Sponsored by:

2 0 1 4

FEATURED IN THIS ISSUE

Use of Benefi ciary & Title

Designations in Estate Planning

> > > > > > > > > > > > > pg 6

Long-Time Volunteers

Create Estate Gift

> > > > > > > > > > > > > pg 9

Estate Planning 101

> > > > > > > > > > > > > pg 17

Donors Making a Difference

> > > > > > > > > > > > > pg 11

Dear Neighbors,

How would you like to be remembered? What will be your legacy?

Many of you have made a signifi cant impact on your community through your volunteer service and generous contributions. Another part of your legacy that you may not have considered is naming a charity as one of the benefi ciaries of your will or trust.

March is Write-A-Will Month, part of a national campaign by the Leave A Legacy program. Each year, local professional advisors and charities come together to bring you valuable information about how you can Leave A Legacy for your family, friends, and the charities close to your heart. With the support of the Arizona Daily Star, we have created this publication to include articles and things to consider when planning your legacy. The feature story highlights members of our community that have chosen to include a charitable legacy in their planning, and the tremendous impact of their generous gifts. We have also listed all of the free public education workshops in our community to assist you with a deeper understanding of issues that arise in estate planning, empowering you to make educated decisions that ensure your wishes are accomplished.

The Planned Giving Roundtable of Southern Arizona is dedicated to making a difference in our community through the facilitation of legacy planning. We look forward to assisting you and providing you with information and planning tools. As you look at the impact you can have on the future of your loved ones and the charitable organizations that hold special meaning for you, we hope you utilize these free educational workshops!

Sincerely,

Leah Geistfeld, President | Planned Giving Roundtable of Southern ArizonaExecutive Director | Center for Planned Giving

Giving is for everyone. With good planning and skillful guidance, the Center for Planned Giving (CPG) can help you make a lasting difference in Southern Arizona. By Leah Geistfeld

Established in 2002 as a free, impartial philanthropic resource for donors, pro-fessional advisors and nonprofits, the Center for Planned Giving (CPG) was created through a partner-ship between the Commu-nity Foundation for Southern Arizona and the Planned Giv-

ing Roundtable of Southern Arizona. Individuals with charitable motivations, but with ques-tions about how to best ac-complish their philanthropic objectives, should contact the Center for Planned Giving, said Craig Wisnom, an elder law attorney and member of the Community Founda-tion for Southern Arizonas Professional Advisory Com-mittee. They can learn about their options, including donor advised funds, direct gifts to public charities, funds that give to a particular field of in-terest, charitable gift annuities and charitable trusts. CPG provides a range of services, including: Confidential consultations with individuals exploring the possibilities of chari- table legacy giving and ma- jor giving

Preparation of calcula- tions, many of which pro- vide income for life to the individual, a charitable in- come tax deduction and a gift to charity Consultations with indi - viduals considering creating a permanent fund either during their lifetime or upon their death Candid and constructive assistance with individuals creating a multi-generation- al family charitable legacy plan Discussion with individu- als and charities of items to consider when creating an endowment Support, partnership and comprehensive resource to Southern Arizona charities for their planned giving pro- grams and policies

The Center for PlannedGiving is a unique philan-thropic resource in our com-munity, said Bill Asdell, a local estate planning attorney. CPG is my partner in plan-ning and provides me with the practical expertise that optimizes the benefit I offer to clients. I count on CPG to provide me with the highest quality consultation as a free, professional, confidential and impartial service to our Tuc-son community.

> Incorporating Philanthropy in Legacy Planning

If you would like more information or have

questions about the services offered by the Center for Planned Giving, please

contact Executive Director Leah Geistfeld at:

lgeistfeld@cfsaz.org, (520) 545-1117

or visit cfsaz.org

Sincerely,

Leah Geistfeld, President | Planned Giving Roundtable of Southern Arizona

Leah GeistfeldExecutive Director

A SERVICE OF COMMUNITY FOUNDATIONFOR SOUTHERN ARIZONA

The Planned Giving Roundtable of Southern Arizona (PGRT) is an organization committed to providing an interdisciplinary network of knowledgeable estate, tax, financial, legal, and fund-raising professionals in South-ern Arizona ongoing education to promote philanthropy through major gifts and planned gifts. PGRT helps mission driven organizations connect with their support base in meaningful and uplifting ways. The primary purpose of the organization is to provide a forum for communication and a clearing house for information about planned giving issues. The organization is com-mitted to raising awareness of regulatory and legislative issues affecting the non-profit sector. The members of

