basics of estate planning

LIFE and ESTATE LIFE and ESTATE PLANNINGPLANNING

In a NutshellIn a Nutshell

August 1, 2012August 1, 2012Tredway Lumsdaine & Doyle LLPTredway Lumsdaine & Doyle LLP

Monica Goel, Monica Goel, PartnerPartner

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WHAT IS AN ESTATEWHAT IS AN ESTATE??

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PensionPensionPlanPlan

IRAsIRAs

LifeLifeInsuranceInsurance

BankBankAccountsAccounts

RealRealEstateEstate

BusinessBusinessInterestsInterests

OtherOtherAssetsAssets

StocksStocks

HomeHome

ProfitProfitSharingSharing

PlanPlan

ESTATE PLAN ESTATE PLAN COMPONENTSCOMPONENTS

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WHY PLAN?WHY PLAN?

After Death• Control Who Receives Assets• Pay Minimum Legal Fees, Taxes

During Life• Control Assets, Medical Decisions in

Event of Incapacity.4

COMMON ESTATE PLANSCOMMON ESTATE PLANS

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PLAN # 1PLAN # 1 WHAT IS A WILLWHAT IS A WILL

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WILLS AND INCAPACITYWILLS AND INCAPACITY

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WILLS AND DURABLE POWER WILLS AND DURABLE POWER OF ATTORNEYOF ATTORNEY

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Advanced Health Care DirectiveAdvanced Health Care Directive

It’s estimated that four out of five Americans do not have a living will or any other written health care or end-of-life directive to help their families make decisions for them if they become incapacitated. Health care and end-of-life advance planning, if done right, accomplishes four things:

Ensures that the person you want to speak for you has the legal authority to do so

Helps ensure that your wishes about your health care are known and respected

Avoids unnecessary, intrusive, and costly medical treatment at the point you not longer want it

Reduces the suffering experienced by your loved ones, because they will have your guidance

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PLAN #2PLAN #2 DOING NOTHINGDOING NOTHING

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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

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PLAN #4PLAN #4 GIVING AWAY YOUR GIVING AWAY YOUR ASSETSASSETS

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PLAN #5PLAN #5 BENEFICIARY BENEFICIARY TRANSFERTRANSFER

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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

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YOU KEEP CONTROLYOU KEEP CONTROLBuy/Sell Assets as BeforeChange/Cancel Any TimeTrust Contains Your Instructions

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EntitlementsEntitlementsMediCal LTC

Provides nursing facility benefits

Advantage-provides access and minimizes monthly nursing facility expenses to a share of income.

Disadvantages-doesn’t cover Home Care in most counties, does not provide a private room, subjects the family to Estate Recovery Mandate.

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SIX STEP SIX STEP PLAN OF PLAN OF ACTIONACTION

1. Inventory Assets/Debts

2. Write Down Your Objectives. Before and After You Die.

3. Select a Professional to Help

4. Have Legal Documents Prepared

5. Put Plan into Action

6. Review and Change As Needed

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Oth

erO

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Ass

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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

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Schedule your FREE initial consultation today!Schedule your FREE initial consultation today!

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Monica GoelTredway Lumsdaine & Doyle LLP

8141 E. 2nd Street, Suite 500Downey, CA 90241

562-923-0971Connect with us: Scan to visit our website

EntitlementsEntitlementsMedicare

-Provides healthcare benefits for people age 65 and above and those under age 65 on social security disability.

Advantage- provides hospitalization, covers doctors charges, skilled nursing facility.

Limitations-has sizable deductibles and co-payments, does not cover prescription drugs or custodial care.

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