American Legion – Beaver Dam WELCOME ESTATE PLANNING COURSE Sandy Heiar Seminar Dinner Las Vegas Show

Estate Planning Education Seminars Guest Speakers Karl and Mike have been conducting Estate Planning Seminars for over 20 years to seniors concerned about financial planning, estate taxes, and nursing home issues. These seminars are invaluable and provides answers to tough estate planning questions. We think you will enjoy this presentation. Karl Dovnik, Jr. Elder Law Attorney Michael K. O’Dell

10 Costly Mistakes Seniors Make: 1.Not Avoiding Probate 2.Not disinheriting the IRS from their estate plan 3.Not protecting their life savings from a nursing home 4.R-I-S-K-Y investments during retirement years 5.Procrastination – Not completing their estate plan 6.Not Utilizing an Attorney with their planning 7.Thinking a “Will” is all they need. 8.Not knowing the importance of Power of Attorneys 9.How to protect assets with advance planning 10. Getting advice from the neighbor My neighbor told me that all I need is a Will. Therefore, my estate planning is completed. My neighbor should know because he is the Used Car Manager at the local dealership.

Goals of Legal Protection Control my property while I’m Alive. Take Care of me and my loved ones if I become disabled. Give what I have to whom I want, the way I want, when I want while I am alive. Save every last tax dollar, professional fee, and court cost possible. Protect assets if I was to enter a nursing home.

Why should our family go through probate when we already know that we want the estate to pass directly to our family. PROBATE CAN TAKE OVER A YEAR Disadvantage of going through Probate Those who do and those who don’t have wills are subject to probate court. The cost of probate and time delays are significant for the remaining family. If your estate if over $50,000 in total assets – your estate must be probated. During probate, you lose control – the court system takes over. Probate can be very expensive – attorney fees – court costs – 3.5% to 10% Probate can be a stressful situation for your heirs. Probate proceeding are public record. Average probate takes at least 6 months to a year to complete. During Probate, 20% of all Wills are contested by family members.

Disadvantages of a Will – Court Must Approve It ! A Will is not a legally binding document until the court approves it. A Will does nothing if you become incapacitated. During Probate, the court decides a Will’s validity. Intestates statutes are for people who don’t have wills. A WILL GUARANTEES PROBATES Our Goal is to Pass our estate to our family without the hassle of probate delays and the costs associated.

THINGS YOU CAN DO TO AVOID PROBATE 1.PAYABLE ON DEATH ACCOUNTS AT BANK – (POD ACCOUNTS) – BANK 2.TRANSFER ON DEATH ACCOUNTS – STOCK – BROKERAGE ACCOUNTS 3.IRA’S – PRIMARY BENEFICIARIES – CONTINGENT BENEFICIARIES 4.LIFE INSURANCE – PRIMARY BENEFICIARIES – CONTINGENT 5.ANNUITIES – PRIMARY BENEFICIARIES – CONTINGENT 6.REAL ESTATE – TOD – TRANSFER ON DEATH – AVOID PROBATE SIX SIMPLE WAYS TO AVOID PROBATE

WHAT ABOUT THE LIVING TRUST? The Living Trust serves several purposes 1.Avoiding Probate – Assets are placed in Trust 2.With Estates over $3,500, – There are Estate Tax Advantages. 3.Transfer property from out of state without probate – eliminating multiple probates. Many times you can use our SIX SIMPLE WAYS TO AVOID PROBATE. A LIVING TRUST DOES NOT PROTECT ASSETS FROM A NURSING HOME

Revocable Living Trust When Does It Make Sense ! Trusts avoid probate court and it expenses Trusts are one means to reduce or eliminate estate taxes. Trusts can protect special needs dependents. Trusts are Flexible and can be changed. Trusts control when beneficiaries receive inheritance Trusts are difficult to contest. Trusts keep the details of your estate private. If you own real estate in other states, eliminates multiple probates. A-B bypass trust allows for a double federal estate exemption.