PGRT focus on advancement and professional expertise of its members and providing mutual support to enhance donors experience when making legacy decisions. We honor and thank the following professionals for their dedication to philanthropic education and changing our community as demonstrated by their commitment to the facilitation of Legacy Planning. To become a member or learn more about the Leave a Legacy program, Write-A-Will Month and how the Planned Giving Roundtable of Southern Arizona can help you with your charitable planning, please visit pgrtsoaz.org.

> About Planned Giving Roundtable of Southern Arizona (PGRT)

Leah Geistfeld, PresidentCenter for Planned Giving

Nancy Kirk, CFRE, SecretaryCatholic Foundation for the Diocese of Tucson Stewardshipand Charitable Giving

Tara King-Taylor, CPA, TreasurerHBL - Hammel, Beal & Lauer CPAs PC

Miguel Quezada, Immediate Past President, Special Olympics AZ

Hilary Van Alsburg, Program Co-Chair, Humane Society of Southern AZ

Kimberly Thompson, CFRE, Program Co-Chair, Emerge! Center Against Domestic Abuse

Laura Penny, Introductory Program Co-Chair, Womens Foundation of Southern AZ

Michele Conklin, CFRE, Introductory Program Co-ChairTucson Botanical Gardens

Nancy Schlegel, Membership Development Co-ChairReid Park Zoological Society

Diana Whitman, Membership Development Co-Chair, Reid Park Zoological Society

Ethan Cox, Hospitality Co-Chair, Sponsorship Committee, Southern AZ AIDS Foundation

Sio Castillo, Hospitality Co-ChairCommunity Food Bank of Southern AZ

Gail Brown, Marketing Co-ChairReid Park Zoological Society

Morgan Rost, Marketing Co-Chair Humane Society of Southern AZ

Howard Paley, Sponsorship Committee, Handmaker Jewish Service for the Aging

Bradley Nystedt, Esq , Center for Planned Giving Liaison, Nystedt & Fletcher PLLC

Nicholas Healy, CFA, CFP, Member at Large, Sunshine Wealth Management, LLC

Larry Adamson, Duffield Adamson Helenbolt Fletcher, P.C.Laura Alexander, Alexander | Carrillo Consulting LLCWilliam Asdell, Phillips, Moeller & Conway, P.L.L.C.Lynn Barcklow, American Bible SocietyBrian Bateman, Alexander | Carrillo Consulting LLCJanice Bernardini, Jan Bernardini LawMichael Blimes, Jewish Family & Childrens Services of Southern AZMichelle Blumenberg, U of A Hillel FoundationDeborah Carr, Interfaith Community ServicesFaith Carrabis, Youth On Their OwnMark Channell, AZ Public MediaCarol Clark, Casa de la Luz FoundationDeborah Dale, Smith & Dale, LLCDominique Dancause, Lutheran Social Services of the SWJerlynne Davis, NOVA Financial ServicesLyle Deo, NOVA Financial & Insurance ServicesPamela Doherty, Pamela Doherty ConsultingKerry Dufour, YMCA of Southern Az/ YMCA Foundation of Southern AzMargie Puerta Edson, Catholic Foundation for the Diocese of Tucson Stewardship & Charitable GivingE. Joy Elliott, Gabroy, Rollman & Bosse, P.C.Kim Fernandez, Waddell & Reed Inc. Kelly Fryer, YWCA of TucsonW. Craig Gibson, New York Life Ins. Co.Charlotte Harris, Community VolunteerNicola Hartmann, San Miguel High School

