decide who can make your healthcare decisions

– Do not have a Court Appointed conservator running your estate

• Tax Saving - with the proper provision keep your gift tax exemptions. [This could mean millions of dollars in savings]

This Session

What You Are Going To Be Seeing More Of

What is a TrustWhat is a TrustIn general terms all Trusts behave the same…In general terms all Trusts behave the same…

TrusteeTrustee

Legal OwnerLegal Owner

Beneficial Owner

Beneficial Owner

Trust DeedTrust Deed

BeneficiaryBeneficiary

AssetsAssets

Settlors

What Is A Trust? What Is A Trust?

GrantorTrustee

Beneficiary

GrantorTrustee

Beneficiary

Grantor Trustee

Beneficiary

TrustTrust

Revocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. IrrevocableRevocable vs. Irrevocable

What Is A Trust?What Is A Trust?

Settlor Trustee

TrustTrust

Beneficiary

Understanding Living Trusts

•How to Avoid Probate [time and costs]

•How to Preserve Estate Tax Exemptions

•How to Control Distributions and Conditions of Inheritance

•How to Maintain Privacy of Your Affairs

Revocable TrustRevocable Trust

SETTING UP YOUR LIVING TRUST

Make DecisionsLiving Trust Team

Inheriting Instructions*

Medical Care IssuesAttorney Prepares Documents

Change Titles

You Keep Complete Control

FOR EXAMPLE:

From “John and Mary Smith, Husband

And Wife”

To “John and Mary Smith, Trustees

Under The Smith Family Trust Dated January 1, 2009”

PROBATE FEES-California Example-Every state is different

$ 15,000

100,000

200,000

500,000

1,000,000

2,000,000

5,000,000

$ 1,200

8,000

14,000

26,000

46,000

66,000

126,000

……………………….

……………………….

……………………….

……………………….

……………………….

……………………….

……………………….CALIFORNIA PROBATE FEES (§10800 et sec)These fees can be charged by the attorney…..and the Court.

How a Funded Revocable Living Trust Works

Husband’s Separate Property

Wife’s Separate Property

Co-Owned Propertyof Husband & Wife

At 1st DeathNo Probate

Surviving Spouse’sTrust: $1,000,000 in 2014

Estate Tax Exclusion Amount

Decedent’s BypassTrust: $5,000,000 in 2011

Estate Tax Exclusion AmountAt 2nd DeathNo Probate

Outright to Children

Revocable Living Trustof Husband & Wife

SUMMARY COMPARISON

Cost

Time

Privacy

Contesting

Incapacity

Minors

Control

LIVING TRUST

$,2000 - $5,000

4 - 8 Weeks

Maximum

Difficult

No Probate

No Guardianship

Maximum

PROBATE

≈7% of the Estate

1 – 2+ Years

None

Easy

“Living Probate”

Guardianship

None

Uncle Sam Wants His Inheritance

Paid Within 9 Months

Revocable Living Trust Protection from Probate

No Conservatorship Needed

You Maintain 100% Control

Gift Tax Exemption Preserved

Maintain Privacy (No public action)

Inheritance Conditions

(gradual steps, education, etc)

Lawsuit Protection – None

Documents Included In Your Complete Living Trust Estate Plan

1. Administrative Instructions

2. Document Signing Instructions

3. Living Trust Agreement

4. Pour-Over Wills

5. Community Property Agreement (if applicable)

6. Advanced Medical Directive Durable Power-of-Attorney for Health Care including

Directive to Physicians Regarding Use of Artificial Life

Support (“Living Will”)

7. Durable & Special Power-of-Attorney for Property

8. Limited & Miscellaneous Power-of-Attorney

9. Successor Trustees Instructions

10. Funding Your Trust Instructions

11. Final Instruction Checklist

REVOCABLE TRUSTS (“Living Trusts”) Who Can Hold Which Position?

REVOCABLE TRUSTS (“Living Trusts”) Who Can Hold Which Position?

Your choice

successor

Your choice

successor

Grantor Trustee

Beneficiary

TrustTrustYouYou YouYou

YouYou

Already Have A Living Trust?

Have your estate planned reviewed.• Laws Change• Assets Change• Tax Changes• Family Changes

Do It Your Self Estate Planning?

Completing a questionnaire does not make an estate plan.

You are making permanent decisions about your assets.

Moving your assets and funding your plan has consequences.

Your Next Step I Need a TrustDon’t wait another day. Call 1-800-648-0966 and receive $500 off the cost of a Complete Trust Package.

Call 1-800-648-0966 and the first 5 people will received a FREE Trust review. A $125 Value.

I Already Have A Trust

1-800-648-0966

1-800-648-0966

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Estate Planning & International Asset Protection Law Estate Planning & International Asset Protection Law