ESTATE PLANNING INFORMATION
Calculate the value of your
estate:
LIFE INSURANCE (pay out value): ______________________
House & real estate (market values): _______________________
IRA's, 401K's, SEPs,: __________________________________
Bank accounts: _______________________________________
Mutual funds, stocks, bonds: _____________________________
Businesses: __________________________________________
Miscellaneous:
(collectibles, cars, jewelry,
inheritances) __________________
TOTAL GROSS ESTATE: _____________________________
Less mortgages, debts: _________________________________
TOTAL NET ESTATE: ________________________________
PROBATE:
1. WILLS DO NOT AVOID PROBATE!!
2. Probate is a court process which takes a minimum
of 7 months and usually a
year and a half to complete.
3. Attorney and executor fees for probate are calculated on a sliding scale
based on your gross estate (do NOT deduct mortgage):
First $100,000 at 4%
Next $100,000 at 3%
Next $800,000 at 2%
Remainder at 1% (up to $9 million)
Examples:
If your GROSS estate is $300,000 - the legal fees
are $9,000 for the attorney
and $9,000 for the executor for a total of $18,000.
If your GROSS estate is $600,000 - the legal fees
are $15,000 for the attorney
and 15,000 for the executor for a total of $30,000.
ESTATE TAXES:
1. These are federal taxes assessed on your net
estate - brackets are 34-50%
2. LIFE INSURANCE IS INCLUDED AT DEATH PAYOUT AMOUNTS
AND IS SUBJECT TO ESTATE TAXES
3. Currently, $5 million can pass to others estate-tax free. This is due to expire at the end of 2012.
COMPLETE ESTATE PLAN:
1. Living Trust (revocable) (can be Probate Avoidance
or ABC)
a) controls who gets your property and when
b) tells who is in charge of your property
c) completely avoids probate!
d) can minimize or eliminate estate tax
e) keeps property in trust for children until they
are adults
f) allows trustee to treat children differently
according to their needs
g) provides for care of your property if you are
disabled
h) provides for continuity in management of businesses
a) controls who gets your personal property
b) distributes remaining property to your trust
3. Community Property Status Agreement (married
couples only):
a) converts all jointly owned property
to community property for maximum tax savings
4. Nomination of Guardians (if you have minor
children):
a) names who you would like to care
for your minor children (physical custody - who they
will live with)
5. Durable Power of Attorney for Management:
a) names someone who can manage your finances
if you are incapacitated
b) can avoid conservatorship proceedings
(guardianship for adults)
6. Durable Power of Attorney for Health:
a) names someone to manage your medical/health
care decisions.
b) can authorize someone to "pull the plug",
donate organs, handle burial, etc.
c) can avoid conservatorship proceedings
Other:
1. Will with Contingent Trust
a) if your assets are small, you are young
and have minor children
b) allows discretionary treatment
with children
c) allows money to be held in trust
until children reach age you say
d) prevents guardianship proceedings
e) does not avoid probate, however
2. Irrevocable Trusts and Children's
Trusts:
a) if the combined NET estate
(with spouse's half) is over
$2 million
b) or if family business
involved
c) can be used to take
all insurance dollars
out
of both your and
your spouse's estate
if you need to provide for parents or handicapped
or special
needs child.
d) if you have assets which
are appreciating rapidly.
FEEL FREE TO CALL
NO CHARGE
FOR PHONE CALLS!!
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