1. ESTATE PLANNING WORKSHOP PRESENTED BY Allan M. Soto, Esq. 7960 McFadden Avenue Westminster, CA 92683 714-899-9671

2. WHAT IS AN ESTATE ?

3. PensionPlan IRAs LifeInsurance BankAccounts RealEstate BusinessInterests OtherAssets Stocks Home ProfitSharingPlan ESTATE PLAN COMPONENTS

4. WHY DO ESTATE PLANNING? After Death Control Who Receives Assets Pay Less Court Fees, Taxes At Incapacity Control Assets, Medical Decisions

5. COMMON ESTATE PLANS

6. PLAN # 1 WHAT IS A WILL

7. WHAT IS PROBATE? (ADMINISTRATION)

9. GROUCHO MARX

10. ADVANCE HEALTH CARE DIRECTIVE

11. PLAN #2 DOING NOTHING

12. 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

13. PLAN #4 GIVING AWAY YOUR ASSETS

14. TAX-FREE GIFTS $14,000 to $28,000 Per Year Per Beneficiary Unlimited Tuition, Medical Expenses

15. 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

16. 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

17. PLAN #5 BENIFICIARY TRANSFER

18. 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

19. LIVING TRUST VS. WILL

20. YOU KEEP CONTROL Buy/Sell Assets as Before Change/Cancel Any Time Trust Contains Your Instructions

21. TESTAMENTARY TRUST

22. WHAT ARE TAX DEFERRED ACCOUNTS

23. NEW IRA RULES

24. Understanding ESTATE TAXES

25. DETERMINING YOUR TAXABLE ESTATE Federal Estate Taxes 40% 5,000,000 4,000,000 3,500,000 1,850,000 850,000 500,000 0 LIFE INSURANCE BANK ACCOUNTS INVESTMENTS HOME BUSINESS INTERESTS IRA, OTHER RETIREMENT BENEFITS PERSONAL PROPERTY

26. BENEFITS OF A CRT Convert Appreciated Asset Into Lifetime Income Pay No Capital Gains Tax Reduce Income and Estate Taxes Benefit Charity

27. 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

28. OtherAssets PensionPlan Life Insurance BusinessInterests ProfitSharingPlan BankAccounts Stocks Home IRAs Real Estate SUCCESSFUL ESTATE PLAN