Pauline Hechler, Hechler ConsultingHeather Hiscox, Seven Degrees ConsultingCheryl House, Pima Community College FoundationBonnie Hoyt, Catholic Foundation for the Diocese of TucsonBarbara Huffstetler Moore, St. Lukes HomeFelipe Jcome, CareGiver Training InstituteDeborah Jassem, Western National Parks AssociationNancy Jones, Old Pueblo Community ServicesBonnie Kampa, Interfaith Community ServicesCarrie Kinnear, Kinnear & Co., LLC, Counsel for DevelopmentRobert Kirkpatrick, Pima Council on AgingJack Kuczynski, BMO Private BankClyde Kunz, Clyde Kunz and Associates, LLCEileen Lamse, HBL - Hammel, Beal and Lauer CPAs PCYvonne Lindstrom, Our Family ServicesTeresa Liverzani-Baker, Youth On Their OwnWendi Lucas, ConsultantMary Louise Luna, Carondelet FoundationMichael Luria, Childrens Museum TucsonBruce Martin, Bruce W. Martin, PLCJames Marvel, Slosser Struse Finkbohm Marvel & Fletcher, PLCAmber Mazzei, American Lung AssociationPatrick McCarthy, Beacon GroupKathleen McClary, Wells Fargo - Wealth ManagementKaren McCloskey, BeachFleischman PCPam McConnaughey, Wells Fargo, The Private BankLiz McMahon, Catholic Community Services of Southern AZ

Frances Merryman, Northern TrustKenneth Nesler, Sunrise Wealth Management, LLCChristina Noz, Mission Management & Trust Co.Jane Nugent, Northern TrustRobert Peterson, New Mexico State University Foundation, Inc.Becky Rebenstorf, St. Gregory College Preparatory SchoolAutumn Rentmeester, Childrens Museum TucsonKay Richter, Law Office of Kay RichterJerry Robison, The Salvation ArmyRebecca Rodgers-Kombol, Make Way for BooksDebra Rodriguez, U of A, University LibrariesAlba Rojas-Sukkar, Tucson Museum of ArtCarol Sack, Jewish Community Foundation of Southern AZTracy Salkowitz, Jewish Community Foundation of Southern AZ Allen Saterbak, CPAC FoundationA.K. Gwynn Scrivener, LPL FinancialAngie Smith, Smith & Dale, LLCCraig Sumberg, Fox Tucson Theatre FoundationTheresa Tanner, Roediger Hoff, PLCCat Taylor, AZ Elks Major ProjectsJennifer Tersigni, Raise the Bar ConsultingTerri Thorson, UBS Financial ServicesJennifer Turner, Easter Seals Blake FoundationJodi Vander Ploeg, Bens BellsJohn Velez, Velez & AssociatesLisa Webster, Casa de los Ninos

PGRT 2014 Members

PGRT 2014 Board Members

1.

1.

1.

Steven C. Wagner JD, CPA. Senior Tax Manager

swagner@beach eischman.com520.321.4600

beachfleischman.com

By Steven C. Wagner

Considering estate planning options can sometimes seem like an overwhelming process. Estate planning brings to mind the idea of long and complex legal documents, probate, high costs, and time consum-ing administration of estates. However, one tool that may be used to simplify an estate plan is the use of beneficiary and title designations.

UNDERSTAND HOW YOUR ASSETS

WILL PASS

It is critical to understand how your assets will passupon your death. For in-stance, if beneficiary or title designations are properly set up then the assets will flow to the person named as the beneficiary on the account. Neither a will nor a trust can override a beneficiary desig-nation.

TYPES OF

BENEFICIARY OR TITLE DESIGNATIONS

Payable or Transferable on Death (POD or TOD)

A payable on death or trans-ferable on death designation can be listed on an individ-uals bank account or broker-age account. The person(s) named as the designee has no rights to the account until the death of the account owner.

Beneficiary Designations

Individual Retirement Ac-counts (IRAs), other retire-ment accounts, and life insur-ance policies are the most common examples where beneficiary designations are used. When the owner of the retirement account or the insured of a life insurance policy passes away the as-sets will be transferred to the beneficiaries designated. If no beneficiary has been des-ignated, the funds will pass to the individuals estate and disposed of by the will, or if no will exists, by state law.

