2.  The Purpose of Planning
 Obstacles: Probate &Taxes
 Basic Estate Planning 101
 Complex Estate Planning 101
 Asset Protection Planning 101
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

3.  …to manage assets during life;
 …to manage responsibilities and
assets during incapacity; and
 …to properly care for and
distribute estate upon death.
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

4.  Probate
◦ …a court-supervised process to transfer
assets from a deceased individual to a
beneficiary.
◦ Extremely expensive.
◦ Extremely complicated / lengthy.
 Case Studies:
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

5.  Conservatorship / Guardianship
Hearings (Probate Court)
◦ Without an estate plan, a court will
determine if you are incapacitated, and if
so, who is to care for you and your
children.
 Case Study:
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

6.  Taxes
◦ Estate Taxes
 …approximately 50% tax on net worth upon death.
◦ Capital Gains Taxes
 …tax on profit upon sale of property.
◦ Income Taxes
 …easily reduced through advanced planning
opportunities.
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

7.  Keep The Goals, and The
Obstacles in Mind
 Estate Planning Options
◦ …do nothing at all.
◦ …create a Will.
◦ …own property jointly with another.
◦ …create a living trust / comprehensive estate
planning package.
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

8.  Doing Nothing at All
◦ No tax planning opportunities;
◦ No protection upon incapacity;
◦ No asset protection after death;
◦ No decision on how to distribute estate; and
◦ Full probate (with associated fees and delays).
 Create a Will
◦ Same results as if doing nothing at all,
EXCEPT you can choose how estate is
distributed. That is all.
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

9.  Jointly Owning Property
◦ No tax planning opportunities;
◦ No protection upon incapacity;
◦ No asset protection after death; and
◦ Increased liability; BUT
◦ No probate (which is good).
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

10.  Living Trust / Comprehensive
Estate Plan
◦ Protection upon incapacity;
◦ Asset protection capabilities (limited);
◦ Ability to appoint individuals to act as agents
upon incapacity and death;
◦ Complete authority to plan distribution.
◦ No probate.
◦ (SOLVES ALL OF THE ISSUES RELATING TO
ESTATE PLANNING)
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

11.  How a Comprehensive Plan
Operates
◦ …Living Trust is at the core;
 Separate entity to hold assets that survives your incapacity and
death, upon which designated successors take over, and our
bound to specified terms and conditions;
◦ …Powers of Attorney / Advance Healthcare
Directives;
 Documents to appoint agents to act on your behalf.
◦ …Pourover Will
 Document which appoints guardians for your children (among
other things).
◦ …Ancillary Documents (Supportive and Extra
Protection).
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

12.  Specific Situations
◦ …special needs beneficiaries;
◦ …business interests; and
◦ …investment properties, etc.
 The Estate Tax
◦ …50% tax on one’s net worth upon death.
 $1,000,000 exclusion
◦ …many vehicles exist which can structure
assets in a manner which allows them to not
meet the definition of “net worth.”
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101

13.  What Does Asset Protection Do?
◦ The effect is to essentially make it difficult for
creditors to come after the client.
◦ Most plans take jurisdiction out of state or
country, making it expensive for creditors.
◦ EXCEPTION: Creating an LLC or Corp. is almost
always a sure bet (in limited circumstances).
 Fraudulent Transfer Rule
◦ …cannot engage in asset protection for the
sole purpose of defrauding creditors.
◦ …can do it ahead of time to protect yourself.
-Purpose of
Planning
-Probate
and Taxes
-Basic
Estate
Planning
101
-Complex
Planning
101
-Asset
Protection
101