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Estate Planning What is an Estate Plan? A good estate plan: more than just a will – Coordinates how investments and insurance will be handled – Manages emergency, retirement, and other assets – Brings peace of mind to your loved ones – Keeps you on track to meet financial goals

Estate Planning Your Estate Planning Team Seek help from the following professionals to create a proper estate plan: – An attorney – A CPA – An insurance consultant – An investment advisor – A financial planner

Estate Planning Your Estate Planning Team When looking for professionals, consider soliciting recommendations from other professionals in a similar field. – Example: ask your banker if he or she knows a good CPA who specializes in estate planning.

Estate Planning Maintaining Your Estate Plan Meet with your team annually, if possible – Review your documents – Ensure everything is up-to-date with recent changes in your life – Check to see if new laws effect your plan – Revise, if necessary, to stay on track with goals

Estate Planning A 12-Step Process There are 12 steps to creating and maintaining a comprehensive estate plan Remember, it’s an ongoing process – A proper estate plan will be changed and updated throughout your lifetime

Estate Planning A 12-Step Process 1.Organize all your important information 2.Create a power of attorney 3.Create a health-care proxy 4.Create a living will 5.Create a will to name executors 6.Protect your children financially

Estate Planning A 12-Step Process 7.Create a revocable living trust 8.Ensure your insurance is in order 9.File beneficiary designations, and confirm the title to your financial accounts and estate 10.Give something back—consider charitable donations 11.Communicate your plans 12.Review your estate plan

Estate Planning Your Estate and Taxes In most cases, after you pass on taxes must be filed for your estate. Federal tax: Federal Estate Tax State tax – Depends on where you live – Pennsylvania Inheritance Tax in PA

Estate Planning The Pa. Inheritance Tax Can differ majorly from Federal Estate Tax The following are just a few examples

Estate Planning Is Property Included in the Estate? Federal Estate Tax: Based on the total assets of a U.S. citizen or resident, regardless of the location of the assets. Pennsylvania Inheritance Tax: No Pennsylvania Inheritance Tax on real estate or tangible personal property located outside the state.

Estate Planning Retirement Benefits Federal Estate Tax: For estates of those who died after Dec. 31, 1984, all retirement benefits are includable in the estate. Pennsylvania Inheritance Tax: Proceeds from qualified employee benefit plans (if any) that are exempt for Federal Estate Tax purposes are exempt from the Pennsylvania Inheritance Tax.

Estate Planning Filing and Paying the Tax Federal Estate Tax: The due date for filing the return and paying is nine months after the date of death. Pennsylvania Inheritance Tax: The due date for filing the return and paying is nine months after the date of death.

Estate Planning Talking about Estate Plans Start the discussion: – It may be awkward, but if other members of your family—like your parents–don’t have estate plans, start the discussion – Find a way to broach the subject so it doesn’t sound like you no longer trust your parents’ judgment to make decisions

Estate Planning Talking about Estate Plans Timing is everything – Start this dialogue sooner rather than later. – Don’t wait for a crisis when you might not have time to do the background work before making a crucial decision.

Estate Planning Talking about Estate Plans Know what they want – Ask your parents about how they want things to be handled in case they are incapacitated. – Once you have a grasp of their requests, your role is to help safeguard their assets and make sure their wishes are carried out.

Estate Planning Talking about Estate Plans Be inclusive – Family finances can be one of the biggest sources of family strife. – If you have siblings, include them from the outset. – Having support and making mutual decisions regarding your parents can help in times of crisis.

Estate Planning Resources The PICPA – Kiplinger’s Estate Planning webpage – AARP’s Estate Planning webpage – The Pennsylvania Department on Aging –