1. Future Trends Regarding Estate Planning Preparing the Next Generations
Susan Shockey, PhD, CFCS, CPFFE
Certified Personal and Family Finance Educator
Financial Security Across the Lifespan

3. Financial Security Across the Lifespan
Trends: 1. About 70 % of planned estates come unglued after the estate transitions Most givers are not concerned about the size of their estate, but the impact of their wealth on their unprepared heirs Traditionally financial advisors focus on preparing assets for the givers, little is done to prepare heirs to receive and manage resources. \
Financial Security Across the Lifespan

4. Financial Security Across the Lifespan
Trends: 4. Heirs seek information, but parents provide little information Families are encouraged to develop “Family Mission Statement” to develop a unifying core to estate planners Companies offer digital estate planning of organizing digital assets: , online bank and business accounts, social media accounts, electronic files. \
Financial Security Across the Lifespan

5. Financial Security Across the Lifespan
Situation: Baby Boomers will pass an estimated $30 trillion on to the next generation. Facts: In 2017 an individual could leave $11 million without paying Federal Estate Taxes ($5.49 million to an Individual) Individuals are increasingly responsible for their own wealth preservation. \
Financial Security Across the Lifespan

6. Obstacles to Estate Planning
1. Failure to plan for death 2. Outdated Plan 3. Overlooked Provisions 4. Improper Tax Planning 5. Improper Ownership of Assets 6. Failure to plan for disability, illness, changes in employment 7. Failure to consider inflation 8. Lack of liquidity 9. Psychological factors, such as dealing with mortality and procrastination

7. Today’s Focus – Estate Planning
Learn more & prioritize actions related to:
Planning Ahead
Talking About Financial Legacy
Financial Tools
Protecting Your Finances
A Plan for Making Decisions

8. Term “Estate Planning”
Encompasses the
Accumulation
Conservation
Distribution of an estate
Overall Purpose – Develop a plan that will enhance and maintain the financial security of family members

9. Planning Ahead

10. Planning Ahead Know Where Financial Information is Stored
Encourage Family Members to have a Will
Discuss Estate Plans
Know Loved-ones’ End of Life Wishes
Discuss Power of Attorney for Medical and Financial

11. Talking about Financial Legacy

12. Family Legacy: Discussion Points
Do you have a Will? If so, where is it located?
Have you granted anyone a durable power of attorney for finances? If so, who has that power, and where is the document?
Have you prepared an advance directive or a power of attorney for health care?
Do you a have a safe deposit box? Where is the key and list of contents?

13. Family Legacy: More Discussion
Where are your important papers: e.g., birth certificates, Social Security, military service records?
Where do you keep your life, health, and property insurance papers?
Have you made a list of investments? What are the mailing addresses of the institutions that have the investments?
Have you made a list of your personal and real property? Where is the list?

14. Family Legacy: More Discussion
Who are your financial advisers? What are their addresses?
Have you developed a letter of last instructions? If so, where do you keep it?
If you have a retirement program, is there a death benefit for the survivors? If so, who should the survivors contact?

15. Tax Systems Transfer Taxes Estate Gift
Generation Skipping Transfer Tax
Qualified Domestic Trust
Estate
Income Taxes

16. Financial Tools & Legal Tools
Provide Steps to Take with the Least Risk
Develop an Estate Planning Team

17. The Estate Planning Team
You
Financial Planner
Attorney
Bank Trust Officer
Insurance Specialist
Accountant
Investment Counselor

18. Goals: Easier to Pay bills. Plan for Future Incapacity
Goals: Easier to Pay bills Plan for Future Incapacity Give Another Person Legal Authority to conduct financial transactions on one’s behalf.
Tools:
Joint Bank Accounts
Automatic Bill Payments
Power of Attorney
Living Trusts

19. Issue: If plans have not been made, there are fewer options, more complex, and more intrusive.
Tools:
Representative Payee maybe appointed
If Lack of Trust is not an issue, direct deposit of monthly income checks into a joint account
Conservatorship/Guardianship
Involves a court process

20. Guidelines

21. Guidelines for Financial Legacy Planning
Financial Legacy carries with it the expectation that assets will be used in a manner that reflects the givers’ values.
Understanding future trends and their impacts are of importance to family members who are the givers and to the future heirs, who are the receivers.

22. Guidelines Give the family member as much control as possible
Involve and inform your family member
Respect financial privacy
Keep accurate and complete records
Keep your family member’s money separate from your own
Reconcile bank statements

23. eXtension Resource Prepare Your Estate Plan

24. Protecting Your Resources

25. Guidelines for Protecting Yourself
Different Types of Retirement Plans
Social Security
Pension
Roth IRA
Traditional IRA
CSRS or FERS (Federal Government)
Others

26. Guidelines for Protecting Yourself
Paying for Care
Long-term care Insurance
Veterans benefits
Medicare and Medigap
Medicaid

27. A Plan for Making Estate Planning Decisions

28. A Plan – 7 Step Model Identify the Purpose of Wealth Transition
Gather Information
Generate Options
Evaluate Options
Create a Plan
Act on the Plan
Reassess the Plan Yearly

29. References
Fontaine, C. J. (2014), Fundamental of Estate Planning, 14th Edition. The American College Press
Hayhoe, C. (2005), Protecting Your Retirement & Other Financial Information for Family Caregivers. Virginia Cooperative Extension, NEFE – National Endowment for Financial Education.
Presser, V & Williams, R. (June 2010) The Future of Estate Planning. Trusts & Estates (trustsandestates) available: %26%20Estates%20Article%20June%202010pdf.pdf
Schmall, V.L., Nay, T., and Bowman, S. (October 2005), Helping Older Family Members Handle Finances. A Pacific Northwest Extension Publication (PNW 344), Oregon State University, Washington State University, and University of Idaho.