Creative Wealth Preservation Techniques

Report
2013 VADA Family Convention
October 16th
Greenbrier
Estate Planning Seminar
By: John P. Dedon
1775 Wiehle Avenue, Suite 400
Reston, Virginia 20190
(703) 218-2131
[email protected]
2012 Law Highlights
• $5 million exemption indexed for inflation
• 40% estate tax rate
• Gift opportunities remain…for now
•
•
•
Discounting
Dynasty Trusts
GRATs and Intentionally Defective Trusts
1
Estate Tax :
Year
Exemption Amount
2013 Forward:
$5 Million gift and estate
exemption: 40% tax rate
Permanent?
President’s Proposal
Reversion to 2009: 45%
rate & $3.5 M exemption
beginning in 2018
2
Remaining Threats To Family
Assets
Potential Creditors
39.6% Income Tax
IRS
3-6% Probate & Legal Expenses
40%
3
TAKE CARE OF BASICS
Wills
 Revocable Living Trusts
 Advanced Medical Directives (Living
Wills)
 Powers of Attorney

4
Other Fundamental Planning Issues
• Children with creditor, financial, or marital
problems
• Children from a previous marriage and
second spouse
• Children with special needs (parents)
• Spouse who would need help managing and
investing funds – now or later
5
Probate
Cost
Time Delays
Publicity
Property In Multiple States
Hassle
Avoid Probate With Revocable Trust
6
Assets
Retirement
Liquid
Insurance
Closely Held
Business
Total
7

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