Practical Planning To Practical Planning To Protect Yourself and Your Protect Yourself and Your

Loved OnesLoved OnesWith Tips for RV’ersWith Tips for RV’ers

By: Martin M. Shenkman, CPA, MBA, PFS, AEP, JD

CaveatsCaveatsCaveatsCaveats

Nothing in these slides or any accompanying presentation is to be considered tax, legal, investment or other professional advice. The information is merely provided for educational purposes and no action should be taken without the individual consulting his or her own tax, estate, legal, financial, investment, insurance and other advisers.

The hosts and sponsors of this program are NOT responsible for its content or accuracy

What is estate What is estate planning?planning? Providing peace of mind for you and your Providing peace of mind for you and your

loved ones on a broad range of planning loved ones on a broad range of planning issuesissues

An integrated plan that coordinates your An integrated plan that coordinates your investments, insurance, emergency and investments, insurance, emergency and disability planning, and more while you disability planning, and more while you are alive, disabled, retired and for your are alive, disabled, retired and for your heirsheirs

You have to define what “estate You have to define what “estate planning” means to youplanning” means to you

Overview of Estate Planning Overview of Estate Planning Documents You Should Documents You Should ConsiderConsider

Overview of Estate Planning Overview of Estate Planning Documents You Should Documents You Should ConsiderConsider

Powers of AttorneyPowers of Attorney• Springing vs. notSpringing vs. not

• General vs. SpecialGeneral vs. Special

• Why standard forms aren’t Why standard forms aren’t sufficesuffice

• Special provisions to includeSpecial provisions to include

Living WillsLiving Wills• What they are and why they are What they are and why they are

importantimportant

• Address specific health issuesAddress specific health issues

• Religious issuesReligious issues

•Health Proxies

•selecting agent

• What powers to include

•Revocable Living Trusts

• Unique importance

• Boilerplate forms rarely address nuances needed

• What can and should you have

Introduction to the 12 Introduction to the 12 StepsSteps Every person is unique – it has to be Every person is unique – it has to be youryour

plan and address plan and address youryour challenges challenges Reflect your personal wishes and Reflect your personal wishes and

circumstancescircumstances Create a strong foundation of documents, Create a strong foundation of documents,

steps and a plan to build uponsteps and a plan to build upon

Action Step: Set Action Step: Set Personal Goals Personal Goals What concerns do you and your loved What concerns do you and your loved

ones have that planning might address?ones have that planning might address? Are you on track with your retirement Are you on track with your retirement

planning? What if you become disabled planning? What if you become disabled or die before retirement?or die before retirement?

Who are you concerned about and who Who are you concerned about and who are you responsible for?are you responsible for?

Are there any special personal, Are there any special personal, religious, financial, health, or other religious, financial, health, or other goals or concerns that might affect your goals or concerns that might affect your planning?planning?

Step 1: Organize Step 1: Organize Emergency, Financial, Emergency, Financial, Information and Advisors Information and Advisors InformationInformation

Contact People Contact People (names, (names, numbers)numbers)

Financial Information Financial Information (account information)(account information)

Passwords and Security Passwords and Security CodesCodes

Documents Documents (Estate planning (Estate planning documents, legal documents, and more)documents, legal documents, and more)

Budget and PlanBudget and Plan

Investment and Financial Investment and Financial Information is Critical to Information is Critical to Organize and CommunicateOrganize and Communicate

Title to AccountsTitle to Accounts• ITF, PODITF, POD• JointJoint• OtherOther

Beneficiary designations Beneficiary designations • For insurance, retirement For insurance, retirement

and other assetsand other assets• Watch brokerage account Watch brokerage account

beneficiary designationsbeneficiary designations

Account ManagementAccount Management• Consolidation and Consolidation and

simplificationsimplification• Are there excess accounts?Are there excess accounts?• Who is giving you guidance?Who is giving you guidance?

