The Nuts and Bolts of Estate Planning

Report
Navigating the Financial and Legal
Issues of Parkinson‘s Disease
Presented at the
Parkinson’s Institute
July 14, 2010
Nancy Williamson, Esq.
Specializing in Estate Planning
1290 Parkmoor Avenue, 3rd Floor
San Jose, CA 95126
[email protected]
SanJoseWillsAndTrusts.com
Introduction
Objectives of an Estate Plan
Consequences of not having an Estate
Plan
The differences between a Will and a
Living Trust
Other Planning Considerations
What are the objectives
of a proper Estate Plan?
An Estate Plan expresses your hopes,
values and wishes for future generations.
An Estate Plan is your last communication
to your loved ones.
An Estate Plan helps you to think about
you and your families’ future, and plan for
future needs (e.g. long term care needs,
housing, etc.)
What are the objectives
of a proper Estate Plan? (cont’d)
Minimize expense, cost and delays, in
distributing your assets to WHOM you
want and in the MANNER that you want.
The Consequences of Not
Having an Estate Plan
If you do not have a Plan, the Government
will impose a distribution plan for you.
Unfortunately, most Americans fall into this
category, as only 30% of all Americans have
an Estate Plan
The Consequences of Not
Having an Estate Plan (cont’d)
In the Event of Incapacity – Court Control
At Death - Probate
What is probate?
Probate is costly
Probate Fees, costs, attorney’s fees
Probate is time consuming
Is a Will Sufficient?
Whether a Will is sufficient depends on a
variety of factors.
Celebrity Example Warren Burger
Mistake: Creating an Ineffective Will
Chief Justice Warren Burger died in 1995 with a
$1.8 million estate and a will of 176 words he
typed up himself. There's something to be said
for brevity, but in this case, his family paid
$450,000 in estate taxes, something that could
have been easily avoided. And his executors
had to pay to go to court to get approval to
complete administrative acts, such as selling
real estate.
Source: Mayoras, Andrew W. & Danielle B.
Trial and Heirs, Famous Fortune Fights!
What is a Living Trust?
A Revocable Living Trust is an Estate Planning
device that utilizes many planning benefits.
At Incapacity – No Court Control
Financial Power of Attorney
Power of Attorney for Healthcare Decisions
At Death – No Probate
What is a Living Trust? (Cont’d)
Time – Distribution is quick and easy
Flexibility and Control – while you are
living, you can amend or cancel your Living
Trust
Privacy – the documents are private and
accessible by the public
How Does a Living Trust Work?
Grantor (You)
Creates and Controls
the Trust
Initial Trustee
(You)
Manages the Trust
Successor
Trustee(s)
Steps in for Trustee
at Incapacity or
Death
Beneficiaries
Receives Assets
When You Die
Other Important Planning
Considerations
Naming a Guardian for Your Minor Children
Providing for dependents with special needs
The flexibility to choose trustees and agents for
different parts of your Estate Plan
Beneficiary Choice
Children – distribution scheme
Charities – you can specify how much you want to
donate, and how these funds will be used
Thank You for Attending!

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