Marital Property Agreement Wisconsin – Husband & Wife Cost Basis - $ 40,000 or $ 20,000 per spouse Current Value - $ 200, $ 80,000 Capital Gain Taxes Simple Way to Avoid Probate – Substitute Will

Estate and Gift Taxes Estate Taxes are due nine (9) months after death. The Federal tax exemption for 2009 is 3.5 Million. If you are planning to die, do it in 2010 – No Estate Tax during 2010 Sunset Provision – December 31, 2010 – Federal Tax is Repealed. $13,000 – Uniform Gift Tax Exemption. What are the Federal Estate Tax Issues?

What About Joint Tenancy? Can’t We Avoid Probate by Putting Our Son As the Owner of Our Accounts or Property? If a Joint tenant becomes incompetent, a court ordered Guardianship might be required. IRS Gift Tax may result. Son goes through divorce, bankruptcy, credit problems, Law Suit The cost of stepped-up values may be substantially affected. Under joint tenancy, one can’t sell or borrow money without permission of the other joint tenants.

POWER OF ATTORNEYS THE CORNERSTONE DOCUMENTS OF EVERY ESTATE PLAN 1.Durable Financial Power of Attorney 2.Healthcare Power of Attorney Should be prepared with an Elder Law Attorney – Special Language

Next Speaker Michael K. O’Dell Always review your documents each year Have Power of Attorney for Health and Financial Funeral Trust Completed Living Trust Wills Always work with an attorney that specializes in Estate Planning. Thank You,

Nursing Home Issues Advance Planning

A NURSING HOME CAN WIPE-OUT A LIFETIME OF SAVINGS ! 93% OF SENIORS OVER 65, DON’T HAVE NURSING HOME INSURANCE !

Without Planning, You Could Lose Everything ! AVERAGE COST- $ –NURSING HOME 50% OF US WILL ENTER A NURSING HOME. 70% OF SINGLES WILL REACH POVERTY WITHIN 33 WEEKS. 7 0UT OF 10 COUPLES WILL HAVE ONE SPOUSE ENTER A NURSING HOME. A NEW CASE OF DIMENTIA ARISES EVERY 7 SECONDS. The Legal planning that you do today…could determine if your children and grandchildren inherit anything from you. Asset Protection is possible. Advance Planning Can Protect Assets !

Medicare and Medicaid MEDICARE COVERAGE Medicare will cover the first 20 days at 100% as long as the person came from a 3 day minimum hospital stay. The next 80 days will be covered by Medicare and Supplement Insurance. To continue coverage past 20 days the person must show improvement with therapy and rehab. MEDICAID COVERAGE IF ELIGIBLE Medicaid will cover all of your nursing home expenses. However, you must prove that you are eligible for this coverage. You must apply at Health & Family Services to prove you are eligible. On the next slide you will see what it takes to become eligible.

MEDICAID ELIGIBILITY RULES YOU MUST FILL OUT A MEDICAID APPLICATION AND APPLY AT THE COUNTY IN WHICH THE NURSING HOME IS LOCATED. This process can be complicated and stressful. $ 2000 – Allowable Assets$ 2000 – Allowable Assets $1500 – Life Insurance$1500 – Life Insurance $4500 – Automobile$4500 – Automobile Personal PossessionsPersonal Possessions Wedding RingsWedding Rings Funeral Trust- Up to $12,500 per spouseFuneral Trust- Up to $12,500 per spouse Family “Estate Trust”Family “Estate Trust” If completed 60 months in advance. Single/Widowed Married Couple Spousal Impoverishment Protection $ 2000 – Confine Spouse Plus Funeral Trust if planned in advance. Confined spouse Community spouse $50,000 – 109,560 – Liquid Assets$50,000 – 109,560 – Liquid Assets Unlimited Value – AutomobileUnlimited Value – Automobile IRA, 401K, Qualified Plans Exempt.IRA, 401K, Qualified Plans Exempt. $1500 – life insurance$1500 – life insurance Funeral Trust - $12,500Funeral Trust - $12,500 Home – Exempt - $500,000Home – Exempt - $500,000 Family “Estate Trust”Family “Estate Trust” Income - $45.00 per month Income- $ 2, for spouse

