1. 1 National Risk Management Education Conference Phoenix, AZ April 17 & 18, 2007

2. 2 Marsha Goetting Ph.D., CFP ®, CFCS Professor & Extension Family Economics Specialist Department of Agricultural Economics & Economics

3. 3 Reveals interest level of audience Hint for time allocation for topics Topic Voting

4. 4 Special Request: Members of the Pre-conference Planning Committee

5. 5 Make your presentation!!!! Lively Interesting Exciting

6. 6 Don’t want to think about  Death  Dying

7. 7 Experiment Succession/Estate Planning Team Contest – Valuable prizes !!!

8. 8 3 - 5 people Divide into Groups

9. 9 First Decision Select Team Name –30 Seconds

10. 10 What I learned Opportunity to get acquainted Names reveal location etc.

11. 11 Second Decision – Select Team Runner Each time your team responds to a question òWrite team name & answer on sticky note John Baker Cyclones 50%

12. 12 Alternative approach Each time put sticky note on table when correct GoellerCornhuskers 50%

13. 13 Rewards –“Winning Team” Gets to select prizes at the end of the session

14. 14 –A word about professionals on the teams What I learned

15. 15 “ Who” Gets Your Property When You Die????

16. 16 Titled Real Property includes: Land Home

17. 17 Titled Personal Property includes: Savings & Checking Accounts Certificates of Deposits Motor Vehicles Stocks & Bonds

18. 18 Contract Law Beneficiary Designations –Life insurance –Annuities –IRAs –Keogh

19. 19 Life Insurance Bill Vere

20. 20 Beneficiary Bill has $100,000 life insurance policy Designates Vere –primary beneficiary

21. 21 Bill’s Will “I bequest all my life insurance proceeds to my son, Chris Shelton.”

22. 22 Who gets $100,000? Vere, wife? Chris, son?

23. 23 $100,000 Life Insurance Proceeds Vere Contractual arrangement – Designated Beneficiary

24. 24 What I learned About half of audiences guess incorrectly Most think a will controls

25. 25 Bob Parsons Divorced, former wife beneficiary Remarries, tells present wife she is beneficiary Writes will naming daughter as beneficiary

26. 26 Payable on Death Designation (POD) Accounts at financial institutions At death ownership passes to POD beneficiaries

27. 27 Transfers on Death (TOD) Registration Stocks Bonds Mutual funds

28. 28 What fraction (if any) will brother receive? No Written Will

29. 29 Team Question What share, if any, does Brother receive?

30. 30 What fraction (if any) will brother receive? No Written Will

31. 31 ? Right of Representation

32. 32 Married Couple John & Mary property titled John’s name only (sole proprietorship) No children

33. 33 Auto Accident John dies first Mary dies 3 days later

34. 34 Team Question Who receives the property?

35. 35 Who Receives? John dies first Mary dies 3 days later

36. 36 Whose relatives receive????? John dies first Mary dies 3rd Day John’s relatives receive property

37. 37 Montana Survival Requirement An heir must survive 120 hours Otherwise, treated as predeceasing the decedent

38. 38 What I learned About 90% of audiences miss this question

39. 39 Who Receives? John dies first Mary dies 6 days later

40. 40 Who receives??? John dies first Mary dies 6rd Day Mary’s relatives receive property

41. 41 Question: What fraction, if any does grandchild receive? ?

42. 42 Survivors : two children & grandchildren Right of Representation

43. 43 Survivors : one child & grandchildren Right of Representation

44. 44 Survivors : One child & grandchildren ? Right of Representation

45. 45 Survivors : Grandchildren

46. 46 Question What % of Americans die without a written will?

47. 47 7 out of 10 do not have a will

48. 48 “Being of sound mind I spent it all.” Here is your DAD’S will

49. 49 “To my son I leave the pleasure of earning a living. For 25 years he thought the pleasure was mine. He was mistaken.” Dad’s Will

50. 50 Heinrich Heine Made his wife sole beneficiary on the condition that she remarry because then “ there will be at least one man to regret my death ”

51. 51 Question What % of deceased persons’ estates paid a federal estate tax in 2003?

52. 52 Federal Estate Tax 2%

53. 53 Federal Estate Tax Exclusions & Credits

54. 54 Planning Technique Die in appropriate year!!!

55. 55 Marsh Trigger –Walk around listening –Address misconceptions

56. 56 Team Question Value of John’s gross estate for federal estate tax computation purposes? –$ 2,500,000 Living Trust –$ 100,000 Saving Bonds/POD Wife –$ 150,000 Joint Tenancy/Son –$ 250,000 Life Insurance Policy –$ 500,000 Tenancy in Common with spouse

57. 57 John’s Estate Value $3,500,000 Exemption 2007 $2,000,000 ***$690,500 due in tax

58. 58 Question What is the amount that can be gifted yearly without a federal gift tax?

59. 59 Annual Gifts $12,000 To as many people as you wish Tax free

60. 60 Gift-splitting Spouse may join in gift $24,000

61. 61 Question & Sticky note approach to teaching

62. 62 Rewards –Winning Team

63. 63 Marsha A. Goetting MSU Extension Family Economics Specialist goetting@montana.edu P. O. Box 172800 Montana State University Bozeman, MT 59717 406-994-5695