Practical Planning To Protect Yourself and Your Loved Ones With Tips for RVers By: Martin M. Shenkman, CPA, MBA, PFS, AEP, JD

CaveatsCaveats Nothing in these slides or any accompanying presentation is to be considered tax, legal, investment or other professional advice. The information is merely provided for educational purposes and no action should be taken without the individual consulting his or her own tax, estate, legal, financial, investment, insurance and other advisers. The hosts and sponsors of this program are NOT responsible for its content or accuracy

What is estate planning? Providing peace of mind for you and your loved ones on a broad range of planning issues Providing peace of mind for you and your loved ones on a broad range of planning issues An integrated plan that coordinates your investments, insurance, emergency and disability planning, and more while you are alive, disabled, retired and for your heirs An integrated plan that coordinates your investments, insurance, emergency and disability planning, and more while you are alive, disabled, retired and for your heirs You have to define what estate planning means to you You have to define what estate planning means to you

Overview of Estate Planning Documents You Should Consider Powers of Attorney Powers of Attorney Springing vs. not Springing vs. not General vs. Special General vs. Special Why standard forms arent suffice Why standard forms arent suffice Special provisions to include Special provisions to include Living Wills Living Wills What they are and why they are important What they are and why they are important Address specific health issues Address specific health issues Religious issues Religious issues Health Proxies selecting agent What powers to include Revocable Living Trusts Unique importance Boilerplate forms rarely address nuances needed What can and should you have

Introduction to the 12 Steps Every person is unique – it has to be your plan and address your challenges Every person is unique – it has to be your plan and address your challenges Reflect your personal wishes and circumstances Reflect your personal wishes and circumstances Create a strong foundation of documents, steps and a plan to build upon Create a strong foundation of documents, steps and a plan to build upon

Action Step: Set Personal Goals What concerns do you and your loved ones have that planning might address? What concerns do you and your loved ones have that planning might address? Are you on track with your retirement planning? What if you become disabled or die before retirement? Are you on track with your retirement planning? What if you become disabled or die before retirement? Who are you concerned about and who are you responsible for? Who are you concerned about and who are you responsible for? Are there any special personal, religious, financial, health, or other goals or concerns that might affect your planning? Are there any special personal, religious, financial, health, or other goals or concerns that might affect your planning?

Step 1: Organize Emergency, Financial, Information and Advisors Information Contact People (names, numbers) Contact People (names, numbers) Financial Information (account information) Financial Information (account information) Passwords and Security Codes Passwords and Security Codes Documents (Estate planning documents, legal documents, and more) Documents (Estate planning documents, legal documents, and more) Budget and Plan Budget and Plan

Investment and Financial Information is Critical to Organize and Communicate Title to Accounts Title to Accounts ITF, POD ITF, POD Joint Joint Other Other Beneficiary designations Beneficiary designations For insurance, retirement and other assets For insurance, retirement and other assets Watch brokerage account beneficiary designations Watch brokerage account beneficiary designations Account Management Account Management Consolidation and simplification Consolidation and simplification Are there excess accounts? Are there excess accounts? Who is giving you guidance? Who is giving you guidance? Automation Automation Organizing records Organizing records On line payments On line payments Set up on computer to facilitate planning Set up on computer to facilitate planning

Action Steps: Emergency Info #1 People forget and panic. Dont put off creating an emergency list People forget and panic. Dont put off creating an emergency list Type up a list on your computer so you can update it Type up a list on your computer so you can update it Disseminate the list to key people, ask for their help and tell them what they might need to do to help Disseminate the list to key people, ask for their help and tell them what they might need to do to help Each professional adviser should have the list in their file Each professional adviser should have the list in their file

Action Steps: Emergency Info #2 Organize the list by category (e.g., banking, religious adviser, professional advisers, family, neighbors) Organize the list by category (e.g., banking, religious adviser, professional advisers, family, neighbors) Give only the key facts someone will need to act in an emergency (person name, institution, insurance, office/home and cell number, , etc.) Give only the key facts someone will need to act in an emergency (person name, institution, insurance, office/home and cell number, , etc.) List info needed for emergency action (e.g., account number, policy number, etc.) List info needed for emergency action (e.g., account number, policy number, etc.)