AutomationAutomation• Organizing recordsOrganizing records• On line paymentsOn line payments• Set up on computer to Set up on computer to

facilitate planningfacilitate planning

Action Steps: Emergency Info Action Steps: Emergency Info #1#1

People forget and panic. Don’t put off People forget and panic. Don’t put off creating an emergency listcreating an emergency list

Type up a list on your computer so you Type up a list on your computer so you can update itcan update it

Disseminate the list to key people, ask Disseminate the list to key people, ask for their help and tell them what they for their help and tell them what they might need to do to helpmight need to do to help

Each professional adviser should have Each professional adviser should have the list in their filethe list in their file

Action Steps: Emergency Info Action Steps: Emergency Info #2#2

Organize the list by category Organize the list by category (e.g., (e.g., banking, religious adviser, professional banking, religious adviser, professional advisers, family, neighbors)advisers, family, neighbors)

Give only the key facts someone will Give only the key facts someone will need to act in an emergency need to act in an emergency (person (person name, institution, insurance, office/home name, institution, insurance, office/home and cell number, email, etc.)and cell number, email, etc.)

List info needed for emergency List info needed for emergency action action (e.g., account number, policy (e.g., account number, policy number, etc.)number, etc.)

RV TIP Step 1: Organize RV TIP Step 1: Organize Emergency, Financial, Emergency, Financial, Information and Advisors Information and Advisors InformationInformation

Rv’ers, or anyone who travels extensively, should take Rv’ers, or anyone who travels extensively, should take extra precautions to make sure information is extra precautions to make sure information is available when neededavailable when needed

Consider a web based personal information “locker” Consider a web based personal information “locker” and give a trusted person the infoand give a trusted person the info

Email updated emergency info list to key people Email updated emergency info list to key people whenever there are major changeswhenever there are major changes

When determining where to keep accounts consider When determining where to keep accounts consider tax issues of residency/domiciletax issues of residency/domicile

Step 2: Designate a Person to Step 2: Designate a Person to Handle Financial and Legal Handle Financial and Legal IssuesIssues

AgentAgent (Successors)(Successors)

CompensationCompensation Begin dateBegin date (Trigger)(Trigger)

PowersPowers (Authority)(Authority)

DurabilityDurability (Disability)(Disability)

Action Steps: Power of Action Steps: Power of AttorneyAttorney

Choose a trusted agent and several successorsChoose a trusted agent and several successors Hire a lawyer to draft powers that work for Hire a lawyer to draft powers that work for

your personal and financial situationyour personal and financial situation Discuss modifications to standard forms: Discuss modifications to standard forms:

– Gift powersGift powers– Who can/should be supportedWho can/should be supported

Sign then distribute originals and/or copies, Sign then distribute originals and/or copies, organize finances so your agent can act easily organize finances so your agent can act easily and safelyand safely

Evaluate pros/cons of joint accounts versus Evaluate pros/cons of joint accounts versus powerpower

RV TIP Step 2: Power of RV TIP Step 2: Power of AttorneyAttorney

Rv’ers, or anyone who facing tax uncertainty as to Rv’ers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are which state they reside in (or in which they are domiciled) should consider the residence of the agent domiciled) should consider the residence of the agent they name (and where the assets are the agent will they name (and where the assets are the agent will manage in an emergency) when making a selectionmanage in an emergency) when making a selection

Which state law should apply to your powerWhich state law should apply to your power Where should you sign your powerWhere should you sign your power Can you use a broad power that is more likely to be Can you use a broad power that is more likely to be

accepted in other states (e.g., 2 witnesses and a accepted in other states (e.g., 2 witnesses and a notary)notary)

Step 3: Designate a Person to Step 3: Designate a Person to Make Health Care Decisions Make Health Care Decisions and Access Medical Recordsand Access Medical Records

Agent Agent (successors)(successors)

Powers Powers (religion)(religion)

Signature Signature (State law)(State law)

Move Move (state; facility)(state; facility)

Action Steps: Health Care Action Steps: Health Care ProxyProxy

Choose an agent and several Choose an agent and several successors who understand your successors who understand your wishes – e.g. religious preferenceswishes – e.g. religious preferences

