Stein Wealth Advisors Financial Services offered through Mid Atlantic Financial Management, Inc.

Joshua R. Stein & Melissa J. Stein

CRPC®, CFP

Financial Advisor

Securities offered through Mid Atlantic Capital Corporation (MACC), member FINRA/SIPC. Advisory services offered through Mid Atlantic Financial Management, Inc. (MAFM), a registered investment adviser. Trust services offered through Mid Atlantic Trust Company (MATC), a non-depository trust company.

Stein Wealth Advisors, LLC is not a registered entity or a subsidiary or control affiliate of MACC, MAFM or MATC.

Getting Your Ducks in a Row:

Estate Planning & Organization

Overview

6 STEPS FOR GETTING YOUR DUCKS IN A ROW

• STEP 1: Establish Estate & Long Term Care Goals

• STEP 2: Complete Appropriate Legal Documents

• STEP 3: Verify Account Titling & Beneficiary Designations

• STEP 4: Document Organization & Storage

• STEP 5: Communicate to Family

• STEP 6: Periodically Review Your Plan

STEP 1: Create Estate &

Long Term Care Goals

What is Important to you?

• Leaving an inheritance

• Tax minimization

• Control of assets

• Charitable giving

• Gifting/College gifting

• Long Term Care wishes

• Who are your heirs? – A family map

• Who will help you make decisions?

STEP 2: Complete Legal Documents

– Will

• Choosing Executor/Trustee/Custodian

– Living Will

– Power of Attorney

– Trusts

• Revocable vs. Irrevocable

• Charitable Trusts

Common Misconceptions

– All Inherited Assets are Not Equal

• Taxation of different investments – IRA vs. Non-Qualified Assets

• How will beneficiaries use the asset? – Leaving a home or other properties

• List of Special Bequests – Jewelry and other valuables may not be accounted for in the

will

» It is the responsibility of the Executor to distribute these accordingly

Common Misconceptions

– Estate Taxes • Federal

– Utilizing the marital deduction

• State (Varies State by State)

• For PA – 0% on transfers to a surviving spouse

– 4.5% on transfers to direct descendants and lineal heirs (Children, Parents)

– 12% on transfers to siblings

– 15% on transfers to other heirs, except charitable organizations

– Probate (varies state by state)

Pre-Paid Funeral Arrangements

– Important Things to Consider • What happens to the money you've prepaid? States have

different requirements for handling funds • What happens to the interest income on money that is

prepaid and put into a trust account? • Are you protected if the firm you dealt with goes out of

business? • Can you cancel the contract and get a full refund if you

change your mind? • What happens if you move to a different area or die while

away from home? • Can you use existing life insurance? • Using POD/TOD funds to maintain control of the money

STEP 3: Verify Account Titling & Beneficiaries

– Confirm Beneficiaries

• Assets and Life Insurance

– Ownership vs. Beneficiary vs. Will

– Non-Children Beneficiaries

– Transfer on Death & Payable on Death

Ownership

Beneficiary

Will

STEP 4: Organization & Storage

Making Things Easy to Find

• Contact/Personal Information

• Assets/Liabilities (Business Assets/Liabilities if needed)

• Important Documents

• Basic Medical History

• Life Insurance and other Insurance documents

• Virtual Life (cell phones, online access etc.)

• List of Important contacts

• Personal Wishes/Arrangements

STEP 5: Communication With Family

• 70% of estates fail in the transition to the next generation (1)

• 60% of the time family wealth evaporates after being passed to heirs because of a breakdown in communication (1)

• 75% of children have not met their parents’ advisors (2)

• 69% of investors have not discussed family wealth plans with their advisors even though 94% of those who had the conversation found it helpful (2)

(1) Institute for Preparing Heirs, “The Future of Estate Planning, June 2010.

(2) MFS Investment Sentiments Insights, May 2013

Develop a Family Financial Map

– Establish a Point Person

• Typically the Executor

– Communicate Often and Early

– Be Clear About Your Wishes and Plan

– Take Your Time

– Introduce Your Financial Advisor, Attorney and Other Professionals

STEP 6: Review Your Plan

– Periodically Review Your Plan

• Laws Change

• Relationships Change

• Accounts Move

• Personal Financial Situations Change

Ducks In A Row

QUESTIONS?