RV TIP Step 1: Organize Emergency, Financial, Information and Advisors Information Rvers, or anyone who travels extensively, should take extra precautions to make sure information is available when needed Rvers, or anyone who travels extensively, should take extra precautions to make sure information is available when needed Consider a web based personal information locker and give a trusted person the info Consider a web based personal information locker and give a trusted person the info updated emergency info list to key people whenever there are major changes updated emergency info list to key people whenever there are major changes When determining where to keep accounts consider tax issues of residency/domicile When determining where to keep accounts consider tax issues of residency/domicile

Step 2: Designate a Person to Handle Financial and Legal Issues Agent (Successors) Agent (Successors) Compensation Compensation Begin date (Trigger) Begin date (Trigger) Powers (Authority) Powers (Authority) Durability (Disability) Durability (Disability)

Action Steps: Power of Attorney Choose a trusted agent and several successors Choose a trusted agent and several successors Hire a lawyer to draft powers that work for your personal and financial situation Hire a lawyer to draft powers that work for your personal and financial situation Discuss modifications to standard forms: Discuss modifications to standard forms: –Gift powers –Who can/should be supported Sign then distribute originals and/or copies, organize finances so your agent can act easily and safely Sign then distribute originals and/or copies, organize finances so your agent can act easily and safely Evaluate pros/cons of joint accounts versus power Evaluate pros/cons of joint accounts versus power

RV TIP Step 2: Power of Attorney Rvers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the residence of the agent they name (and where the assets are the agent will manage in an emergency) when making a selection Rvers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the residence of the agent they name (and where the assets are the agent will manage in an emergency) when making a selection Which state law should apply to your power Which state law should apply to your power Where should you sign your power Where should you sign your power Can you use a broad power that is more likely to be accepted in other states (e.g., 2 witnesses and a notary) Can you use a broad power that is more likely to be accepted in other states (e.g., 2 witnesses and a notary)

Step 3: Designate a Person to Make Health Care Decisions and Access Medical Records Agent (successors) Agent (successors) Powers (religion) Powers (religion) Signature (State law) Signature (State law) Move (state; facility) Move (state; facility)

Action Steps: Health Care Proxy Choose an agent and several successors who understand your wishes – e.g. religious preferences Choose an agent and several successors who understand your wishes – e.g. religious preferences Hire a lawyer to draft a health proxy that accomplishes your personal goals Hire a lawyer to draft a health proxy that accomplishes your personal goals Sign originals, distribute copies (or originals), be sure one is included in your medical chart Sign originals, distribute copies (or originals), be sure one is included in your medical chart Discuss your decisions with family, friends and agents Discuss your decisions with family, friends and agents

Step 4: Communicating Your Health Care Wishes

Action Steps: Living Will A living will can give the agent under your health proxy valuable guidance as to what you want done A living will can give the agent under your health proxy valuable guidance as to what you want done Review and consider personal wishes that should be reflected, e.g. religious observances, care instructions Review and consider personal wishes that should be reflected, e.g. religious observances, care instructions Sign a living will that communicates your personal decisions Sign a living will that communicates your personal decisions Review organ donations, burial and last rights, etc. Review organ donations, burial and last rights, etc. Sign original, distribute copies (or originals), be sure to include a copy in your medical chart Sign original, distribute copies (or originals), be sure to include a copy in your medical chart Discuss your decisions with family, friends and agents Discuss your decisions with family, friends and agents

RV TIP Step 4: Living Will Rvers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the impact of burial requests on state tax consequences – gruesome but true Rvers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the impact of burial requests on state tax consequences – gruesome but true Which state law may govern your health care decisions Which state law may govern your health care decisions Where should you sign your health proxy and living will Where should you sign your health proxy and living will Can you tailor the document so that it is more likely to be accepted in other states (e.g., 2 witnesses and a notary) Can you tailor the document so that it is more likely to be accepted in other states (e.g., 2 witnesses and a notary)

Step 5: Protect Your Minor Child With an Emergency Child Medical Form Disclose childs care/emergency information Disclose childs care/emergency information