Hire a lawyer to draft a health proxy Hire a lawyer to draft a health proxy that accomplishes your personal goalsthat accomplishes your personal goals

Sign originals, distribute copies (or Sign originals, distribute copies (or originals), be sure one is included in originals), be sure one is included in your medical chartyour medical chart

Discuss your decisions with family, Discuss your decisions with family, friends and agentsfriends and agents

Step 4: Step 4: Communicating Your Communicating Your Health Care WishesHealth Care Wishes

Action Steps: Living WillAction Steps: Living Will

A living will can give the agent under your health A living will can give the agent under your health proxy valuable guidance as to what you want proxy valuable guidance as to what you want donedone

Review and consider personal wishes that should Review and consider personal wishes that should be reflected, e.g. religious observances, care be reflected, e.g. religious observances, care instructionsinstructions

Sign a living will that communicates your Sign a living will that communicates your personal decisionspersonal decisions

Review organ donations, burial and last rights, Review organ donations, burial and last rights, etc.etc.

Sign original, distribute copies (or originals), be Sign original, distribute copies (or originals), be sure to include a copy in your medical chartsure to include a copy in your medical chart

Discuss your decisions with family, friends and Discuss your decisions with family, friends and agentsagents

RV TIP Step 4: Living WillRV TIP Step 4: Living Will

Rv’ers, or anyone who facing tax uncertainty as to which Rv’ers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should state they reside in (or in which they are domiciled) should consider the impact of burial requests on state tax consider the impact of burial requests on state tax consequences – gruesome but trueconsequences – gruesome but true

Which state law may govern your health care decisionsWhich state law may govern your health care decisions Where should you sign your health proxy and living willWhere should you sign your health proxy and living will Can you tailor the document so that it is more likely to be Can you tailor the document so that it is more likely to be

accepted in other states (e.g., 2 witnesses and a notary)accepted in other states (e.g., 2 witnesses and a notary)

Step 5: Protect Your Minor Step 5: Protect Your Minor Child With an Emergency Child With an Emergency Child Medical FormChild Medical Form Disclose child’s care/emergency Disclose child’s care/emergency

informationinformation

Action Steps: Protecting Action Steps: Protecting ChildrenChildren

Review all aspects of protecting your Review all aspects of protecting your children with your adviserschildren with your advisers

Guardian and trusts under your willGuardian and trusts under your will Financial planning – 529 plans and Financial planning – 529 plans and

other savings other savings Personal letter of instructionPersonal letter of instruction Directions in your power of attorneyDirections in your power of attorney

Step 6: Sign a WillStep 6: Sign a Will

Action Steps: Sign a WillAction Steps: Sign a Will

Wills are important: trusts to protect Wills are important: trusts to protect heirs and save tax; name executor and heirs and save tax; name executor and guardian; and more guardian; and more

Write a separate personal letter of Write a separate personal letter of instructioninstruction

Consider trusts for minor childrenConsider trusts for minor children Include a donation to charities – send a Include a donation to charities – send a

message to your heirs that giving back message to your heirs that giving back is importantis important

RV TIP Step 6: WillRV TIP Step 6: Will

Hire a lawyer in the state you claim is your domicile – Hire a lawyer in the state you claim is your domicile – this will support your position and get you better this will support your position and get you better advice than trying to rely on an “internet” will advice than trying to rely on an “internet” will

Which state law should apply to your willWhich state law should apply to your will Where should you sign your willWhere should you sign your will If you have real estate or tangible property in a state If you have real estate or tangible property in a state

other than where you maintain you are domiciled, that other than where you maintain you are domiciled, that other state’s laws (and tax system) will applyother state’s laws (and tax system) will apply

