1. WhatYou Need to
Know About
Estate Planning™
Jim Eagar
Attorney & Counsellor at Law
Part 2
Wednesday, October 9, 13

2. Quick Review
3 Step
Process
Wednesday, October 9, 13

3. People Are
Different
#1 - Base Your
Plan on
Counseling, not
Word Processing
Wednesday, October 9, 13

4. Things
Change
#2 - Be Part of a
Formal Update &
Education
Program
Wednesday, October 9, 13

5. We’re All
Going to Die
#3 - Plan for a
Controlled
Transfer Process
Wednesday, October 9, 13

6. Estate Planning
Problems to Solve
1. Mental Disability Planning
2. Transfer Assets at Death
3. Avoid Estate Taxes
4. Personal Planning Goals
Wednesday, October 9, 13

7. Estate Planning
Options
• No Documents (Joint Tenancy)
• Simple Will & Power of Attorney
• Basic Living Trust & POA
• Family Lifetime Planning
Process™
Wednesday, October 9, 13

8. 1. Disability Protection
Wednesday, October 9, 13

9. No Planning = “Living Probate”
• Loss of Control to Judge
• When I’m disabled
• Who will control
• What they can do
• High Cost of Conservatorship
Wednesday, October 9, 13

10. Problems with POAs
• Blank Check
• No Instructions
• No Reporting
Requirements
• Springing or Immediate
Wednesday, October 9, 13

11. Bare-Bones Trusts
• Depend on POA
• No Instructions
• Basic Planning
Wednesday, October 9, 13

12. • How/Who Makes the Decision
• Private Transfer to WhoYou Select
• Personalized Instructions forYour Care
• Personalized Design Session
Family Lifetime
Planning Process™
Wednesday, October 9, 13

13. 2. How Assets Transfer
• Contract
• Operation of Law
• Probate
• Living Trust
Wednesday, October 9, 13

14. Everything in Estate Planning
Comes Down to Title!
•Tax Savings
• Personal Protections
• Disability Protection
• Remarriage Protection
• Divorce Protection
• Creditor Protection
Wednesday, October 9, 13

15. • Two Things to Know:
• Unlimited Marital Deduction
“Bill Gates”
• The “Coupon”
Federal & State Exemptions
3. Estate Tax Reduction
Wednesday, October 9, 13

16. A Trip to the IRS
Supermarket
Husband Wife
Wednesday, October 9, 13

17. • Property in the supermarket is subject to
Estate Tax
• Property out in the parking lot is NOT
subject to Estate Tax
• Goal: Get Property out in the parking lot!
Estate Tax Reduction
Wednesday, October 9, 13

18. •Coupon Amount
•Credit Shelter
Trust
•B Trust
•Bypass Trust
The Family Trust
Family
Trust
Wednesday, October 9, 13

19. •Split Decedent’s Estate into Two Trusts
•Transfer up to Coupon amount in Family
Trust, put excess in Marital Trust
Trustee Instructions
Marital
Trust
(Tax Deferred)
Family
Trust
(Tax Free)
Wednesday, October 9, 13

20. •Things Change
•Ability for limited change
after 1st Death
Limited Power of Appointment
Wednesday, October 9, 13

21. Tax Savings
Determined By:
• The Amount of
the Coupon
(Applicable
Exclusion
Amount)
• The Funding of
the Family
Trust
Family
Trust
Wednesday, October 9, 13

22. Marital
Trust
Family
Trust
RLT
Husband Wife
Joint
Insurance
401(k)
IRA
Wednesday, October 9, 13

23. Marital
Trust
Family
Trust
Will
Husband Wife
Joint
Insurance
401(k)
IRA
Wednesday, October 9, 13

24. Personal Instructions
for Clients
• Easier to Edit than Create
• Design Process: Education/Choices
• Checklists for:
• Health Care Decision-Making
• Final Arrangements
• Guardian Instructions
Wednesday, October 9, 13

25. Personal Instructions
for Beneficiaries
•Protection Against Life Risks
•Transfer ofValues:
•Personal Guidance & Instructions
•Family Legacy
Wednesday, October 9, 13

26. Life Risks
for Beneficiaries
•Lack of Financial Discipline
•Lack of Financial Experience
•Failed Marriage
•Remarriage of Surviving Spouse
•Catastrophic Creditors
Wednesday, October 9, 13

27. Inheritance Reception
A formal process designed to assure you
and your loved ones that your true
wealth is realized, efficiently transferred
and effectively received
Wednesday, October 9, 13

28. Access & Control
You WantYour
Benficiaries to :
•Access
inheritance
•Control
inheritance
Wednesday, October 9, 13

29. Trust Protection Mindset
At What Age is it
OK for:
•Ex-Spouse to
get 50% of
inheritance?
•Creditor to
get all of the
inheritance?
Wednesday, October 9, 13

30. Trust Design
•Access and Control by Beneficiary
•Protections from Divorce &
Creditors
•Watching Both Ways When
Crossing the Street
•Balancing Access and Control
Wednesday, October 9, 13

31. Trust Design
•Access and Control by Beneficiary
•Protections from Divorce & Creditors
•Customized Instructions to Fit
Beneficiary
Leaving Inheritance Inside of
Protective Trust Provides:
Wednesday, October 9, 13

32. • Appropriate Trust Design Balances Access
& Control with Personal Protections
• After Education, Most Choose a
Protective Trust (“school bus trust”) even
for Adult Beneficiaries
Wednesday, October 9, 13

33. •People are Different
•Things Change
•We’re all Going to Die
Why Plans Don’t Work
Wednesday, October 9, 13

34. Need A Process!
Wednesday, October 9, 13

35. Three-Step
Process
#1
Counseling,
not Word
Processing
Wednesday, October 9, 13

36. Three-Step
Process
#2
Formal Update &
Education
Program
Wednesday, October 9, 13

37. Three-Step
Process
#3
Plan for a
Controlled
Transfer Process
Wednesday, October 9, 13

38. 3 Levels of Service
• Basics Plan
• Foundational Plan
• Family Protective Plan™
Wednesday, October 9, 13

39. The Next Step
• Meeting
• (541) 244-2157
Wednesday, October 9, 13