Creating Your Legacy Creating Your Legacy For your

Creating Your Legacy

Creating Your Legacy For your spouse or “significant other” For your children/grandchildren For parents/siblings/other relatives For friends For important charitable causes

Estate Planning: More Than Just A Will Beneficiary Designation Right of Survivorship Transfer On Death/Pay On Death Deed Trust

WHAT IS A WILL? Disposes of Some Property Appoints Guardian for minor children Appoints Personal Representative Directs Payment of Debts and Taxes

REQUIREMENTS FOR A VALID WILL IN ARIZONA Holographic (handwritten) ◦ Testator’s Handwriting ◦ Signed by Testator Typed ◦ Signed by Testator ◦ Two Witnesses ◦ Notary? Valid Out-of-State Will is Valid in Arizona ◦ (but is it good? )

WHAT IS A CODICIL? Amendment to a Will Same Requirements as Will Attempting to change a Will without the “formalities” can backfire

ESTATE TAXES Tax Free Amount about $5, 000 ($10, 000 per couple) 40% on excess Unlimited Marital Deduction Unlimited Charitable Deduction

TYPES OF BEQUESTS Specific ◦ Dollar Amount ◦ Property Percentage Residuary

IF NO WILL? Intestate Distribution Married? • Children? • Nothing for Charity • Bond •

OTHER WAYS BESIDES WILL Revocable Living Trust Life Insurance Retirement Plan/IRA Annuity Transfer/Pay On Death (TOD/POD) Right Of Survivorship (JTROS/CPROS)

REVOCABLE LIVING TRUST Can save estate taxes for married couples with estate larger than exempt amount Useful for attaching “strings” His kids/Her kids Protection from beneficiaries’ creditors Avoids probate (but so do many other methods)

LIFE INSURANCE For individual beneficiaries, no income tax (but estate tax) Ownership to Charity ◦ Often, an old policy no longer needed ◦ Tax deduction for cash surrender value ◦ Continuing premiums? Beneficiary Designation to Charity ◦ No income tax deduction, but no estate tax ◦ Continuing premiums?

RETIREMENT PLAN/IRA/ANNUITY Income tax plus any estate tax Charity in zero income tax bracket Beneficiary Designation (vs. Will/Trust) Best asset to leave to Charity (as far as family is concerned) Remember to check Contingent Beneficiary designation – often overlooked

REAL ESTATE DEED JTWROS Beneficiary Deed (revocable) Life Estate/Remainder Interest (irrevocable)

TRANSFER ON DEATH (“TOD”) PAY ON DEATH (“POD”) TOD & POD: Same thing For bank accounts, brokerage accounts, mutual funds (not retirement plans/IRAs) Better than JTROS with parent/child Sample language ◦ “Ben Evolent, POD to Charity” ◦ “Phil Anthropist and Cherry Tibble, JTROS, POD of the survivor to Charity”

PLANNED GIFTS TO CHARITY Charitable Remainder Trust Charitable Lead Trust Charitable Gift Annuity

Thank You!