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Estate Planning What to Consider When Creating Your Plan

Solid Estate Planning Includes Wills Trusts Beneficiary designations Distribution of assets/property Ownership designations Financial & medical powers of attorney Living wills All adults need one May need a financial professional and/or attorney

Benefits of an Estate Plan Protects your assets and healthcare decisions while living Enforces your end-of-life healthcare wishes Provides a sense of comfort You determine what happens to your assets and your minor children Distributes your assets:

CREATING A WELL-ROUNDED ESTATE PLAN 10 keys to creating a plan for your wishes

Create a Will Keys to Create an Estate Plan A will can help you* Divide assets between your heirs the way you wish Avoid the state’s involvement in the division of your assets 1 *Qualified retirement plans typically have requirements on who can receive benefits; these will supersede a will.

Create a Financial Power of Attorney Keys to Create an Estate Plan Choose someone you know well and with whom you trust your finances Can be effective immediately or upon your disability Avoids an expensive judicial conservatorship 2

Steps to Create an Estate Plan Create a Medical Power of Attorney Keys to Create an Estate Plan 3 Appoints someone in charge of your healthcare when you are unable to make decisions Avoids an expensive judicial guardianship

Include a Living Will Keys to Create an Estate Plan 4 States whether or not life- sustaining measures are to be used in case of terminal illness Clearly states your wishes Takes the decision-making burden off of your loved ones

#5: Review Designations Steps to Create an Estate Plan Review Designations Keys to Create an Estate Plan 5 Give control over wills/trusts Review designations for: Life insurance IRAs/401(k)s Investment accounts Bank accounts Real estate Vehicles

Set up Trusts for Minor Beneficiaries Keys to Create an Estate Plan 6 Allows you to: Support them while they are still minors Stipulate how an heir can receive an inheritance and at what age Appoint a trustee to make decisions in accordance with your wishes

Life Insurance Policies for Beneficiaries Keys to Create an Estate Plan 7 Life insurance can provide for your loved ones. Review the beneficiaries on your life insurance policies. If someone other than you or your estate is named as a beneficiary, the life insurance policy will generally pass outside of probate. Can be funneled into a trust for your minor beneficiaries

Distribute Assets While You’re Still Living Keys to Create an Estate Plan 8 Pass on more to heirs while you’re still living You can give up to $14,000 to as many people as you wish Neither party pays taxes or files gift tax returns Couples can give $14,000 each Source: IRS.gov –IR , Oct. 30, 2014

Update Your Estate Plan Regularly Keys to Create an Estate Plan 9 Make periodic adjustments to reflect: Life changes Financial changes Changes in tax laws

Inform Heirs Where to Find Documents 10 Get a safe deposit box at your bank or credit union Give authorization to your executor or heir Make sure they know the location of the key Keys to Create an Estate Plan

The Bottom Line Protect your assets while alive Protect your healthcare decisions Minimize estate taxes and probate fees Ensure care for your family after your death Divide your assets according to your wishes Source: IRS.gov as of 03/02/2015

Inform Heirs Where to Find Documents Find an attorney who specializes in estate planning naepc.org Ask around Financial professionals Accountants Friends or relatives

Want More Information? Visit principal.comConsult a qualified attorney

The subject matter in this communication is provided with the understanding that The Principal ® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group ®, (The Principal®), Des Moines, IA ©2015 Principal Financial Services, Inc. Des Moines, Iowa All rights reserved. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system without prior written permission from the Principal Financial Group ®. PD | t hl | 03/2015 WE’LL GIVE YOU AN EDGE ® Important Information

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