Beneficiary Deeds

Beneficiary Deeds are deeds to real property. These deeds convey ownership at the death of the owner of real estate to the beneficiaries listed. It is important that these deeds are properly recorded.

Joint Tenants with Rightof Survivorship

If property is held as joint tenancy with right of survivor-ship, upon the death of the first joint tenant the prop-erty passes to the surviving joint tenant(s). One potential drawback for married couples using joint tenancy with right of survivorship is that mar-ried couples may not get a full basis adjustment to the fair market value at the first

spouses death. Generally, only the portion owned by the first spouse to die will receive an adjustment to the fair mar-ket value at death.

Community Property with Right of Survivorship

Community property with right of survivorship is avail-able in Arizona in order for married couples to pass their interest to the surviving spouse. Unlike joint tenancy with right of survivorship, property held as community property with right of survi-vorship will receive a full basis adjustment to the fair market value of the property at the first spouses death.

ASSETS PASSING

BENEFICIARY & TITLE DESIGNATIONS

AVOID PROBATE

As stated above, if benefi-ciary or title designations are properly used, the assets will pass by the designations. Neither a will nor a trust can override a beneficiary desig-nation. Therefore, the assets passing by a beneficiary or title designation will not be subject to probate.

DO I STILL NEED A WILL OR REVOCABLE TRUST?

A will is still recommended to dispose of any assets that pass without a beneficiary or title designation, whether the assets are passing intention-ally or by mistake without a

designation. Depending on the complexities of the estate and the desires of the de-ceased, a revocable trust may be beneficial.

REVISIT THE ESTATE PLAN

It is best to revisit an estate plan, including the benefic-iary and title designations, at least once every five years or sooner if there is a life-chang-ing event. Some life-changing events include death, birth, marriage, divorce, or disabil-ity. Make sure your documents are updated to ensure that your wishes are followed.

Use of Benefi ciary & Title Designations in Estate Planning>

Leave a LegacyHelp ensure a strong future for Reid Park Zoo

520-881-4753 www.ReidParkZoo.org 1030 S. Randolph Way, Tucson, AZ 85716

Pollyeas Leavea Legacy toInterfaith Community Services (ICS) Endowmentby Brian Bateman, MA

In 2010, ICS established a permanently restricted endow-ment fund and set a goal to raise $5 million by 2015. The endowment ensures ICS sus-tainable annual revenue and protection from future uncer-tainties. In 2013, a payout of $92,000 flowed from the $2.5 million corpus to support the critical work of ICS. $2 million more bequests have been pledged. Ruth and Steve Pollyea recently designated an estate gift to benefit this endowment. For seven years they have served as frontline ICS vol-unteers. Working in the ICS Food Bank, I see the need in our community. I have learned

that Tucson is the sixth most impoverished metropolitan city in America. Im proud to be involved with ICS, a leader in meeting the needs of so many people, said Ruth. The Pollyeas were not so-licited for this bequest. Their decision was based on their deep involvement and particu-larly on their close relation-ships the ICS staff and board. A fellow board members leadership gift inspired them to make their own investment. We hope this gift will also be

a catalyst-- an example for others to make their own gift, said Steve. There was no hard sell. Every great nonpro t deserves an endowment. Grants and contributions come and go, but endowments are forever. Like an insurance policy, it provides future stability and capacity, said Steve. We are happy to share our success with others and to know our passion for ICS will continue after we are gone, said Ruth. Moreover, they con-

tinue to provide annual, capital and endowment gifts to ICS! To those considering an estate gift, they advise you to get close to the organization, and get to know the people, especially leadership. Volun-teering is key so you under-stand how your gift will make a difference. To non-profits seeking es-tate gifts, they caution that it doesnt happen overnight. Engage people as volunteers; build lasting relationships and fuel passion for your mission.

Long-Time Volunteers Create Estate Gift >

By Brian Bateman Consultant

with the Tucson firm of

Email:info@do-good-better.com.

Website:www.do-good-better.com.