Step 7: Consider Step 7: Consider Creating a Revocable Creating a Revocable Living TrustLiving Trust Determine if you and your loved ones will benefitDetermine if you and your loved ones will benefit Establish a personalized (not boilerplate) living trustEstablish a personalized (not boilerplate) living trust Transfer assets to a trust during your lifetimeTransfer assets to a trust during your lifetime Probate and intestacyProbate and intestacy Manage assets during disability or illnessManage assets during disability or illness

Action Steps: Revocable Living Action Steps: Revocable Living TrustTrust

See comments for “Wills” above and See comments for “Wills” above and coordinatecoordinate

Boilerplate Trusts designed to avoid Boilerplate Trusts designed to avoid probate won’t accomplish other probate won’t accomplish other important goalsimportant goals

Focus of document should be Focus of document should be protecting you and your loved ones, protecting you and your loved ones, and communicating your wishesand communicating your wishes

Tailor trustee, business operation, and Tailor trustee, business operation, and other personal provisions to meet your other personal provisions to meet your specific goalsspecific goals

RV TIP Step 7: Living TrustRV TIP Step 7: Living Trust

Using a living trust can consolidate assets, minimize Using a living trust can consolidate assets, minimize the likelihood of other states claiming that their law the likelihood of other states claiming that their law applies, and make management of your assets easier applies, and make management of your assets easier by a family member or friend who lives at a distance by a family member or friend who lives at a distance from where you arefrom where you are

Living trust alone may not suffice, you might need a Living trust alone may not suffice, you might need a limited liability company to own real estate or limited liability company to own real estate or tangibles – consult a lawyer in the state where the tangibles – consult a lawyer in the state where the assets are located in addition to the lawyer you hire in assets are located in addition to the lawyer you hire in the state you claim is your domicilethe state you claim is your domicile

Step 8: Be Sure Your Step 8: Be Sure Your Insurance Coverage is in Insurance Coverage is in OrderOrder Property and casualty insuranceProperty and casualty insurance Long term coverageLong term coverage Disability income replacementDisability income replacement Life insuranceLife insurance Liability Liability

Action Steps: Life InsuranceAction Steps: Life Insurance

Don’t make assumptions – get life Don’t make assumptions – get life insurance coverage reviewed at least insurance coverage reviewed at least every 2-3 yearsevery 2-3 years

Evaluate options – is your life Evaluate options – is your life insurance adequate? What goals do insurance adequate? What goals do you have for life insurance? you have for life insurance?

Standard may not work – what Standard may not work – what objectives do you have for your objectives do you have for your insurance?insurance?

Action Steps: Other InsuranceAction Steps: Other Insurance

Do you have disability insurance (should Do you have disability insurance (should you?) to replace income if you cannot work?you?) to replace income if you cannot work?

Long term care coverage, if obtainable and Long term care coverage, if obtainable and affordable, should be evaluatedaffordable, should be evaluated

Property, casualty and liability coverage is Property, casualty and liability coverage is often the planning step-child – make it a often the planning step-child – make it a prioritypriority

Be sure everyone that should be listed as Be sure everyone that should be listed as insured is; be sure all info given to the insured is; be sure all info given to the insurance company is accurate (e.g., don’t insurance company is accurate (e.g., don’t insure a rental property as if it were a insure a rental property as if it were a residence since its cheaper)residence since its cheaper)

Action Steps: Insurance Action Steps: Insurance ReviewReview

Insurance decisions are not a one-shot Insurance decisions are not a one-shot deal – review all coverage that you deal – review all coverage that you have, and coverage you don’t have but have, and coverage you don’t have but might need, at least every 2-3 yearsmight need, at least every 2-3 years

Have your insurance agent prepare a Have your insurance agent prepare a chart of all coverage – eliminate chart of all coverage – eliminate duplication, evaluate deductibles and duplication, evaluate deductibles and special coverage – often you can special coverage – often you can improve your protection and no or even improve your protection and no or even lower costlower cost

RV TIP Step 8: InsuranceRV TIP Step 8: Insurance

Not every insurance agent or company Not every insurance agent or company understands the nuances of how RV’ing may understands the nuances of how RV’ing may affect your coverage, be sure to explain the affect your coverage, be sure to explain the detailsdetails

