prepare advice from an attorney. name of facilitator, title, organization name of attorney legally...

Prepare

Advice From An Attorney

Name of Facilitator, Title, Organization

Name of Attorney

Legally Secure Your Financial Future: Organize, Communicate, Prepare

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Legally Secure Your Financial Future: Organize, Communicate, PrepareCooperative Extension

3

Seminar Objectives

Participants will:

Recognize legal problems associated with estate planning

Gain information to prevent or solve legal problems

Develop a corrective plan of action to get their legal affairs in order

Get generalized answers to legal questions


4

The Estate Planning Process

Communicate

Organize

Prepare


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Agenda

Wills Probate Trusts How property is titled Additional topics


6

Case Studies

Insert relevant case studies

State Specific


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“Everyone needs an estate plan. If you do nothing, the state will decide through state law how to dispose of

your possessions after death.”S. Badenhop- Estate Planning: Wills and Probate in Kentucky


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If You Were to Die Tomorrow…

Who would get my property? Who would care for minor

children/parents/spouse/partner? Would the family business continue? Would the estate be settled properly? Would taxes, fees, and costs be held to a minimum? Would a trust have been best for you?


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Transferring Resources

Will – how you want your resources distributed

Gifts – prior to death can reduce the taxes on your estate

Trusts - a tool for transferring property


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Wills & Probate Terms

Will - legal document that gives instructions to be carried out after your death

Probate - to prove or validate the will

– process to carry out your wishes according to the will

Personal Representative (executor or executrix)– person who will be responsible for carrying out

your wishes


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Steps in ProbateOverview of the process

Personal Representative Probate CourtSubmits Will to Probate


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Choose Your Personal Representative Carefully

Able to do the job Willing Convenience/proximity Can keep peace among family

members Legal requirements


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Duties of the Personal Representative

Proves the will in probate court Collects & inventories property Pays bills & collects debts Files tax returns Manages probate property Defends or brings lawsuits, if needed Distributes property


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Why Have a Will?

Allows you to decide how your assets are distributed after death

Leaves more resources to distribute to heirs

Appoints a guardian of your choice for minor children – Important to name a second alternative

guardian as backup


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Dying Without a Will

Intestate - dying without a valid will __________ laws would govern asset distribution May pay more in taxes for large estates

Insert your state

State specific


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Property Distribution Without a Will in Idaho

With a Spouse Separate property

– ½ (if parents or issue*) (other ½ goes to issue* or, if no issue*, to parents)

– 100% (if no parents or issue*) Community property

• 100%

*issue=children/grandchildren etc.

State specific


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Property Distribution Without a Will in Idaho

No Spouse Children Parents (if no children) Brothers & sisters or descendant of brothers and sisters

only (if no children and no parents) Grandparents or descendants of grandparents (if no

children, no parents, no brothers or sister or descendants of brothers or sisters)

No relative – goes to the state.

State specific


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Non-titled Property Transfer

in Idaho Personal Effects Statement

– Family heirlooms

– Keepsakes

State specific


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A Valid Will

Elements that must be present in a valid will Age requirement – legal age Individual has sound mind Intended to transfer property Written Properly signed Properly witnessed Properly executed

State Specific


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Writing Your Own Will

A handwritten will is called a Holographic will

It must be signed by the writer– Frequently ambiguous or defective

– Can cause delay, expense, and litigation

Consult an attorney State Specific


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Self-Proving Affidavits

Self-proving affidavits eliminate the necessity of having witnesses go to court to testify that they witnessed the signing of a will

As a part of the will, the affidavit is valuable as proof of the will

Also valuable because witnesses are often dead or unavailable


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Assets In A Will

A will can be simple or detailed– Some assets with beneficiaries pass outside a will

Assets with beneficiaries– Life insurance policies– Pension funds– IRA’s

Review beneficiary designations annually or when things change


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Beneficiary Designations

Life Insurance IRA’s (Individual Retirement

Account) POD (Pay-on-death) TOD (Transfer-on-death) Other

“ Will ” your property to a person or institution after death


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Changing A Will

Change a will upon:

– Marriage, remarriage, or divorce

– Birth of a child

– Move to another state

– Acquisition of additional assets

– Changes in federal and state laws


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Effect of Divorce on Will

Add state specific laws, for example:

A divorce in some states revokes the entire will while in another state it revokes only those provisions in the will in favor of the divorced spouse.

Replace this with your state laws. You may need to add another slide to continue with state laws.

State Specific


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What is a Trust?

Legal arrangement Property held by one person for benefit of

others Property managed by a trustee


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Why Have a Trust?

Supplement for a will Avoids probate To provide structure for beneficiaries who

might not be able to handle their own affairs


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Types of Trusts

Living trust– Revocable or irrevocable

Testamentary trust– Revocable until death or incapacity


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Should I Have a Living Trust?

PRO:

Avoids Probate Can administer property in different states

with one document Can manage affairs during life Beneficiary may receive assets faster Privacy

Individual Decision


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Should I Have a Living Trust?

CON:

Expensive to draft – Expense of updates

– Costs can outweigh the

benefits

Not court supervised On-going need to update

Individual Decision


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Estate Planning Scams!

Beware of aggressive sales pitches– Save thousands of dollars

– Falsely inflate cost and burden of probate

– Falsely imply product is sold by reputable group

Consult an attorney


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Generic Will Kits and Forms

Perceived advantages:– Widely available on the internet, in

bookstores, in office supply stores, etc.– May be simple to use and lower in cost than

a private attorney


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Generic Will Kits and Forms

Warning: Have an attorney review any will you prepare yourself – Limited income consumers may utilize

services such as legal aid


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Disadvantages of Generic Will Kits and Forms

Some situations are more complicated and may require an attorney’s expertise

Materials condensed and simplified, leaving out details for unusual situations

Materials written to cover laws for entire nation, but cannot cover every jurisdiction

Laws constantly revised, and may require a different form or information


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Joint Ownership: How Property is Titled

Community Property

Joint Tenancy with Rights of Survivorship

Tenancy-in common

Tenancy-by-entireties

State Specific


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Joint Ownership:Issues to Consider

If you want to sell If one of the owners dies If joint owner is sued If a judgment is entered against the property If joint owner is divorced


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Estate Planning: Farmers and Family Business

Owners

Family businesses often experience unique circumstances and issues

Can provide for the gradual transfer of a farm enterprise – minimizing higher estate taxes


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May require a team effort including family, financial, farm management, tax, and legal expertise

Consult knowledgeable estate planning professionals

Estate Planning: Farmers and Family Business

Owners


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Steps to Getting Started

Know what you have and where it is located

Know what you want to do with your property

Know how to provide for distribution of your property

Put your plan on paper

My importantPapers- will- birth certificate- passport---


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Begin Planning

Plan for preparation of a will Assess your estate planning needs Review your present financial situation Prepare an inventory of your assets and your liabilities Organize information in folders or a three

ring binder


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Make a commitment now to locate and organize your important

records and information, and to prepare a will.

Please complete seminar written evaluation before leaving. Thank You


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Legally Secure Your Financial Future

Questions?


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Credits

This lesson was developed by the

Legally Secure Your Financial Future:

Organize, Communicate, Prepare team.

This is a program of the Cooperative Extension

Financial Security in Later Life national initiative.

Information is available at www.csrees.usda.gov/fsll

prepare advice from an attorney. name of facilitator, title, organization name of attorney legally...

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