1. Estate and Long Term Care Planning
Michael B. Cohen
Michael B. Cohen & Associates
12201 Merit Drive, Ste. 230
Dallas, Texas 75251

2. What do you want to know?

3. Estate Planning Essentials
Why do we do it?
The family.
What can be done?
The rules.
How do we do it?
The secrets.

4. Definition of Estate Planning
I want to control my property while I’m alive and well; and
Plan for me and my loved ones if I become disabled.

5. Definition of Estate Planning
Give what I have
To whom I want,
When I want,
The way I want; and
When I die, I want my assets to go to the people I love, without any delay.

6. Do I need…
A will?
A trust?

7. The Law You Need To Know! WILL RLT Ownership @Death Spouse/Beneficiary
Joint Beneficiary
IRA/401K
LIFE INSURANCE
ANNUITY
PROBATE COURT
TO FAMILY
POD
TOD
ITF
INDIVIDUALLY
WILL
TO THOSE YOU CHOOSE WHEN YOU WANT THE WAY YOU WANT
IN TRUST
RLT

8. Will
Individually
Owned
Assets =
Will =
Probate

9. What is probate?

10. What is a trust? Two types of trusts: -Revocable -Irrevocable
Testamentary Trusts
Living Trusts
-Revocable
-Irrevocable

11. DIFFERENT TYPES OF TRUSTS
IRR
TYPICAL
TRUST
RLT
MIT
ALL Control
ALL Income
ALL Principal
ALL Control
ALL Income
NO Principal (?)
NO Control
NO Income
NO Principal

12. Keys to an effective estate plan
Control of process
What to do
How to do it
Personal instructions
Proper asset ownership

13. TLC Estate planning strategy
Personal planning goals
Catastrophic illness protection
Remarriage protection
Creditor protection
Divorce protection
Values promotion

14. Federal Estate Tax Reduction
Trustee instructions:
Transfer up to the exemption equivalent to Family Trust, put any excess in Marital Trust
Marital
Family
1st $11,180,000
Excess
Survivor may be Trustee and Beneficiary of both trusts.

15. Retirement Plan Overview
Excise tax planning “Too soon” Premature distributions penalty 10% excise tax “Too little” Minimum distribution penalty 50% excise tax

16. Protecting Your Family * Providing for Your Needs
Medicaid Eligibility
Protecting Your Family * Providing for Your Needs

17. Medicaid Myths They can take your home.
You have to give your assets away to protect them.
If you give assets away you have to wait 60 months to qualify.

18. Medicaid Eligibility Income Limit: $2,250/month for single person
Asset Limit: $123,600 (PLUS!) for well spouse
Exemptions, exceptions, expansion

19. Medicaid Eligibility Exemptions:
Home (must have intent to return home for singles)
Car
Personal effects
Pre-paid funeral
Pre-paid burial (up to $1,500)

20. Medicaid Eligibility Crucial Dates: Look Back Date:
In nursing home AND apply
Look Back Period:
60 months

21. Medicaid Eligibility Calculating the spend down Gifts Transfers
IRS gifts vs. Medicaid gifts
Transfers
Compensated or uncompensated?
Calculating the penalty period
Monthly nursing home cost $5, (TX)

22. Medicaid Eligibility Long-Term Care Insurance Benefit or burden?
3 years or less
Home care
Investment?
Guarantees results

23. Medicaid Eligibility Life Insurance Leverage estate money
Shortens penalty period
Wealth replacement or enhancement

24. Estate Planning Essentials Wrap-Up
Why do we do it?
The family.
What can be done?
The rules.
How do we do it?
The secrets.

25. Estate Planning Essentials
Michael B. Cohen
Michael B. Cohen & Associates
12201 Merit Drive, Ste. 230
Dallas, Texas 75251