Estate Planning Essentials Updated for 2016 Your Host

Estate Planning Essentials Updated for 2016 Your Host: (Insert Name) 1

TONIGHT’S AGENDA § Overview of Estate Planning Essentials § 4 Quick Steps to Update Your Estate Plan § Questions & Answers Ø All information provided is meant for illustrative purposes only. Individual situations will vary so please consult an attorney and tax professional to address your specific situation. 2

FIVE KEY AREAS OF FINANCIAL PLANNING n n n Protection Retirement Plan Investments Tax Planning Estate Planning 3

ESTATE PLANNING ESSENTIALS “It has often been said that most people want to go to heaven, but nobody wants to die!”

ESTATE PLANNING ESSENTIALS The primary purpose of Estate Planning is to preserve your wealth and try to assure that it is transferred to your designated beneficiaries at the time and in the manner of your choice at very reasonable costs with the least amount of pain and suffering.

ESTATE PLANNING OBJECTIVES CAN BE GROUPED INTO 2 MAJOR CATEGORIES : ü Financial ü Non-Financial 6

ESTATE PLAN IS USUALLY APPROPRIATE IF. . . q You have minor children. q You are concerned about becoming incapacitated in the future. q You own a business. q You have an estate large enough to be subject to estate taxes. 7

ESTATE PLAN IS USUALLY APPROPRIATE IF. . . q You have specific assets or amounts that you want to pass on to beneficiaries in a particular way. q You own property in more than one state. q You are in a nontraditional relationship and/or your immediate relatives are NOT your intended beneficiaries. 8

FAILURE TO HAVE A PROPER ESTATE PLAN COULD RESULT IN. . . q Having the wrong people inherit your property or wealth. q Having your property or assets transferred in the incorrect form. q Improper ownership of assets. q Having to pay more income taxes than necessary. q Not maximizing your use of estate tax exemptions. 9

FAILURE TO HAVE A PROPER ESTATE PLAN COULD RESULT IN. . . q Having your children inherit wealth intended for your spouse. q Having your spouse inherit your wealth when it was intended for your children. q Lengthy or unnecessary court proceedings to divide, manage, or distribute your assets. q Court appointed financial or health decisions made on your behalf. q Not being able to change the current person 10

ESTATE PLANNING ESSENTIALS Critical things to do for Estate Planning 11

ESTATE PLANNING ESSENTIALS Create or amend your Will 12

ESTATE PLANNING ESSENTIALS Create or amend your Durable Powers of Attorney for both medical wishes and financial activities 13

ESTATE PLANNING ESSENTIALS Establish a revocable living trust if appropriate 14

ESTATE PLANNING ESSENTIALS Confirm you have the correct beneficiaries on all of your retirement accounts and life insurance policies. Confirm that they match the beneficiaries in your estate plan. 15

ESTATE PLANNING ESSENTIALS Review titles on all of your nonretirement assets. Remember – joint tenants will override everything, including your will, trust or other estate plan. 16

ESTATE PLANNING ESSENTIALS Create Letter of Instructions q Addresses specific personal requests not in will q Open it in case of severe illness or post-mortem q Use this document as financial road map - Shows location and details of important documents 17

ESTATE PLANNING ESSENTIALS End Of Life Decisions Make sure family members know what you want them to do. Family members don’t have to guess what you wanted. Express your wishes with advancedcare directives including: - Living will - Medical durable power of attorney - Death bed issues 18

DO NOT FORGET PERSONAL AND NON-FINANCIAL PROPERTY 19

ESTATE PLANNING ESSENTIALS Safely store ALL of your KEY documents! 20

HOW HAVE FEDERAL ESTATE TAXES CHANGED? PRE-PRESIDENT BUSH $1, 000 2014 $5, 340, 000 2015 $5, 430, 000 2016 $5, 450, 000

SUMMARY OF 2016 RULES q Maximum Estate Tax rate is 40% q Applicable exclusion amount is $5, 450, 000 for 2016. (This exemption is a lifetime amount) q Portability remains permanent. q Annual gift tax exclusion is $14, 000 per recipient per donor per year. 22

IMPORTANT ROLES • • Beneficiary Surviving Spouse Executor Inheritor 23

HELPFUL CHECKLISTS Surviving Spouse’s Checklist 24

HELPFUL CHECKLISTS Executor’s Checklist 25

HELPFUL CHECKLISTS Inheritor’s Checklist 26

4 QUICK STEPS TO UPDATING YOUR ESTATE PLAN 1. Assess Your Current Financial Situation. This can include: § Listing all of your assets. § Determining the exact ownership of each asset – look at title. § Reviewing all of your beneficiary forms on each asset. § Determining who you would like to provide for. § Providing adequate coverage for your spouse and dependants. 27

4 QUICK STEPS TO UPDATING YOUR ESTATE PLAN 1. Assess Your Current Financial Situation. This can include: § Determining how you would like your property and assets divided. § Protecting your assets from creditors. § Evaluating sale or succession plans for businesses you own. § Reducing your taxable estate values. § Organizing all of your personal records. 28

4 QUICK STEPS TO UPDATING YOUR ESTATE PLAN 2. Identify Planning Alternatives. This can include: § § § § § Drafting a will Creating a durable power of attorney Signing a health proxy Naming guardians for under aged children Selecting an executor and/or trustee Considering the form and amount of property left to KEY dependants (especially your spouse) Looking into usage of the estate tax exemption amount Review gifting possibilities Creating trusts Identifying a trusted family member or friend 29

4 QUICK STEPS TO UPDATING YOUR ESTATE PLAN 3. Implement your Estate Plan. This can include: § § Having an attorney draft or review/amend documents. Creating a flow chart to illustrate how you would like assets to transfer. § Determining the best way to pay estate taxes (if appropriate). § Signing all necessary documents. § Having a family meeting. § Developing a personal list of requests. 30

4 QUICK STEPS TO UPDATING YOUR ESTATE PLAN 4. Monitor your Estate Plan. This can include: § Reviewing your plan periodically – usually once every year. § Reviewing your plan as your objectives change. § Reviewing your plan as your personal life changes. § Reviewing how changes in Estate Tax or Income Tax affect your situation. 31

DOCUMENTS THAT COULD BE HELPFUL r e w o P e l y b e ra torn u D At of Will e r a C h t l Hea roxy P Other Trusts Re Liv voc ing ab Tr le us t Ma rrie Agr d Pr eem ope ent rty Beneficiary Designation Form 32

WE REVIEW CHANGES FOR OUR CLIENTS REGULARLY! 33

WHAT CAN YOU EXPECT FROM US? üConstant communication. üFrequent discussions. üWe are constantly reviewing economic, tax and investment issues for our clients. 34

OUR ROLE AS YOUR ADVISOR § We won’t be making panicky decisions § We will maintain a non-emotional objective § We will avoid knee-jerk reactions § We will assist you in making decisions that are always in your best interest! - and § WE WILL BE HERE FOR YOU !!!! 35 35

AVAILABLE TODAY § § Article Newsletter 36

AVAILABLE SOON Our Next Quarterly Economic Report 37

HELP US HELP OTHERS ! 38

THANK YOU ! We appreciate the opportunity to assist with YOUR Financial Needs ! 39

ANY QUESTIONS? 40

The views expressed are not necessarily the opinion of (insert broker-dealer) Information is based on sources believed to be reliable, however, their accuracy or completeness cannot be guaranteed. This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Contents provided by the APFA, Inc. Copyright 2016 APFA, Inc. 41