Upload
kathlyn-hoover
View
222
Download
0
Tags:
Embed Size (px)
Citation preview
ESTATE PLANNINGESTATE PLANNINGWORKSHOPWORKSHOP
PRESENTED BYPRESENTED BYAllan M. Soto, Esq.Allan M. Soto, Esq.
7960 McFadden Avenue7960 McFadden AvenueWestminster, CA 92683Westminster, CA 92683
714-899-9671714-899-9671
WHAT IS AN ESTATEWHAT IS AN ESTATE??
PensionPensionPlanPlan
IRAsIRAs
LifeLifeInsuranceInsurance
BankBankAccountsAccounts
RealRealEstateEstate
BusinessBusinessInterestsInterests
OtherOtherAssetsAssets
StocksStocks
HomeHome
ProfitProfitSharingSharing
PlanPlan
ESTATE PLAN ESTATE PLAN COMPONENTSCOMPONENTS
WHY DO ESTATE PLANNING?WHY DO ESTATE PLANNING?
After Death• Control Who Receives Assets• Pay Less Court Fees, Taxes
At Incapacity• Control Assets, Medical Decisions
COMMON ESTATE PLANSCOMMON ESTATE PLANS
PLAN # 1PLAN # 1 WHAT IS A WILLWHAT IS A WILL
WHAT IS PROBATE?WHAT IS PROBATE?(ADMINISTRATION)(ADMINISTRATION)
GROUCHO MARXGROUCHO MARX
ADVANCE HEALTH CARE ADVANCE HEALTH CARE DIRECTIVEDIRECTIVE
PLAN #2PLAN #2 DOING NOTHINGDOING NOTHING
PLAN #3PLAN #3 JOINT TENANCY JOINT TENANCY
1. Only Postpones Probate2. Unintentional Disinheriting3. Incapacity = Court Interference4. Difficult To Remove Co-Owner5. Lawsuits6. Debts/Tax Problems
PLAN #4PLAN #4 GIVING AWAY YOUR GIVING AWAY YOUR ASSETSASSETS
TAX-FREE TAX-FREE GIFTSGIFTS
$14,000 to $28,000 Per Year Per Beneficiary
Unlimited Tuition, Medical Expenses
APPRECIATING ASSETS APPRECIATING ASSETS ARE BEST TO GIVE AWAYARE BEST TO GIVE AWAY
Removes Asset and Future Appreciation From Your Estate
Asset Keeps Your Cost Basis Recipient Pays Capital Gains Tax When
Sold
GIVE ASSETS TO CHARITYGIVE ASSETS TO CHARITY
•Reduces Estate TaxesReduces Estate Taxes
•Reduces Income TaxesReduces Income Taxes
•Does Not Affect Gift/Estate Does Not Affect Gift/Estate Tax ExemptionTax Exemption
•Lets You Decide Who Lets You Decide Who Your Money Will HelpYour Money Will Help
PLAN #5PLAN #5 BENIFICIARY BENIFICIARY TRANSFERTRANSFER
PLAN #6PLAN #6 REVOCABLE LIVING REVOCABLE LIVING TRUSTTRUST
Avoids Probate at DeathPrevents Court Control of Assets at IncapacityProvides Maximum PrivacyQuick Distribution of Assets to BeneficiariesAssets Can Stay in TrustPrevents Unintentional DisinheritingReduces or Eliminates Estate Taxes
LIVING TRUST VS. WILLLIVING TRUST VS. WILL
YOU KEEP CONTROLYOU KEEP CONTROLBuy/Sell Assets as BeforeChange/Cancel Any TimeTrust Contains Your Instructions
TESTAMENTARY TRUSTTESTAMENTARY TRUST
WHAT ARE TAX DEFERRED WHAT ARE TAX DEFERRED ACCOUNTSACCOUNTS
NEW IRA RULESNEW IRA RULES
UnderstandingUnderstanding
ESTATE TAXESESTATE TAXES
DETERMINING YOUR TAXABLE DETERMINING YOUR TAXABLE ESTATEESTATE
FederalFederalEstate TaxesEstate Taxes
40%40%
5,000,000
4,000,000
3,500,000
1,850,000
850,000
500,000
0
LIFE INSURANCE
BANK ACCOUNTS
INVESTMENTS
HOME
BUSINESS INTERESTS
IRA, OTHER RETIREMENT BENEFITS
PERSONAL PROPERTY
BENEFITSBENEFITS OF A CRTOF A CRT
Convert Appreciated Asset Into Lifetime Income
Pay No Capital Gains Tax
Reduce Income and Estate Taxes
Benefit Charity
SIX STEP SIX STEP PLAN OF PLAN OF ACTIONACTION
1. Inventory Assets/Debts
2. Write Down Your Objectives
3. Select a Professional to Help
4. Have Legal Documents Prepared
5. Put Plan into Action
6. Review and Change As Needed
Oth
erO
ther
Ass
ets
Ass
ets
PensionPensionPlanPlan
Lif
eIn
sura
nce
BusinessBusinessInterestsInterests
ProfitProfitSharingSharing
PlanPlan
BankBankAccountsAccounts
StocksStocks
Hom
eH
ome
IRA
sIR
As
Rea
l Est
ate
Rea
l Est
ate
SUCCESSFUL ESTATE SUCCESSFUL ESTATE PLANPLAN