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Sun City West, AZ Estate Planning 101 Law Office of Dennis Caufield, LLC.

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Sun City West, AZ Estate Planning 101 Law Office of Dennis Caufield, LLC.

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Presentation on theme: "Sun City West, AZ Estate Planning 101 Law Office of Dennis Caufield, LLC."— Presentation transcript:

1 Sun City West, AZ Estate Planning 101 Law Office of Dennis Caufield, LLC

2 Insurance Policies What is an Estate? Cash Stocks Jewelry IRAs Investments Your Home Income Properties Automobiles Antiques Bonds &

3 3 Basic Keys to Estate Planning Maintaining control during incapacity Quick & cost effective wealth transfer at death Protecting beneficiaries from themselves & others

4 When Should You Plan Your Estate? Today Mental Incapacity Catastrophic Illness Death Your Planning Opportunity Living Trust Will Living Will Powers of Attorney

5 2 Platforms for Planning Will based plan Trust based plan

6 Beneficiary(ies) Will Based Plan Properly titled assets

7 What is a Trust? a fiduciary relationship with respect to property, subjecting the person by whom the title to the property is held to equitable duties to deal with the property for the benefit of another person, which arises as a result of a manifestation of an intention to create it. Restatement Second of Trust §2

8 What is a Trust? Grantor Trustee(s) Beneficiary(ies)

9 #1 Mistake Failing to Address Health Care Decisions

10 Online Storage of Healthcare Documents Free Service Offered by the Arizona Secretary of State Visit

11 #2 Mistake Failing to Plan for HIPAA (Access to Medical Records)

12 #3 Mistake No plan to control financial & property matters during incapacity

13 No Wealth Transfer Strategy #4 Mistake

14 Intestacy James Dean : – Died at age 24 without a will – Entire estate, including licensing fees, passed to his father, who had abandoned him as a child. – Licensing fees generate $1 - $3M annually.

15 #5 Mistake Failure to Understand & Plan For Death Taxes

16 Federal Estate Tax YEAREXCL. AMT. TOP TAX RATE 2001$675,00055% $1,000, % $1,500, % $2,000, % 2009$3,500,00045% 2010Full RepealN/A $5,000,00035% 2013-$5,250,00040%

17 #6 Mistake Thinking Children – Minor And Adult – Dont Need Inheritance Protection

18 What if your child … Suffers a divorce Suffers a divorce Experiences creditor problems Experiences creditor problems Gets sued Gets sued

19 Inheritance Protection Trust Adult child is trustee of his trust Adult child is trustee of his trust Has significant access to income and principal Has significant access to income and principal Can ultimately consume it all -- no strings attached Can ultimately consume it all -- no strings attached

20 Predators, Spend-thrifts The Woolworth Misfortune – Granddaughter of Woolworth founder, Barbara Hutton – At age 10, she inherited $25 Million in trust. – Under the terms of the Trust, Barbara received the entire Trust ($50 million) outright with no strings attached at the age of 21. – 46 Years and 7 husbands later, she died at age 66 with a mere $3,000. – Years of relentless exploitation, spousal abuse, drug addiction and outrageous, uncontrolled spending.

21 #7 Mistake Failing to Transfer Values

22 #8 Mistake Not Preserving Tax Deferral Benefits of Retirement Plans

23 HUGE LOSS When Your IRA is Cashed-out Early and Spent! Assumes $100,000 at age 40 earning 6% and Child fully withdraws and must pay the tax due A difference of over $ 400,000 on a $100,000 IRA!

24 Still a BIG LOSS When Your IRA is Cashed-out Early and Invested! Assumes $100,000 at age 40 earning 6% and Child fully withdraws and must pay the tax due A difference of over $ 300,000 on a $100,000 IRA!

25 #9 Mistake Failing to Organize and Consolidate

26 #10 Mistake In 2nd marriages, failing to protect your spouse, and your kids

27 #11 Mistake Failing to Plan for Tangible Personal Property

28 #12 Mistake Failing to Name a Guardian for Minor or Incapacitated Children

29 #13 Mistake Believing Estate Planning is a One-Time Event

30 Where Do You Go From Here?

31 Without counsel plans go wrong, but with many advisers they succeed." Proverbs 15:22 Free Initial Consultation Law Office of Dennis Caufield, LLC Plan Today for a Secure Tomorrow


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