Truth About Estate Planning Pauly Law Offices, Inc. Arthur J. Pauly, Jr. JD What You Should Know Before You See An Attorney

The Day After Your Estate is Settled

Stewardship 1 Timothy 5:8 “…but if any provide not for his own, and specifically for those of his own house, he hath denied the faith, and is worse than an infidel.”

Stewardship Matthew 25:42 42"Therefore keep watch, because you do not know on what day your Lord will come. 43But understand this: If the owner of the house had known at what time of night the thief was coming, he would have kept watch and would not have let his house be broken into. 44So you also must be ready, because the Son of Man will come at an hour when you do not expect him.

Definition of Christian Estate Planning Wisely managing and controlling your property for you and your loved ones while you are alive and competent Providing for your care and the care of your loved ones in the event of a physical or mental disability On your death, giving what you have to whom you want, the way you want, when you want, all at the least possible overall cost in taxes, court costs, attorney’s fees and administrative expenses, keeping Biblical principles in mind throughout

Proper Estate Planning Caring for loved ones as if you were still there With your resources With your love With your wisdom

The Estate Planning Process Education Design Drafting Documents Implementation

Control my property while I’m alive and well; Plan for me and my loved ones if I become disabled Give what I have – To who I want – The way I want – When I want Estate Planning Defined

Common Planning Techniques Owning property jointly Designating a beneficiary Signing a will

Traditional Estate Planning Gross Estate Your Will Non-probate transfers Jointly owned property Life Insurance IRA’s 401(k)’s Annuities Planned Distributions Property titled in your name Probate Process

Traditional Will Hebrews 9:16,17 16In the case of a will, it is necessary to prove the death of the one who made it, 17because a will is in force only when somebody has died; it never takes effect while the one who made it is living.

Wills Can Fall Short of Estate Planning Goals Won’t provide for your disability Won’t necessarily give what you have: –to whom you want –the way you want –when you want Certainly won’t avoid probate

Last Will of Jackie K. Onassis

The Living Trust It plans for your disability It plans for your loved ones Contains your loving instructions Its private and confidential Reflects your hopes, fears, dreams and values Its good in every state

How to Distribute to Your Heirs No protection Creditor protection Predator protection Self protection Estate tax protection Outright In Trust

Disinheriting That One Relative This should be done carefully. Disinheriting a Relative is a major cause in the courts becoming involved in your estate.

Basic Estate and Gift Tax Rules It’s a tax on everything Estate and gift taxes begin at 37% $12,000 annual exclusion* Unlimited marital deduction $3,500,000 unified credit** Unlimited charitable deduction Use it or lose it * Indexed for future inflation * * Varies depending on the year of death, goes to $1,000,000 In 2011

Tom’s Will Tom’s Will Plan Cindy Peter, Paul & Mary Peter, Paul & Mary

Tom’s Will Tom’s Will Plan $0 Tax Cindy TAXES Peter, Paul & Mary Peter, Paul & Mary

A Better Plan $0 Tax Family Trust Family Trust Marital Trust Marital Trust $0 Tax Peter, Paul & Mary Peter, Paul & Mary $0 Tax Tax saving Coupon $0 Tax

Maximizing the Use of the Credit Shelter Exemption One dimensional planning –All to spouse –Wastes one unified credit Two dimensional planning –Use of credit shelter trust on first death –Saves a minimum of 500,000 in estate taxes

Do not try this at home! Prov. 11:14 “Where no counsel is, the people fall: but in the multitude of counselors there is safety.” Prov. 15:22 “Without counsel purposes are disappointed: but in the multitude of counselors they are established.”

It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much you lose a little money - that is all. But, when you pay too little, you stand to lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot - it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better. John Ruskin ( )

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