ADVOCIS BANFF SCHOOL --- August 2006 PRACTICAL ESTATE PLANNING ISSUES Peter Rudin, CA, CLU

To Be Addressed--- Definitions, Etc. Beneficiaries (Who, Why, How Long) Objectives (Approach, Scope, Duration and Strategies) Executors (Choices, Implications) Wills (From KISS to Complex) Powers of Attorney (Who, What, Etc…) Personal Directives, Etc. Oh Yes, About Insurance…

PRACTICAL ESTATE PLANNING ISSUES --- Continued I. Definitions, Etc: “What is Estate Planning?” Estate planning can be described as the process by which individuals arrange for the ultimate transfer of their property so as to satisfy their personal objectives while trying to minimize consequent taxes and other costs. For individuals with simple estates, this may involve little more than some discussions followed by the execution of a will, powers of attorney and acquiring some life insurance. For business owners and other high net worth clients, it can be a lengthy process involving their family members, business associates and professional advisors complete with sophisticated tax planning and a wide array of complex legal documents.

PRACTICAL ESTATE PLANNING ISSUES --- Continued The process can be costly and time-consuming, but can provide great benefits to one’s family and to the community. Financial advisors often have a vital role to play in ensuring that estate planning is not only considered but actually carried out.

PRACTICAL ESTATE PLANNING ISSUES --- Continued Please see the new Estate Planning section in the Advocis Best Practices Manual for more detailed information about the Financial Advisor’s role in estate planning, the role of other professionals, and the process itself.

PRACTICAL ESTATE PLANNING ISSUES --- Continued II. The Beneficiaries: (Those who benefit from the individual’s estate) WHO IS TO BENEFIT – – Spouse – Children – Parents – Other relations – Other dependants – Charities & Institutions – Friends

PRACTICAL ESTATE PLANNING ISSUES --- Continued WHY THEY ARE TO BENEFIT – – Need – Deserving – Conscience Requires – Somebody Has To … STATUS / ENDURANCE OF BEQUEST – Permanent & Outright – Benefit for a Period of Time – Contingent --- PERIODIC REEVALUATION - Changing views – How often to revisit?

PRACTICAL ESTATE PLANNING ISSUES --- Continued III. Testator’s Objectives APPROACH --- Explicit vs. Default SCOPE Goals for: Family & Friends Specific Community or Group Society as a Whole

PRACTICAL ESTATE PLANNING ISSUES --- Continued 2. Duration: – Focus on the Next Generation – Focus on the Current/Prior Generation – Long term (Multi-Generational) Focus 3. Strategies – Efficient Probate – Tax Minimization – Customize and Systemize – KISS Principle

PRACTICAL ESTATE PLANNING ISSUES --- Continued IV. Executor Selection – Obvious/Default Choices (Family, Friends and Advisors) – Issues to Consider (Competency, Willingness, Jurisdiction, Conflicts, Numbers) – Alternates and Substitutes (Needed) – Better Choices – Impact on Objectives – Periodic review

PRACTICAL ESTATE PLANNING ISSUES --- Continued V. Wills – Simple Vs. Effective & Detailed – Who is Drafting / Executing – It Takes Time… – Periodic Updating – Cost/Benefit

PRACTICAL ESTATE PLANNING ISSUES --- Continued VI. Powers of Attorney – Who? (Competency, Willingness, Conflicts) – How Many? (One vs. Plural; Together or Split Duties) – Alternates (Needed) – Powers – Enduring Nature --- Periodic Reevaluation

PRACTICAL ESTATE PLANNING ISSUES --- Continued VII. Personal Directives, Etc. – Needed, Wanted or Not??? – Who? (Competency, Willingness, Conflicts, Numbers) – How Many? – Alternates – Powers vs. Instructions – Again, Periodic Reevaluation

PRACTICAL ESTATE PLANNING ISSUES --- Continued VIII. Oh Yes, About the Insurance… – Family Liquidity Needs / Wants – Addressing Taxation – Bequests – Timing --- The Beauty of Insurance

PRACTICAL ESTATE PLANNING ISSUES --- Continued VIII. Oh Yes, About the Insurance… – Confidentiality / Security – Joint Last Coverage – Beneficiary Designations – Policy Ownership ….Copyright RUDCO Insurance Inc. (2006)