Action Steps: Protecting Children Review all aspects of protecting your children with your advisers Review all aspects of protecting your children with your advisers Guardian and trusts under your will Guardian and trusts under your will Financial planning – 529 plans and other savings Financial planning – 529 plans and other savings Personal letter of instruction Personal letter of instruction Directions in your power of attorney Directions in your power of attorney

Step 6: Sign a Will

Action Steps: Sign a Will Wills are important: trusts to protect heirs and save tax; name executor and guardian; and more Wills are important: trusts to protect heirs and save tax; name executor and guardian; and more Write a separate personal letter of instruction Write a separate personal letter of instruction Consider trusts for minor children Consider trusts for minor children Include a donation to charities – send a message to your heirs that giving back is important Include a donation to charities – send a message to your heirs that giving back is important

RV TIP Step 6: Will Hire a lawyer in the state you claim is your domicile – this will support your position and get you better advice than trying to rely on an internet will Hire a lawyer in the state you claim is your domicile – this will support your position and get you better advice than trying to rely on an internet will Which state law should apply to your will Which state law should apply to your will Where should you sign your will Where should you sign your will If you have real estate or tangible property in a state other than where you maintain you are domiciled, that other states laws (and tax system) will apply If you have real estate or tangible property in a state other than where you maintain you are domiciled, that other states laws (and tax system) will apply

Step 7: Consider Creating a Revocable Living Trust Determine if you and your loved ones will benefit Determine if you and your loved ones will benefit Establish a personalized (not boilerplate) living trust Establish a personalized (not boilerplate) living trust Transfer assets to a trust during your lifetime Transfer assets to a trust during your lifetime Probate and intestacy Probate and intestacy Manage assets during disability or illness Manage assets during disability or illness

Action Steps: Revocable Living Trust See comments for Wills above and coordinate See comments for Wills above and coordinate Boilerplate Trusts designed to avoid probate wont accomplish other important goals Boilerplate Trusts designed to avoid probate wont accomplish other important goals Focus of document should be protecting you and your loved ones, and communicating your wishes Focus of document should be protecting you and your loved ones, and communicating your wishes Tailor trustee, business operation, and other personal provisions to meet your specific goals Tailor trustee, business operation, and other personal provisions to meet your specific goals

RV TIP Step 7: Living Trust Using a living trust can consolidate assets, minimize the likelihood of other states claiming that their law applies, and make management of your assets easier by a family member or friend who lives at a distance from where you are Using a living trust can consolidate assets, minimize the likelihood of other states claiming that their law applies, and make management of your assets easier by a family member or friend who lives at a distance from where you are Living trust alone may not suffice, you might need a limited liability company to own real estate or tangibles – consult a lawyer in the state where the assets are located in addition to the lawyer you hire in the state you claim is your domicile Living trust alone may not suffice, you might need a limited liability company to own real estate or tangibles – consult a lawyer in the state where the assets are located in addition to the lawyer you hire in the state you claim is your domicile

Step 8: Be Sure Your Insurance Coverage is in Order Property and casualty insurance Property and casualty insurance Long term coverage Long term coverage Disability income replacement Disability income replacement Life insurance Life insurance Liability Liability

Action Steps: Life Insurance Dont make assumptions – get life insurance coverage reviewed at least every 2-3 years Dont make assumptions – get life insurance coverage reviewed at least every 2-3 years Evaluate options – is your life insurance adequate? What goals do you have for life insurance? Evaluate options – is your life insurance adequate? What goals do you have for life insurance? Standard may not work – what objectives do you have for your insurance? Standard may not work – what objectives do you have for your insurance?

Action Steps: Other Insurance Do you have disability insurance (should you?) to replace income if you cannot work? Do you have disability insurance (should you?) to replace income if you cannot work? Long term care coverage, if obtainable and affordable, should be evaluated Long term care coverage, if obtainable and affordable, should be evaluated Property, casualty and liability coverage is often the planning step-child – make it a priority Property, casualty and liability coverage is often the planning step-child – make it a priority Be sure everyone that should be listed as insured is; be sure all info given to the insurance company is accurate (e.g., dont insure a rental property as if it were a residence since its cheaper) Be sure everyone that should be listed as insured is; be sure all info given to the insurance company is accurate (e.g., dont insure a rental property as if it were a residence since its cheaper)

