Download - Estate Planning for Women
Think you don’t need an Estate Plan?
You Do.
FINANCIAL WISDOM FOR WOMEN A FINANCIAL AND ESTATE PLANNING EVENT FOR THE
WOMEN OF ST. MARY’S UNIVERSITY MAY 20, 2016
What is Estate Planning? Asset Management During Life
Incapacity Centralized control
Asset Protection Planning Divorce Creditor protection
Asset Distribution Upon Death On your terms
GOALS Transfer Title Provide for Family Retain Property in Family Charitable Intent Control Future Disposition Avoidance of Tax
Estate Planning is a Dynamic Process Life Changes
Marriage, Divorce, Birth, Death and Disability
Economic Changes Income Business Inheritance
Changes in Law Tax, Probate, and Property Law
Disposition of Assets Transfers During Life – “Intervivos Transfers”
Transfers Upon Death – “Testamentary Transfers”
Beneficiaries of Property
Instrument Disposing of Property Will Trust Deed Contract
Last Will and Testament States How Your Property Passes Upon Your Death
Beneficiaries “Outright” vs. “In trust”
Appoints a Person or Entity to Administer Your Estate and Manage Assets Executor Trustee
Probate of Will
Probate and Estate Administration Appointment of Executor
Duties of Executor Collect Assets of Estate Pay Debts Distribute Remaining Property to Beneficiaries
Independent Administration vs. Dependent Administration
What If I Die Without a Will? Property Passes According to Texas Estates Code
Estates Code Allocates Property to Heirs in Percentages
Property May Not Pass According to the Deceased’s Wishes
Administrator of Estate Appointed by Court Administrator May be Required to Post Bond
No Tax Planning
Administration Expenses
Trust Agreement Fiduciary Relationship When One Person Gives Property to Second Person
for the Benefit of a Third Person
Trust Holds Legal Title to Property
Management and Investment for the Sole Benefit of the Beneficiary
Trustee has a Fiduciary Duty to Benefiary
Intervivos (lifetime) vs. Testamentary (activates upon death)
Trust can Benefit the Person Transferring the Property (Grantor, Trustor, Settlor) or a Third Party
Trust vs. Will A Will Only Comes Into Effect After a Person’s Death Whereas a Trust can Become
Effective During Their Life
Disposition of Property
Tax Planning/Avoidance
Creditor Protection
Will can Contain a Trust for a Beneficiary
Probate vs. Non-Probate
Administration Expenses
Beneficiary Designations Life Insurance
IRA
Annuities
Bank Accounts Joint Tenants / Rights of Survivorship JTWROS Payable on Death (POD)
Non-Probate Assets – Do not Pass under Will/Trust – Defeats Estate Plan
Special Needs Trusts Supplemental Needs Trusts
Provide Care for Beneficiary Without Disqualifying Beneficiary From Government Benefits
Government Programs Limited Based on Income and Assets Medicare Medicaid Gifting of Assets Penalties
Revocable Trust for Incapacity Lack of Family to Care for Beneficiary
Management of Beneficiary’s Assets By Third Party
Eliminates Court Appointed Guardian of Estate
Ancillary Estate Planning Documents Statutory Durable Power of Attorney
Medical Power of Attorney
HIPAA Form
Directive to Physicians (Living Will)
Taxes and Tax Planning Types of Transfer Taxes
Gift Tax Estate Tax Generation Skipping Transfer Tax
Gift Tax Based on Assets Transferred During Lifetime Annual Exclusion Amount Payable By Donor Lifetime Credit / Rate
Tax and Tax Planning Estate Tax
Based on Assets Held Upon Death No Exclusion Lifetime Credit
GST Tax (Generation Skipping Transfer Tax) During Life or After Death Tax Occurs When Assets Skip a Generation Lifetime Credit
Tax and Tax Planning Ways to Reduce Taxes
Reduce Assets or Asset Value Annual Exclusion Gifts Family Limited Partnership Discount Credit Shelter Trust Marital Deduction Trust Irrevocable Trusts for Third Parties or Charity
Patty is a shareholder with Duncan, Bressler & Liu, Inc. Her practice concentrates on estate planning and trusts (including family wealth transfers), marital agreements, probate, and guardianships. She is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization and is a Fellow of both the Texas Bar Foundation and the San Antonio Bar Foundation. She is licensed in all Texas state courts and the United States District Court for the Western District of Texas. She is a graduate of Leadership Texas (2014) and currently serves on the Board of Governors for the San Antonio Estate Planners Council. Patty received her undergraduate degree from Rhodes College and her law degree from St. Mary's University School of Law.
Patricia Rouse Vargas
Patty VargasDuncan, Bressler & Liu, Inc.
1020 N.E. Loop 410, Suite 500San Antonio, Texas 78209