Post on 05-Apr-2018
transcript
8/2/2019 Estate Planning- De Pere at Dawn
1/11
DE PERE AT DAWNEstate Planning 101:How to Plan for the Unthinkable
Richard E. Nell
Nell & Associates, S.C.
April 18, 2012
8/2/2019 Estate Planning- De Pere at Dawn
2/11
Standard Estate Plans
Wills
Its never a bad idea to have a will
Identify Beneficiaries, how estate is divided
Specify ages of distribution, if applicable
Name an Executor/Personal Representative
8/2/2019 Estate Planning- De Pere at Dawn
3/11
Standard Estate Plans
Durable Power of Attorney for Healthcare
Appoints an agent to make medical decisions on
your behalf
Effective only after 2 physicians determine
incapacity
Can be as specific or general as you wish
Need for guardianship can arise without ahealthcare POA
8/2/2019 Estate Planning- De Pere at Dawn
4/11
Standard Estate Plans
Durable Power of Attorney for Finances &
Property
Appoints an agent to manage all things financial and
real estate
Can be designed to be effective immediately or
effective upon incapacity
Need for guardianship arises withouta financial POA
8/2/2019 Estate Planning- De Pere at Dawn
5/11
Probate
The legal process by which title to property istransferred to heirs by a court
Probate Assets: assets held in a decedents namealone with no beneficiary or P.O.D. designation
Non Probate Assets: assets transferred by terms ofdocument creating non-probate status
Admitting a Will to Probate A Will does not avoid the need for probate, but rather gives
direction to the probate court The Will must be probated to be effective
Beneficiary designations and asset titling trump Willlanguage
8/2/2019 Estate Planning- De Pere at Dawn
6/11
Probate
Alternative forms of Court Administration for
Probate Estates less than $50,000
Transfer by Affidavit
Summary Assignment
Summary Settlement
Costs of Probateshould it be avoided?
8/2/2019 Estate Planning- De Pere at Dawn
7/11
Trusts in Estate Planning
Living TrustsAssets transferred to trust during life of grantor
Irrevocable: generally can reduce estate taxes andindividual income taxes (not always a good idea)
Revocable: generally do not enable grantor toavoid estate taxes or income taxes
Testamentary Trusts
Funded upon death of grantor Common purposes are to minimize
estate taxes and provide for long-term
distributions
8/2/2019 Estate Planning- De Pere at Dawn
8/11
Estate Taxes
Federal Estate Taxes
$5,120,000 estate exemption
2013$1,000,000 taxed at 55%
The Gross Estate 2031 IRCthe valueof all property, real or personal, tangible
or intangible, wherever situated.
Includes probate and non-probated assets; 2033 IRCthe values
of all property in which the decedent had an interest at the time of
his or her death.
Wisconsin Estate Taxes
Wisconsin does not have an estate tax, inheritance tax or
tax paid by a recipient of a gift at this time
8/2/2019 Estate Planning- De Pere at Dawn
9/11
Estate Taxes
Taking Advantage of the Unlimited MaritalDeduction
Unlimited marital deduction on property passing
outright to citizen spouse or certain types of trustsResults in $0 estate taxes due on first death, but
wastes estate tax exemption of 1st spouse to pass
Estate tax exemption of 1st spouse to pass can be
maximized through use of bequests which do notquality for marital deduction (outright to children;to credit shelter trust)
8/2/2019 Estate Planning- De Pere at Dawn
10/11
8/2/2019 Estate Planning- De Pere at Dawn
11/11
Estate Planning Wrap-Up
Proper Estate Planning will maximize bequests
to family, friends, pets and
charitable organizations.
Poor Estate Planning will maximize taxes tothe state and federal government.