Website: icstucson.org

Phone: 520-297-6049

For a planned giving strategy to be successful, your non-profit needs to be healthy now and sustainable for the long-term. At Smith & Dale, we accomplish this by evaluating and advising on all aspects of nonprofit management, so you are situated for success. Our firm has 70 years of combined experience and has helped dozens of organizations across the coun-try raise over $100 million. We are Tucson-based and would love to work with you!

Is your organization ready to accept planned gifts?!

about making a

For More Information About How Smith & Dale Can Help Your Organization Visit Us At: Smith-Dale.com

or Email Us At: Info@Smith-Dale.com

Smith & Dale can help your non-profit ensure you have the systems in place to attract and

make the most of legacy gifts.

Smith & Dale ProviDeS:

StrategicBoard Development

StaffandBoardTrainingsStrategicPlanningFund-RaisingTrainings & Counsel

GrantWriting&ResearchCapitalCampaign Management

Many Options When Contemplating a Legacy Gift Every day ordinary people show extraordinary generos-ity by leaving legacy gifts through their wills and estate plans. Their stories demon-strate a commitment to the future of southern Arizona and represent the very best humanity has to offer. Be-cause of their indelible love of life and concern for others, their memories will never be extinguished, and their gifts will remind us all that we, too, can make a difference in the lives that follow. Charitable bequests are the most common form of legacy giving. Including your favorite charity in your planning al-lows you to continue to share your passion and vision for the future that will live on in perpetuity. Here are three different scenarios: Bob and Ann have been faithful supporters of a local organization and decided that they wanted to do more than just make an annual gift. They have been careful over the years and accumulated some resources. Being generous to family is part of their plan, but they also have the ability and desire to be generous to others. After talking it over, they decided to leave a bequest to their favorite nonprofit. Work-ing with their attorney, they amended their wills to include simple language provided by the organization. It was easy and gave them both peace of mind to have this detail taken care of. Joseph was a widower who had directly benefited from a charitys work. He wanted to thank the organization with a gift from his estate, which in-cluded stock, real estate and an IRA, in addition to leaving something for his children.

Gifting stocks and real es-tate to his children would not be a burden to them; in fact, they could sell these assets without paying any tax. How-ever, if he gave his children the IRA, the IRA would be subject to both estate and income tax. Because the nonprofit organization is tax exempt, it would receive the full amount of the IRA value when he passed away, creat-ing a legacy for the future and avoid any additional tax for his estate and children.

Joseph contacted his IRA custodian to obtain a benefi-ciary designation form and designated the organiza-tion as the 100% recipient of his IRA account. His attor-ney then revised his will to indicate that the other assets would go to his children. John and Maria were nearing retirement. Over the years, with the help of their finan-cial advisor, they had made sound investments and built a substantial portfolio. As their investments increased in

value, their potential capital gains bill was rising. They began looking for a way to sell their highly appreciated stock, generate income for the future and avoid paying high capital gains. Through an email newslet-ter from their favorite charity, they learned that they could make a gift of appreciated stock and bypass the po-tential capital gains tax cost they were facing. They were thrilled to learn that after transferring a portion of their

portfolio to a charitable re-mainder trust, the trust would sell the stock tax free and provide them with income for their retirement years. In ad-dition to the income benefits, they would also receive a charitable deduction for their gift. Charitable giving can be easy and beneficial to you and your favorite charity. Your professional advisor can help you learn about these and other giving options.

> Donors Making a Difference

MARCHWrite-A-WillWorkshop scheduleEvery March, local charities and profes-sional advisors come together to provide free workshops throughout Southern Ari-zona for Write-A-Will month. These free, informative workshops are sponsored by the Leave A Legacy program of the Planned Giving Roundtable of Southern Arizona and the Center for Planned Giving.

