Estate management is about preserving the assets you’ve spent a lifetime building. It’s about protecting your spouse, children, or other heirs, and ensuring that your assets are distributed how and when you want them to be. Finally, estate management is about managing the amount of estate taxes that may be due after your death. There are some fundamental estate management principles that can enable you to manage your financial and personal affairs during your lifetime and distribute your wealth after death.
- 1. Estate MattersPrinciples of Preserving WealthPlease
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2. Financial Matters SeriesProvidenceWealthPartnersSecurities
and Investment Advisory services offered through Transamerica
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made without first complying with the states broker/dealer,
investment advisor, BD agent or IA rep requirements, or pursuantto
an applicable state exemption or exclusion. 3. Estate Management
ObjectivesgYour Lifetime rin e your financu nag D aiala M nd er
Your Death ft ibutepeA istrrsoyouDr nal we affairs alth 4. Click to
Play 5. Steinbrenners ApproachAggressive and OngoingSource: CCH Tax
Briefing, December 2010 6. Estate Management PyramidTacticsCritical
Documents How Estate Taxes Work 7. History of Estate
TaxesUndeclared War (1797 1802) Estate Laws(1775 - Present) Civil
War (1862 1870) SpanishAmerican War (1898 1902) Revenue Act of 1916
(1916 )Job Creation Act (2010 2012*) 1775
180018251850187519001925195019752000* The estate tax rates
established by The Economic Growth and Tax Relief Act of 2001
expired in 2010. A modified version was reinsti-tuted by the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation
Act of 2010, which is set to expire in 2012.Source: Field Guide,
2010 8. Two Formulas for Estate TaxesOfficial Formula ick Formula
Qu$7,500,000Gross value $7,500,000 Gross value-$5,000,000
Exemption$2,605,800Tentative tax $2,500,000Taxable amount -
$1,730,800 Unified creditx35%Tax rate$875,000 Estate tax$875,000
Estate tax This is a hypothetical example used for illustrative
purposes only. Estate tax laws will change. The current estate tax
law is scheduled to expire in 2012. 9. Who Has a Will?Source:
Forbes, March 1, 2010 10. A Will is the Cornerstone ofYour Estate
11. Probate is a Matter ofPublic Record Can you avoid probate? 12.
Critical Estate Management DocumentsHealthcare Documents: Fin
ancial Documents:Living Will Joint OwnershipPower of Attorney
Durable Power ofDurable Power ofAttorneyAttorney for Healthcare
Living Trust 13. Healthcare Documents Provides specific
instructions about your medical care. Living Will Authorizes
someone Power of Attorney to handle legal and financial decisions.
Durable Power of Attorney for Healthcare Authorizes someone to make
healthcare decisions on your behalf. 14. Healthcare: Deciding in
Advance30% of seniorsfaced crucial treatmentdecisions they were
unableto make for themselvesSource: The New England Journal of
Medicine, 2010 15. Financial Documents Enables you to pass an asset
on to a co-owner without probate.Joint Ownership Authorizes
someoneDurable Power of to make legal and financial decisions
onAttorney your behalf in case of incapacity.Living Trust Enables
the transfer of assets to heirs without going through probate. 16.
Gifting Assets Sample Year $ 13,000 to Recipient#1 $13,000 to
Recipient#2 $13,000 to Recipient#32011This is a hypothetical
example used for illustrative purposes only. Estate tax laws will
change. In 2011, the annual gift exclusion is$13,000 per
recipient.Source: Internal Revenue Service, 2011 17. Trusts Avoid
probate Not public record Effective management & distribution
Some control of beneficiaries Difficult to contest 18. How Does a
Trust Work? Trust TrustAssets 19. Life InsuranceIRS
LifeInsuranceAssets Irrevocable Trust AssetsIrrevocable Trust 20.
Crucial ConsiderationsWhat are yourObjecti ves? 1.2. 3. 4. 21.
Estate Management 22. Financial Matters Series Brandon Singer
[email protected] 11711 North Meridian Street Suite 110
Carmel, IN 46032 http://www.ProvidenceWealthPartners.com
