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Prepare Advice From An Attorney. Name of Facilitator, Title, Organization Name of Attorney Legally Secure Your Financial Future: Organize, Communicate,

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Presentation on theme: "Prepare Advice From An Attorney. Name of Facilitator, Title, Organization Name of Attorney Legally Secure Your Financial Future: Organize, Communicate,"— Presentation transcript:

1 Prepare Advice From An Attorney

2 Name of Facilitator, Title, Organization Name of Attorney Legally Secure Your Financial Future: Organize, Communicate, Prepare Your university logo can be inserted here

3 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 3 Seminar Objectives Participants will: Recognize legal problems associated with estate planning Gain information to prevent or solve legal problems Develop a corrective plan of action to get their legal affairs in order Get generalized answers to legal questions

4 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 4 The Estate Planning Process Communicate Organize Prepare

5 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 5 Agenda  Wills  Probate  Trusts  How property is titled  Additional topics

6 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 6 Case Studies  Insert relevant case studies State Specific

7 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 7 “Everyone needs an estate plan. If you do nothing, the state will decide through state law how to dispose of your possessions after death.” S. Badenhop- Estate Planning: Wills and Probate in Kentucky

8 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 8 If You Were to Die Tomorrow…  Who would get my property?  Who would care for minor children/parents/spouse/partner?  Would the family business continue?  Would the estate be settled properly?  Would taxes, fees, and costs be held to a minimum?  Would a trust have been best for you?

9 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 9 Transferring Resources  Will – how you want your resources distributed  Gifts – prior to death can reduce the taxes on your estate  Trusts - a tool for transferring property

10 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 10 Wills & Probate Terms  Will - legal document that gives instructions to be carried out after your death  Probate - to prove or validate the will – process to carry out your wishes according to the will  Personal Representative (executor or executrix) – person who will be responsible for carrying out your wishes

11 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 11 Steps in Probate Overview of the process Personal Representative Probate CourtSubmits Will to Probate

12 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 12 Choose Your Personal Representative Carefully  Able to do the job  Willing  Convenience/proximity  Can keep peace among family members  Legal requirements

13 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 13 Duties of the Personal Representative  Proves the will in probate court  Collects & inventories property  Pays bills & collects debts  Files tax returns  Manages probate property  Defends or brings lawsuits, if needed  Distributes property

14 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 14 Why Have a Will?  Allows you to decide how your assets are distributed after death  Leaves more resources to distribute to heirs  Appoints a guardian of your choice for minor children – Important to name a second alternative guardian as backup

15 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 15 Dying Without a Will  Intestate - dying without a valid will  __________ laws would govern asset distribution  May pay more in taxes for large estates Insert your state State specific

16 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 16 Property Distribution Without a Will in Idaho With a Spouse  Separate property – ½ (if parents or issue*) (other ½ goes to issue* or, if no issue*, to parents) – 100% (if no parents or issue*)  Community property 100% *issue=children/grandchildren etc. State specific

17 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 17 Property Distribution Without a Will in Idaho No Spouse  Children  Parents (if no children)  Brothers & sisters or descendant of brothers and sisters only (if no children and no parents)  Grandparents or descendants of grandparents (if no children, no parents, no brothers or sister or descendants of brothers or sisters)  No relative – goes to the state. State specific

18 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 18 Non-titled Property Transfer in Idaho  Personal Effects Statement – Family heirlooms – Keepsakes State specific

19 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 19 A Valid Will Elements that must be present in a valid will  Age requirement – legal age  Individual has sound mind  Intended to transfer property  Written  Properly signed  Properly witnessed  Properly executed State Specific

20 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 20 Writing Your Own Will  A handwritten will is called a Holographic will  It must be signed by the writer – Frequently ambiguous or defective – Can cause delay, expense, and litigation  Consult an attorney State Specific

21 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 21 Self-Proving Affidavits  Self-proving affidavits eliminate the necessity of having witnesses go to court to testify that they witnessed the signing of a will  As a part of the will, the affidavit is valuable as proof of the will  Also valuable because witnesses are often dead or unavailable

