Presentation on theme: "The Estate Planning Basics"— Presentation transcript:
1 The Estate Planning Basics What You Should KnowBefore You See An AttorneyLeah R. GilbertPluto Legal, PLLC, Attorney at Law1
2 About Us Memberships and Organizations Member of Wealth Counsel Member of the National Academy of Elder Law AttorneysMember of the Hennepin County Medical Assistance CommitteeMember MN State Bar Association
3 PLUTO LEGAL, PLLC Who We Are: Main Office in Tyler, MNTwo attorneysLisa K. Pluto: Managing attorney and OwnerDodge Center, MNLeah R. Gilbert: Associate AttorneyChaska, MNSeven Support Staffincluding a Licensed Social Worker, paralegal, Medicaid / Elderly Waiver expertise, funding and probate support
4 Proper Estate Planning Caring for loved ones as if you were still thereWith your resourcesWith your loveWith your wisdom
5 The Estate Planning Process EducationDesignDrafting DocumentsImplementation
6 Common Planning Techniques Owning property jointlyDesignating a beneficiarySigning a will
7 Wills Can Fall Short of Estate Planning Goals Won’t provide for your disabilityWon’t necessarily give what you have:to whom you wantthe way you wantwhen you wantCertainly won’t avoid probate
8 Traditional Estate Planning Gross EstateNon-probate transfersProperty titled in your nameJointly owned propertyLife InsuranceIRA’s401(k)’sAnnuitiesProbateProcessYour WillPlanned Distributions
10 The Living Trust It plans for your disability It plans for your loved onesContains your loving instructionsIts private and confidentialReflects your hopes, fears, dreams and valuesIts good in every state
11 How to Distribute to Your Heirs No protectionCreditor protectionPredator protectionSelf protectionEstate tax protectionOutrightIn Trust
12 Basic Estate and Gift Tax Rules It’s a tax on everythingEstate and gift taxes begin at 40%$14,000 annual exclusion*Unlimited marital deduction$5,250,000 unified credit (Federal)MN limit of $1,000,000**Unlimited charitable deductionFederal = Portable; MN State = Use it or Lose it* Indexed for inflation* * Small Family Businesses and Family Farms may get up to $4MM
13 Estate Plans Revocable Living Trust Will Transfer on Death Deed Trust, Pour Over-Will, HCD, POA, funding assistanceWillWill, HCD, POATransfer on Death DeedTODD, HCD, POA
14 The Most Overlooked Reasons to Create an Estate Plan: Mental DisabilityPhysical Disability
15 Disability Planning Guardianship / Conservatorship Legal Proceeding to Establish Authority for One Individual to Act on Behalf of Another
16 Powers of AttorneyTwo Types:Statutory Short FormCommon LawP.O.A.
17 Statutory Short Form Power of Attorney Powers of AttorneyStatutory Short Form Power of AttorneyIt is a FORM!No InstructionsEffective ImmediatelyBlank CheckNo Reporting RequirementsNo requirement for Others to Accept!Statutory Limitations for MedicalAssistance PlansLook up “loss of control” in dictionary, and you’ll see the General Durable Power of Attorney!
18 Common Law Power of Attorney Powers of AttorneyCommon Law Power of AttorneyDrafted to Individual NeedsGives InstructionsChoice on When POA Takes EffectHas Reporting RequirementsLook up “loss of control” in dictionary, and you’ll see the General Durable Power of Attorney!
19 Health Care Directives Combines…..Health Care Power of Attorney and Living WillYou choose the Health Care AgentsYou give them instructions and directions regarding your health care wishes
20 Health Care Directives Legal Requirements:be in writingbe datedstate the principal's name (The principal is the person filling out the health care directive)be executed by a principal with capacity to do so with the signature of the principal or with the signature of another person authorized by the principal to sign on behalf of the principalcontain verification of the principal's signature or the signature of the person authorized by the principal to sign on behalf of the principal, either by a notary public or by witnesses as provided under this chapter; andinclude a health care instruction, a health care power of attorney, or both.
21 Health Care Directives Allows One to Make Decisions RegardingOrgan DonationTerminal Care (Living Will)Burial ServicesDNR, DNI, etc.ANDGuardian DesignationHIPAA Designee