Workshop Date / Location

Tuesday | February 25 | Greater Green Valley Community Foundation, 625-4556 10:00 am, at Greater Green Valley Community Foundation

Monday | March 3 | Episcopal Community Services in Arizona, St. Phillips in the Hills Episcopal Church, 664-5809

10:00 am, at St. Phillips in the Hills Episcopal Church, East Murphey Gallery

Tuesday | March 4th | Oro Valley Community Foundation, 529-1857 5:00 pm, at Oro Valley Public Library

Wednesday | March 5th | Easter Seals Blake Foundation, Humane Society of Southern Arizona, Reid Park Zoological Society, YMCA, 623-5511 ext. 224

12:00 pm, at Lohse Family YMCA

Thursday | March 6 | Pima Council on Aging, 790-0504 10:00 am, at Pima Council on Aging

Thursday | March 6 | Casa de la Luz Foundation, 544-9890 ext. 5441 1:30 pm, at St. Marks United Methodist Church, rooms 17 & 18

Thursday | March 6 | Easter Seals Blake Foundation, Humane Society of Southern Arizona, Reid Park Zoological Society, YMCA, 623-5511 ext. 224

2:00 pm, at Northwest YMCA

Thursday | March 6 | Community Food Bank of Southern Arizona, 882-3308 4:00 pm, at Community Food Bank of Southern Arizona

Monday | March 10 | Easter Seals Blake Foundation, Humane Society of Southern Arizona,Reid Park Zoological Society, YMCA, 327-1529 ext. 113

9:30 am, at Easter Seals Blake Foundation, Easter Lilly Conference Room

Wednesday | March 12 | Handi-Dogs, 326-3412 9:00 am, at Handi-Dogs

Wednesday | March 12 | Catholic Foundation for the Diocese of Tucson, Catholic Community Services Foundation, 838-2508

10:00 am, at St. Thomas the Apostle Catholic Church

Wednesday | March 12 | Center for Planned Giving, Community Foundation for Southern Arizona, Womens Foundation of Southern Arizona, Mobile Meals of Tucson, PAWSitively CATS, 770-0800

1:00 pm, at Community Foundation for Southern Arizona

Wednesday | March 12 | Catholic Foundation for the Diocese of Tucson, Catholic Community Services Foundation, 838-2508

6:00 pm, at St. Thomas the Apostle Catholic Church

Thursday | March 13th | Easter Seals Blake Foundation, Humane Society of Southern Arizona,Reid Park Zoological Society, YMCA, 327-1529 ext. 113

2:00 pm, at Northwest YMCA

Wednesday | March 17 | Pima Council on Aging, 790-0504 2:00 pm, at Pima Council on Aging

Tuesday | March 18 | Easter Seals Blake Foundation, Humane Society of Southern Arizona,Reid Park Zoological Society, YMCA, 881-4753

6:00 pm, at Reid Park Zoo-Cafe

Wednesday | March 19 | Casa de la Luz Foundation, 544-9890 ext. 5441 1:30 pm, at St. Marks United Methodist Church

speciaL thanks to the LaW office of kay richter for your generous support

Workshop Date / Location

Thursday | March 20 | Pima Council on Aging, 790-0504 10:00 am, at Pima Council on Aging

Friday | March 21 | Episcopal Community Services in Arizona, Grace St. Pauls Episcopal Church, 664-5809 10:00 am, at Grace St. Pauls Episcopal Church

Saturday | March 22 | Southern Arizona AIDS Foundation (SAAF), 903-4845 10:00am, at SAAF

Sunday | March 23 | Episcopal Community Services in Arizona, Episcopal Church of St. Matthew, 664-5809 9:15 am, at Episcopal Church of St. Matthew

Monday | March 24 | Tucson Wildlife Foundation, Sky Island Alliance, 290-9453 1:00 pm, at the Historic Y

Monday | March 24 | Interfaith Community Services, 297-2738 ext. 222 3:00 pm, at St. Francis in the Foothills United Methodist Church

Wednesday | March 26 | Tucson Botanical Gardens, 326-9686 ext. 25 or ext. 10 1:00 pm, at Tucson Botanical Gardens

Thursday | March 27 | Catholic Foundation for the Diocese of Tucson, Catholic Community Services Foundation, Carondelet Foundation, 838-2508

10:00 am, at Our Lady of the Valley Catholic Church

Thursday | March 27 | Native Seeds Search, Watershed Management Group, 622-0830 ext. 104 6:00 pm, at Native Seed Search Conservation Center

Friday | March 28 | University of Arizona Sarver Heart Center, 626-4164 10:30 am, at Green Valley Public library

If youd like to attend, please contact the organizations to RSVP and to receive directions. For a complete list of events, locations and topics, please visit: www.pgrtsoaz.org

Estate planning now can simplify your life in the future. By Kay Richter

Whether you have a multimil-lion dollar estate or a modest one, every person should take the time to plan ahead and consult with a lawyer before making major estate planning decisions.