Things to Remember about Medicaid ! Government employees can’t give you advice. They only score your application for Medicaid coverage. County Case Workers The current look-back period on asset transfersThe current look-back period on asset transfers or gifts is 60 months. Since 02/08/06 or gifts is 60 months. Since 02/08/06 Gifts prior to 02/08/06 are grandfathered underGifts prior to 02/08/06 are grandfathered under the 36 month rule. the 36 month rule. You should always seek professional advice onYou should always seek professional advice on the Medicaid application process. Planning is the Medicaid application process. Planning is important! important!

Planning Strategies to Protect Assets Since most seniors don’t have nursing home insurance, what planning strategies should we be doing? IT’S NEVER TOO LATE TO PROTECT YOUR LIFE SAVINGS! Advance Planning is Essential in Preserving Your Assets For The Future. Let’s Take A Look At The Planning We Should Be Doing. PLANNING STRATEGIES YOU SHOULD DO NOW!

Irrevocable Funeral Trust Planning FUNERAL TRUSTS FUNERAL TRUSTS Medicaid Exempt Up to $15,000 Growth on Trust WCCU will help you set up trust Can be used with ANY funeral home Flexible and Portable Protected from Nursing Home

REAL ESTATE STRATEGIES If a single person or a surviving spouse enters a nursing home and he/she is unable to pay their way, the state is will put a Medicaid lien on property. Life Estate Planning with Children A huge mistake is the outright gifting or transfer of one’sA huge mistake is the outright gifting or transfer of one’s property to ones children. property to ones children. A Retained life estate gift reduces the exposure to legalA Retained life estate gift reduces the exposure to legal claims, probate, provides stepped up cost basis to heirs. claims, probate, provides stepped up cost basis to heirs. Protects property from a nursing home after 60 months.Protects property from a nursing home after 60 months. Can be used for home, land, cabin, etc.Can be used for home, land, cabin, etc.

In 2001, when Mildred was 70 she had $100,000 in the bank. She wanted to pass at least $50,000 to her children or grandchildren at death.In 2001, when Mildred was 70 she had $100,000 in the bank. She wanted to pass at least $50,000 to her children or grandchildren at death. Her financial planner advised Mildred to do an “Estate Planning Trust” with $50,000 naming her children as beneficiaries.Her financial planner advised Mildred to do an “Estate Planning Trust” with $50,000 naming her children as beneficiaries. After 60 months this trust would be exempt from the nursing home and avoid probate.After 60 months this trust would be exempt from the nursing home and avoid probate. For some reason this planning was never completed. In January, 2007 – Mildred entered the nursing home with theFor some reason this planning was never completed. In January, 2007 – Mildred entered the nursing home with the $100, in the bank – Nursing home costs - $6900 monthly. $100, in the bank – Nursing home costs - $6900 monthly. February, 2009 – Mildred’s estate is at $ and she applies for Medicaid.February, 2009 – Mildred’s estate is at $ and she applies for Medicaid. Lack of Planning eliminated the inheritance to Mildred’s children and grandchildren. Don’t let this happen to you. Planning could have saved the inheritances for her family. MILDRED’S STORY

The Estate Trust Requires Advance Planning Grandchildren - $ ____________ Children - $ ____________ Church - $ ____________ $ 1000 $ 5000 $ 10,000 $ 15,000 $ 20,000 $ 25,000 $ 50,000 WE CAN HELP YOU SET UP THE ESTATE TRUST

WE NOW OFFER OFFERS: FUNERAL TRUSTS ESTATE TRUSTS ESTATE REVIEWS INVESTMENT REVIEWS FREE CONSULTATION

The Las Vegas Show will be starting after dinner Enjoy Dinner

DEAN & JERRY

When I was 17

When I was 21

When I was 35

Autumn of the Year

1964 is here again ! 1964

HOPE YOU ENJOYED THE SHOW