everything you need to know about estate planning

Download Everything You Need To Know About Estate Planning

Post on 28-Nov-2014

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This is a seminar for Financial Advisors on everything they need to know about estate planning, trusts, and estate taxes in order to serve their clients

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  • 1. Everything the Financial Advisor Needs to Know About Estate Planning (in 45 minutes or less) The Wilsey Law Firm Presents: www.wilseylaw.com
  • 2. What Youll Learn
    • Why Should You Care?
    • Estate Planning Basics
    • Where the Estate Tax is Headed
    • How to Pass Wealth from One Generation to the Next
    • How to Protect Assets from Creditors and Predators
    • How to Plan for Qualified Retirement Plans
  • 3. Why Should You Care??? because your client does!!!
  • 4. Wealth Manager v. Investment Generalist
    • Russ Alan Prince, Cultivating the Middle Class Millionaire
      • Clients with Net Worth of $3 to $10 million
        • 83.8% want to work with Wealth Manager, as opposed to Financial Advisor or Investment Advisor
    • True Wealth Managers have double the average gross production as financial advisors or investment advisors according to Prince
  • 5. Wealth Manager???
    • Holistic approach used to enhance clients entire financial and family situation
      • Investments
      • Estate Planning
      • Insurance
      • Credit
    • 77.9% of Advisors describe themselves as Wealth Managers
      • 8.4% of advisors actually are according to Mr. Princes definition
        • These advisors fail to manage a clients overall wealth situation
          • They lose business as a result
  • 6. Where does estate planning fit in???
    • Clients with $3 to $10 million
      • 93.6% want to make sure their heirs are adequately taken care of.
        • 53% worry about having enough money for retirement
      • Far and away the largest concern is estate planning
    • If you can address this concern, then you can address their financial concerns (and your business concerns)
  • 7. Estate Planning Basics
  • 8. Estate Tax
    • Not Going Away
    • You Clients should plan now, not wait to see where it settles
      • Its never going to settle
      • Their assets will only appreciate
        • Lack of action will make the problem worse
  • 9. Estate Tax Exemption
    • Maximum Amount passing free of estate taxes (double for spouses)
      • 2007 $2,000,000
      • 2008 $2,000,000
      • 2009 $3,500,000
      • 2010 no estate tax
      • 2011 $1,000,000
  • 10. Gifting Rules
    • $12,000 per person per year to as many people as desired
    • $1,000,000 gifting during the life
      • above $12,000 annual limit
      • cumulative, not gifts per person
    • Money left to charity passes free of estate tax
  • 11. The Revocable Living Trust More Than a Piece of Paper!!!
  • 12. Trust Reviews
    • Hidden Gem for Advisors
    • Allow you to bond with client
    • Allow you greater access into assets
    • Be careful of liability
  • 13. The 10 Revocable Living Trust Keys
    • Avoid 100% of Death Probate Fees
    • Avoid 100% of Lifetime Probate Fees
    • Health Care Decisions in the Event of Incapacity
    • Protect Minor Children
    • Minimize Estate Taxes
    • Provide Asset Protection for Surviving Spouse
    • Protect against Surviving Spouse Remarriage
    • Protect Children from Losing Inheritance
    • Prevent 2 nd Estate Tax
    • Comprehensive Estate Plan
  • 14. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust
  • 15. LLCs In Estate Planning New and Improved Family Limited Partnership
  • 16. 3 Benefits of LLCs
    • Creditor Protection
    • Discount at Death
    • Discount in Lifetime Gifting
      • This is the only issue with the IRS
  • 17. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust
  • 18. THE SPOUSAL GIFTING TRUST Understanding the Ultimate Trust
  • 19. Spousal Gifting Trust
    • Removes Assets From Estate
    • Protects Assets from Creditors
    • Allows for Greater Gifting to Kids in Future
    • Allows you to Retain Control of Assets
    • Flexible Investment Options
  • 20. What it is
    • Husband Creates Trust for Wife
    • Wife Creates Trust for Husband
    • Each spouse is trustee of the others Trust
      • Each spouse can use their trust for Health, Education, Maintenance and Support
    • Each spouse is main beneficiary of the others Trust
      • Passes to kids, grandkids, upon death
      • Not to other spouse
  • 21. How Money Gets in SGT
    • Crummey Gifts
      • Spouse
      • Kids
      • Grandkids
    • Use $1,000,000 exemption
    • Have Trust Purchase Property
  • 22. Results (10% growth) $6,948,227.60 $17,370,569.00 $96,000.00 5 30 $2,419,296.00 $6,048,240.00 $96,000.00 5 20 $673,196.80 $1,682,992.00 $96,000.00 5 10 $257,879.50 $644,699.00 $96,000.00 5 5 $42,240.00 $105,600.00 $96,000.00 5 1 Estate Tax Savings Amount in SGTs Annual Gifts made to SGTs Number of Family Members Year of SGT
  • 23. Supercharge the SGT
    • Combine with discounts in LLC to produce amazing results
    • Example
      • 5 family members (spouses, three kids)
      • $12k per year each family member
      • 10% growth
      • 33% discount
        • $18k per person instead of $12k
        • $1,500,000 exemption instead of $1,000,000
  • 24. Results of Supercharged SGT $10,422,341 $26,055,853 $144,000 33% $96,000 5 30 $3,628,944 $9,072,360 $144,000 33% $96,000 5 20 $1,009,795.20 $2,524,

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