ESTATE PLANNING WORKSHOP PRESENTED BY Allan M. Soto, Esq McFadden Avenue Westminster, CA
WHAT IS AN ESTATE ?
PensionPlan IRAs LifeInsurance BankAccounts RealEstate BusinessInterests OtherAssets Stocks Home ProfitSharingPlan ESTATE PLAN COMPONENTS
WHY DO ESTATE PLANNING? After Death Control Who Receives Assets Pay Less Court Fees, Taxes At Incapacity Control Assets, Medical Decisions
COMMON ESTATE PLANS
PLAN # 1 WHAT IS A WILL
WHAT IS PROBATE? (ADMINISTRATION)
GROUCHO MARX
ADVANCE HEALTH CARE DIRECTIVE
PLAN #2 DOING NOTHING
PLAN #3 JOINT TENANCY PLAN #3 JOINT TENANCY 1. Only Postpones Probate 2. Unintentional Disinheriting 3. Incapacity = Court Interference 4. Difficult To Remove Co-Owner 5. Lawsuits 6. Debts/Tax Problems
PLAN #4 GIVING AWAY YOUR ASSETS
TAX-FREE GIFTS $14,000 to $28,000 Per Year Per Beneficiary Unlimited Tuition, Medical Expenses
APPRECIATING ASSETS ARE BEST TO GIVE AWAY Removes Asset and Future Appreciation From Your Estate Asset Keeps Your Cost Basis Recipient Pays Capital Gains Tax When Sold
GIVE ASSETS TO CHARITY Reduces Estate Taxes Reduces Estate Taxes Reduces Income Taxes Reduces Income Taxes Does Not Affect Gift/Estate Tax Exemption Does Not Affect Gift/Estate Tax Exemption Lets You Decide Who Your Money Will Help Lets You Decide Who Your Money Will Help
PLAN #5 BENIFICIARY TRANSFER
PLAN #6 REVOCABLE LIVING TRUST Avoids Probate at Death Prevents Court Control of Assets at Incapacity Provides Maximum Privacy Quick Distribution of Assets to Beneficiaries Assets Can Stay in Trust Prevents Unintentional Disinheriting Reduces or Eliminates Estate Taxes
LIVING TRUST VS. WILL
YOU KEEP CONTROL Buy/Sell Assets as Before Change/Cancel Any Time Trust Contains Your Instructions
TESTAMENTARY TRUST
WHAT ARE TAX DEFERRED ACCOUNTS
NEW IRA RULES
Understanding ESTATE TAXES
DETERMINING YOUR TAXABLE ESTATE Federal Estate Taxes 40% 5,000,000 4,000,000 3,500,000 1,850, , ,000 0 LIFE INSURANCE BANK ACCOUNTS INVESTMENTS HOME BUSINESS INTERESTS IRA, OTHER RETIREMENT BENEFITS PERSONAL PROPERTY
BENEFITS OF A CRT Convert Appreciated Asset Into Lifetime Income Pay No Capital Gains Tax Reduce Income and Estate Taxes Benefit Charity
SIX STEP PLAN OF ACTION 1. Inventory Assets/Debts 2. Write Down Your Objectives 3. Select a Professional to Help 4. Have Legal Documents Prepared 5. Put Plan into Action 6. Review and Change As Needed
OtherAssets PensionPlan Life Insurance BusinessInterests ProfitSharingPlan BankAccounts Stocks Home IRAs Real Estate SUCCESSFUL ESTATE PLAN