BEING PREPARED

Some things to keep in mind include considering if you will have estate taxes and whether you will have a probate, the court procedure, at death. Make sure that you have given someone the legal authority to manage your financial affairs if you are ever disabled. The rule for probate is if your estate is greater than $100,000 of real estate or has greater than $75,000 of other

assets, you have a probate at your death unless you have your assets and real estate in the name of a Trust or other ti-tling option. Your attorney can address whether you should have a probate, do other titling such as beneficiary designations or have a Trust. If your estate is less than $5,340,000, there is no federal estate tax. The state of Arizona has no additional estate tax. Consequently, at this time, most people do not have taxable estates at their death. However, historically the $5 million figure has been much lower and can change anytime. You can leave any amount to your spouse without estate tax. Further, you can leave any amount to charities no matter what the tax rate is in the future. Therefore, leav-ing your estate to charities is always a safe way to avoid estate taxes.

WILLS AND TRUSTS

As you may know, a Will states who your estate will go to at your death. If you are a couple, it may say that all of your estate first goes to your spouse or partner. It then might state who your estate will go to at the second death. If you are a single person, you may have also several back up ideas as to who your estate will go to. If you are someone who is not close to any family members or if you do not have family members, you may consider charities as the recipient of your estate. Also you nominate who you want to be the financial manager under your Will. In Arizona, the word for executor is Personal Representative. For any manager under any document you do, you may want to consider naming sev-eral people or bank or trust departments consecutively. If the first person cannot act at the time needed, then the next person or trust depart-ment in line can act.

In choosing your Personal Representative, think about who would do the best job, who you trust and who has the time and interest. Under your Will, you also de-cide who will receive your per-sonal belongings such as your clothing, furniture and other household items. Arizona al-lows special sheets that you can fill out at any time where you list special items for spe-cial people. If you have a Trust, you will state in your Trust who your estate will go to. For larger estates, a Trust is the best vehicle. It avoids probate in Arizona and in any other state that you have real estate. It can provide possible needed estate tax planning. It has a stronger ability to allow someone else to manage your financial affairs, if you are not able to. It is totally private during your lifetime and at your death. Further in your Trust, you can provide a special Trust for your spouse or partner which benefits them during their lifetime with what remains at his or her death then going to your children, other people or charity.

You can create a Trust, within your Trust, for children or grandchildren where col-lege education can be paid for. At a given age or ages, the Trust can then be distributed outright to them. For example, the Trust could go outright to the child or grandchild at age 25 or half at age 25 and half at 30. Additionally, you can create a Trust for a family member or friend who is not a good money manager.

OTHER DOCUMENTS NEEDED

Have you looked into a Durable Financial Power of Attorney? This states who you want to manage your estate if you are not able to during your lifetime. If, for example, you have a car accident, that person can pay your bills, file your taxes, and manage your investments. Some people choose to have a current Durable Power of Attorney. This means that the person selected can sign on their behalf right now. If you are having medical problems or are at an older age, this is extremely helpful. A Health Care Power of Attorney and Living Will is an-other essential document. The

Health Care Power of Attorney states who you want to make health care decisions if you cannot. Further, it can appoint someone to execute burial decisions. A Living Will usually states that you do not want to be on life support systems if you are dying anyway. This is the typical Living Will that most people do. This is mandatory in Arizona, in order to discon-nect life support systems without a court order. There are other small docu-ments that accompany the es-tate plan. Additionally, if you have a child or person receiv-ing governmental assistance due to financial need such as food stamps, ACCESS, or SSI, you can do a Special Needs Trust so that they do not lose their governmental benefits due to the inheritance. You can set up a Charitable Remainder Trust where some-one else receives the income for life, with the remainder going to charity. You can work directly with the charity, set up an annuity that benefits you and the charity. You can make charities the beneficiary of your 401k, IRA, or life insur-ance policy.

