the estate planning basics

The Estate Planning Basics

Leah R. Gilbert Pluto Legal, PLLC, Attorney at Law

What You Should KnowBefore You See An Attorney

About Us

Memberships and Organizations Member of Wealth Counsel Member of the National Academy of Elder

Law Attorneys Member of the Hennepin County Medical

Assistance Committee Member MN State Bar Association

PLUTO LEGAL, PLLCWho We Are:

Main Office in Tyler, MN Two attorneys

Lisa K. Pluto: Managing attorney and Owner Dodge Center, MN

Leah R. Gilbert: Associate Attorney Chaska, MN

Seven Support Staff including a Licensed Social Worker, paralegal,

Medicaid / Elderly Waiver expertise, funding and probate support

Proper Estate Planning

Caring for loved ones as if you were still there

• With your resources

• With your love

• With your wisdom

The Estate Planning Process

Education Design

Drafting Documents

Implementation

Common Planning Techniques

Owning property jointly

Designating a

beneficiary

Signing a will

Wills Can Fall Short of Estate Planning Goals

Won’t provide for your disability

Won’t necessarily give what you have: to whom you want

the way you want

when you want

Certainly won’t avoid probate

Traditional Estate Planning

Gross Estate

Your Will

Non-probate transfers

Jointly owned propertyLife InsuranceIRA’s401(k)’sAnnuities

Planned Distributions

Property titled in your name

ProbateProcess

Last Will of Jackie K. Onassis

The Living Trust

It plans for your disability

It plans for your loved ones

Contains your loving instructions

Its private and confidential

Reflects your hopes, fears, dreams and values

Its good in every state

How to Distribute to Your Heirs

• No protection

• Creditor protection• Predator protection• Self protection• Estate tax protection

• Outright

• In Trust

Basic Estate and Gift Tax Rules

It’s a tax on everything Estate and gift taxes begin at 40% $14,000 annual exclusion* Unlimited marital deduction $5,250,000 unified credit (Federal) MN limit of $1,000,000** Unlimited charitable deduction Federal = Portable; MN State = Use it or

Lose it

* Indexed for inflation * * Small Family Businesses and Family Farms may get up to $4MM

Estate Plans

Revocable Living Trust Trust, Pour Over-Will, HCD, POA, funding

assistance Will

Will, HCD, POA Transfer on Death Deed

TODD, HCD, POA

The Most Overlooked Reasons to Create an Estate Plan:

Mental Disability Physical Disability

Disability PlanningGuardianship / Conservatorship

Legal Proceeding to Establish Authority for One Individual to Act on Behalf of Another

Powers of Attorney

Two Types: Statutory Short Form Common Law P.O.A.

Powers of Attorney

Statutory Short Form Power of Attorney• It is a FORM! • No Instructions• Effective Immediately• Blank Check• No Reporting Requirements• No requirement for Others to Accept!• Statutory Limitations for Medical Assistance Plans

Powers of Attorney

Common Law Power of Attorney• Drafted to Individual Needs• Gives Instructions• Choice on When POA Takes Effect• Has Reporting Requirements

Health Care Directives

Combines…..

Health Care Power of Attorney and Living WillYou choose the Health Care AgentsYou give them instructions and

directions regarding your health care wishes

Health Care DirectivesLegal Requirements: be in writing be dated state the principal's name (The principal is the

person filling out the health care directive) be executed by a principal with capacity to do so

with the signature of the principal or with the signature of another person authorized by the principal to sign on behalf of the principal

contain verification of the principal's signature or the signature of the person authorized by the principal to sign on behalf of the principal, either by a notary public or by witnesses as provided under this chapter; and

include a health care instruction, a health care power of attorney, or both.

Health Care Directives

Allows One to Make Decisions RegardingOrgan DonationTerminal Care (Living Will)Burial ServicesDNR, DNI, etc.

ANDGuardian DesignationHIPAA Designee

The Next Step

Seek Competent Legal Counsel

Thank You!

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THANK YOU!

Pluto Legal, PLLC

100 E. Highway 14

Tyler, MN 56178

Toll Free: 1-866-457-3131

lpluto@plutolegal.com

lgilbert@plutolegal.com

cvos@plutolegal.com

Pluto Legal TeamJuell Buchholz, Cheryl Vos, Amy VanEck,

Attorney Lisa K. Pluto, Todd Berger, Attorney Leah R. Gilbert,

Beth Daniels, Traci Sherman