Action Steps: Insurance Review Insurance decisions are not a one-shot deal – review all coverage that you have, and coverage you dont have but might need, at least every 2-3 years Insurance decisions are not a one-shot deal – review all coverage that you have, and coverage you dont have but might need, at least every 2-3 years Have your insurance agent prepare a chart of all coverage – eliminate duplication, evaluate deductibles and special coverage – often you can improve your protection and no or even lower cost Have your insurance agent prepare a chart of all coverage – eliminate duplication, evaluate deductibles and special coverage – often you can improve your protection and no or even lower cost

RV TIP Step 8: Insurance Not every insurance agent or company understands the nuances of how RVing may affect your coverage, be sure to explain the details Not every insurance agent or company understands the nuances of how RVing may affect your coverage, be sure to explain the details Be certain coverage keeps up with lifestyle changes – if you rent your home and fulltime RV, you need landlords insurance not homeowners coverage – the wrong coverage could prevent recovery and torpedo you tax planning Be certain coverage keeps up with lifestyle changes – if you rent your home and fulltime RV, you need landlords insurance not homeowners coverage – the wrong coverage could prevent recovery and torpedo you tax planning

Step 9: File Beneficiary Designations and Confirm Title to Accounts Standard provisions are not always adequate Standard provisions are not always adequate Coordinate with Revocable Trust Coordinate with Revocable Trust What powers should agent have What powers should agent have Give copies to your advisers Give copies to your advisers Update when banks merge Update when banks merge Revise when tax laws change Revise when tax laws change

Action Steps: Beneficiary Designations Consider all beneficiary designations: life insurance, pensions, IRAs, brokerage accounts and more Consider all beneficiary designations: life insurance, pensions, IRAs, brokerage accounts and more Obtain copies of the forms you filed and blank forms to facilitate revision Obtain copies of the forms you filed and blank forms to facilitate revision Be sure your advisers (CPA, lawyer, financial planner) all have copies of current beneficiary designations Be sure your advisers (CPA, lawyer, financial planner) all have copies of current beneficiary designations Have family members who name you as beneficiary consider a trust for you Have family members who name you as beneficiary consider a trust for you

Step 10: Give Back Demonstrate important values to heirs Demonstrate important values to heirs Inspire others to give and do good Inspire others to give and do good Estate planning is not only about the transmission of money, but about the transmission of values Estate planning is not only about the transmission of money, but about the transmission of values

Action Steps: To Give Back Make a donation (cash, stuff, insurance) Make a donation (cash, stuff, insurance) Include a bequest in your will – even small bequests can make a big statement Include a bequest in your will – even small bequests can make a big statement Write a heartfelt letter of instruction to heirs -- Inspire others Write a heartfelt letter of instruction to heirs -- Inspire others

Step 11: Communicate Educate and inform your fiduciaries Educate and inform your fiduciaries Express your wishes to your loved ones Express your wishes to your loved ones Preparation of beneficiaries Preparation of beneficiaries

Action Steps: Communicate Explain your finances, family issues, personal goals, and so forth to your advisers – tell all so they can help properly Explain your finances, family issues, personal goals, and so forth to your advisers – tell all so they can help properly Discuss with family, friends or others involved in your life what your wishes are Discuss with family, friends or others involved in your life what your wishes are Can those you expect to rely on really help? Have alternatives Can those you expect to rely on really help? Have alternatives Express your wishes in face to face meetings and then confirm key points in writing Express your wishes in face to face meetings and then confirm key points in writing

Step 12: Review, Revisit, Revise Nothing remains static Nothing remains static –Tax and property laws –Family situations –Assets and net worth –Health

Action Steps: Your Action Plan Write it down or it wont happen Write it down or it wont happen Set small goals – an hour a week to clean up all your financial, tax, estate and other matters – burdensome goals will never be kept Set small goals – an hour a week to clean up all your financial, tax, estate and other matters – burdensome goals will never be kept Tell others – including advisers Tell others – including advisers Get help and guidance to get started – an initial consultation with a CPA or other adviser can jump start the entire process Get help and guidance to get started – an initial consultation with a CPA or other adviser can jump start the entire process