Oast & Hook, P.C. 1

Estate and Financial Planning

Andrew H. Hook, CELAOast & Hook, P.C.

Offices in Virginia Beach and Portsmouthwww.oasthook.comTel: 757-399-7506Fax: 757-397-1267

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Proposition

Prior planning improves performance and results.

Failing to plan is planning to fail!

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Estate Planning Concerns

• Disability Planning• Running Out of Money• Long Term Care Expenses• Avoiding Family Disputes• Asset Protection• Tax Planning• Disposition of Estate• Probate Avoidance

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Disability Planning

• Guardianship and Conservatorship (Default Rule)

• Joint Accounts

• Trust Agreements

• Durable Power of Attorney

• Advance Medical Directive

• Long-term Care Planning

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Savings and Investment Planning• Put your investment and estate planning goals in

writing.

• Do not rely on your emotions.

• Save. Save. Save.

• Do not speculate.

• Do not invest primarily for “tax reasons.”

• Do not consider your home an investment.

• Use asset allocation to reduce risk and increase returns.

• Monitor investment performance.

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Payment of Long Term Care Expenses

• Private Payment

• Veterans Benefits

• Long Term Care Insurance

• Medicaid

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Avoid Family Disputes

• Who will serve as the Agent, Trustee, or Personal Representative?– Empowered child vs. the subservient child– Multiple family groups

• Division of assets among family members– Tangible personal property– Family business– Real property

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Tax Planning

• Minimum withdrawal rules from retirement plans (MDR)

• Taxation of social security benefits• Deduction of long term care expenses• Sale of home• Estate Taxes• Probate Taxes

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Disposition of Estate

• Intestate Succession (Default Rule)

• Joint Ownership with Right of Survivorship

• Payable on Death or Transfer on Death

• Designation of Beneficiary

• Last Will and Testament

• Trusts

• Charitable Gifts

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Asset Protection

• Creditors– Tenancy by the Entirety– Spendthrift Trust– Family Limited Partnership

• Blended Families– In-laws and – former in-laws

• Business Succession

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Probate Avoidance

• Probate is the process by which a court determines that an instrument is a will.

• The term “probate” also is used to refer to a court supervised estate administration.

• Probate involves time, expense and effort.• Probate avoidance devices include

designations of beneficiary, joint ownership WROS, and trusts.

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Estate Planning Process

• Gather Information

• Seek Professional Advice

• Determine Objectives

• Review Existing Estate Plan

• Prepare Revised Estate Planning Documents

• Implement Revised Estate Plan

• Regularly Review Estate Plan

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Conclusion

You can prepare a much better estate plan for you and your family than the default rules

given to you by the state.

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• Medicaid Asset Protection Planning• Special Needs Trusts: Third party, d(4)(a) & d(4)(c)• Estate Planning• Estate Planning for Parents of Children with Special Needs• Tax Planning and Return Preparation• Estate and Trust Administration• Guardianships/Conservatorships• Care Management and Bill Paying• Fiduciary services

Offices in Virginia Beach and PortsmouthTel: 757-399-7506www.oasthook.com