Estate Planning 101

Kay Richter

The Law Office of Kay Richter practices in the

areas of: Estate PlanningTrusts, Wills, Elder Law

3615 N. Prince Village Place, #101

Tucson, Arizona 85719(520) 318-1301

>

YOUR TRUSTEDKNOWLEDGENETWORK

Education

EthicsRelat ionships

Your Partners for

Leave A Legacy

Society of FinancialService Professionalsof Southern Arizonawww.nancialpro.org/southernarizona

Serving the communitys insurance and nancial service needs since 1964

50 years50 years

If you are 16 years old, however, it can also be incredibly scary and lonely. Teen Outreach Pregnancy Services (TOPS) has been providing support and

health education to pregnant and parenting teens in Tucson since 2000, helping to facilitate the births of over 5000 babies!

With your help, TOPS can continue to support and educate these vulnerable young women as they learn how to care of themselves and their families, and as they learn to become positive, responsible parents. You can make a difference in the future of our community by helping to transform the oftentimes negative outcomes of teen child-

bearing into more positive results that include health, education, and self-sufficiency!

Having a Baby is a Joyous, Wonderful, and Life-Changing Event.

To learn more, please contact Debbie Allen,

TOPS Development Director, at 520.284.9511

As you plan your estate, please consider leaving a legacy that benefits the health & welfare of these adolescents &

their newborns. Through your generous gift, our community will benefit for generations to come!

By Christina Noz

At this moment, you may be the perfect person to manage your trust assets. But what happens when you are no longer able to serve? The job may not be as easy for the

individual who will succeed you. A trustee holds legal title to property for the benefit of another. A trustee also acts as a fiduciary, which means the trustee must exercise good faith in dealing with benefi-ciaries. A successor trustee steps in when the original trustee can no longer serve due to incapacity or death, or simply because the original trustee chooses to resign. Its a simple concept, but not a simple job. A trustees duties are varied and include:

Investment management: Trust assets must be invested according to the trusts terms. The trustee should be familiar with the prudent investor rule and the concept of diversifi-cation.

Treating beneficiaries fairly: Trustees must balance the needs of current and future beneficiaries.

Loyalty: Trustees must avoid self-dealing and may not gen-erally have a personal interest in a transaction involving trust property.

Reporting: Trustees file in-come tax returns and provide beneficiaries with regular reports of the trusts assets. Choosing a trustee is an essential part of every estate plan. Ask yourself these ques-tions about your successor trustee: Is the person or entity will-ing to assume the duties of a trustee? Are the beneficiaries of my trust best served by this per-son or entity?

INDIVIDUALS AS TRUSTEES

Many trust makers name a family member as successor trustee. Perhaps your trust is small and hiring outside professionals is too expen-

sive. Or, you believe there is little possibility of conflict after you step down. In this case, a family member may be a good choice. Your family member knows you best and is concerned with administer-ing your trust efficiently. Dont assume, however, that a family member is willing to act as trustee. The job is time-consuming and complicated, especially if you become incapacitated for an extended time. Ensure that the person you choose wishes to serve as trustee and understands what is involved.

CORPORATE TRUSTEES

Trust companies and banks serve as trustees. They pro-vide objective alternatives to a family member. They are bonded and regulated by law. Often, a family member lacks the legal, tax and investment management skills needed to act as trustee and must hire professional help. These services may be included in a

corporate trustees fees. It is common for family members to face conflicts with relatives while serving as trustee. Since a corporate trustee is independent, it is more likely to make difficult decisions without causing family rifts.

CHOOSING THE MIDDLE COURSE

Take advantage of an invest-ment managers experience to assist you or your successor trustee. Hire an investment manager whose philosophy aligns with your current and future goals.

Choosing the Best Trustee for the Job

Mission Management & Trust Co. is Tucsons only indepen-dent trust company. Mission

offers investment management & trust services.

3567 E. Sunrise Dr, Ste. 235, Tucson, AZ 85718

520.577.5559 www.MissionTrust.com

Christina NozVice President, Trust Officer

520-545-1117

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