Be certain coverage keeps up with lifestyle Be certain coverage keeps up with lifestyle changes – if you rent your home and fulltime RV, changes – if you rent your home and fulltime RV, you need landlord’s insurance not homeowners you need landlord’s insurance not homeowners coverage – the wrong coverage could prevent coverage – the wrong coverage could prevent recovery and torpedo you tax planningrecovery and torpedo you tax planning

Step 9: File Beneficiary Step 9: File Beneficiary Designations and Designations and Confirm Title to AccountsConfirm Title to Accounts

Standard provisions are not always Standard provisions are not always adequateadequate

Coordinate with Revocable TrustCoordinate with Revocable Trust What powers should agent haveWhat powers should agent have Give copies to your advisersGive copies to your advisers Update when banks mergeUpdate when banks merge Revise when tax laws changeRevise when tax laws change

Action Steps: Beneficiary Action Steps: Beneficiary DesignationsDesignations

Consider all beneficiary designations: Consider all beneficiary designations: life insurance, pensions, IRAs, life insurance, pensions, IRAs, brokerage accounts and morebrokerage accounts and more

Obtain copies of the forms you filed Obtain copies of the forms you filed and blank forms to facilitate revisionand blank forms to facilitate revision

Be sure your advisers (CPA, lawyer, Be sure your advisers (CPA, lawyer, financial planner) all have copies of financial planner) all have copies of current beneficiary designationscurrent beneficiary designations

Have family members who name you Have family members who name you as beneficiary consider a trust for youas beneficiary consider a trust for you

Step 10: Give BackStep 10: Give Back Demonstrate important values to heirsDemonstrate important values to heirs Inspire others to give and do goodInspire others to give and do good Estate planning is not only about the Estate planning is not only about the

transmission of money, but about the transmission of money, but about the transmission of valuestransmission of values

Action Steps: To Give BackAction Steps: To Give Back

Make a donation (cash, stuff, Make a donation (cash, stuff, insurance)insurance)

Include a bequest in your will – Include a bequest in your will – even small bequests can make a even small bequests can make a big statementbig statement

Write a heartfelt letter of Write a heartfelt letter of instruction to heirs -- Inspire instruction to heirs -- Inspire othersothers

Step 11: Step 11: CommunicateCommunicate Educate and inform your fiduciariesEducate and inform your fiduciaries Express your wishes to your loved onesExpress your wishes to your loved ones Preparation of beneficiariesPreparation of beneficiaries

Action Steps: CommunicateAction Steps: Communicate

Explain your finances, family issues, Explain your finances, family issues, personal goals, and so forth to your personal goals, and so forth to your advisers – tell all so they can help advisers – tell all so they can help properlyproperly

Discuss with family, friends or others Discuss with family, friends or others involved in your life what your wishes involved in your life what your wishes areare

Can those you expect to rely on really Can those you expect to rely on really help? Have alternativeshelp? Have alternatives

Express your wishes in face to face Express your wishes in face to face meetings and then confirm key points in meetings and then confirm key points in writingwriting

Step 12: Review, Step 12: Review, Revisit, ReviseRevisit, Revise

Nothing remains staticNothing remains static– Tax and property lawsTax and property laws– Family situationsFamily situations– Assets and net worthAssets and net worth– Health Health

Action Steps: Your Action Steps: Your Action PlanAction Plan √ √ Write it down or it won’t happenWrite it down or it won’t happen √ √ Set small goals – an hour a week to Set small goals – an hour a week to

clean up all your financial, tax, estate clean up all your financial, tax, estate and other matters – burdensome goals and other matters – burdensome goals will never be keptwill never be kept

√ √ Tell others – including advisersTell others – including advisers √ √ Get help and guidance to get started Get help and guidance to get started

– an initial consultation with a CPA or – an initial consultation with a CPA or other adviser can jump start the entire other adviser can jump start the entire processprocess