22 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 22 Assets In A Will  A will can be simple or detailed – Some assets with beneficiaries pass outside a will  Assets with beneficiaries – Life insurance policies – Pension funds – IRA’s  Review beneficiary designations annually or when things change

23 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 23 Beneficiary Designations  Life Insurance  IRA’s (Individual Retirement Account)  POD (Pay-on-death)  TOD (Transfer-on-death)  Other “ Will ” your property to a person or institution after death

24 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 24 Changing A Will Change a will upon: – Marriage, remarriage, or divorce – Birth of a child – Move to another state – Acquisition of additional assets – Changes in federal and state laws

25 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 25 Effect of Divorce on Will  Add state specific laws, for example: A divorce in some states revokes the entire will while in another state it revokes only those provisions in the will in favor of the divorced spouse. Replace this with your state laws. You may need to add another slide to continue with state laws. State Specific

26 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 26 What is a Trust?  Legal arrangement  Property held by one person for benefit of others  Property managed by a trustee

27 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 27 Why Have a Trust?  Supplement for a will  Avoids probate  To provide structure for beneficiaries who might not be able to handle their own affairs

28 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 28 Types of Trusts  Living trust – Revocable or irrevocable  Testamentary trust – Revocable until death or incapacity

29 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 29 Should I Have a Living Trust? PRO:  Avoids Probate  Can administer property in different states with one document  Can manage affairs during life  Beneficiary may receive assets faster  Privacy Individual Decision

30 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 30 Should I Have a Living Trust? CON:  Expensive to draft – Expense of updates – Costs can outweigh the benefits  Not court supervised  On-going need to update Individual Decision

31 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 31 Estate Planning Scams!  Beware of aggressive sales pitches – Save thousands of dollars – Falsely inflate cost and burden of probate – Falsely imply product is sold by reputable group  Consult an attorney

32 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 32 Generic Will Kits and Forms  Perceived advantages: – Widely available on the internet, in bookstores, in office supply stores, etc. – May be simple to use and lower in cost than a private attorney

33 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 33 Generic Will Kits and Forms Warning: Have an attorney review any will you prepare yourself – Limited income consumers may utilize services such as legal aid

34 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 34 Disadvantages of Generic Will Kits and Forms  Some situations are more complicated and may require an attorney’s expertise  Materials condensed and simplified, leaving out details for unusual situations  Materials written to cover laws for entire nation, but cannot cover every jurisdiction  Laws constantly revised, and may require a different form or information

35 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 35 Joint Ownership: How Property is Titled Community Property Joint Tenancy with Rights of Survivorship Tenancy-in common Tenancy-by-entireties State Specific

36 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 36 Joint Ownership: Issues to Consider  If you want to sell  If one of the owners dies  If joint owner is sued  If a judgment is entered against the property  If joint owner is divorced

37 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 37 Estate Planning: Farmers and Family Business Owners  Family businesses often experience unique circumstances and issues  Can provide for the gradual transfer of a farm enterprise – minimizing higher estate taxes

38 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 38  May require a team effort including family, financial, farm management, tax, and legal expertise  Consult knowledgeable estate planning professionals Estate Planning: Farmers and Family Business Owners

39 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 39 Steps to Getting Started  Know what you have and where it is located  Know what you want to do with your property  Know how to provide for distribution of your property  Put your plan on paper My important Papers - will - birth certificate - passport -

40 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 40 Begin Planning  Plan for preparation of a will  Assess your estate planning needs  Review your present financial situation  Prepare an inventory of your assets and your liabilities  Organize information in folders or a three ring binder

41 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 41 Make a commitment now to locate and organize your important records and information, and to prepare a will. Please complete seminar written evaluation before leaving. Thank You

42 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 42 Legally Secure Your Financial Future Questions?

43 Legally Secure Your Financial Future: Organize, Communicate, Prepare Cooperative Extension 43 Credits This lesson was developed by the Legally Secure Your Financial Future: Organize, Communicate, Prepare team. This is a program of the Cooperative Extension Financial Security in Later Life national initiative. Information is available at


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