Post on 13-Jan-2022
© 2018 Kavesh, Minor & Otis, Inc.1
The Top Ten Estate Planning MistakesPresented by:
The Law Firm of Kavesh, Minor & Otis, Inc.
© 2018 Kavesh, Minor & Otis, Inc.
The Law Firm of Kavesh, Minor & Otis
Specializes in Estate Planning and Administration
37th Year in Business
One of the Largest Estate Planning Firms in California
Three State Bar Certified Specialists on Staff
Two Attorneys with Advanced Degrees in Tax Law
Handled over 4,000 Estate Administrations
Recognized as Authorities by Fellow Professionals and Leading Publications
Offices Located Nearby
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Our Ground Rules
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The Top Ten Estate Planning Mistakes
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Death Probate
“Living Probate” too!
Unwanted Court interference, delays, expenses and publicity
Wills, joint tenancy (probate avoidance alternatives) don’t necessarily avoid Court!
The preferred estate planning vehicle for most people: The Living Trust
#10. Letting Your Family Go To ____________!Probate Court
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What is a Living Trust?
A legal document, similar to a will
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After Signing the Trust, A Second Step Occurs
You = Trustors (Creators) You = Trustee
Your Living Trust
You = Beneficiary
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During Your Lifetime, It’s Business as Usual
…YOU ARE IN CONTROL
And Your Living Trust is Amendable and Revocable!
It’s Merely a “Standby” Vehicle(That Avoids Stopping at the Court “Filling Station”)
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Will Your Living Trust Actually AvoidConservatorship & Probate?
Did you get all of your assets into the Trust?
What about later acquired?
Did you refinance any real estate?
Why typical Internet, do-it-yourself and bargain Trust plans DO wind up in Court!
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You don’t think this will happen to you
Are you missing the proper HIPAA Authorization?
Do you have the latest Health Care Document?
Do you have a Health Document Emergency Card?
Do you have the “New Age” Power of Attorney?
#9. Failing to Address What Will HappenWhen You’re ________! Disabled
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If you need Long Term Care, what will it cost?
Could you qualify for Medi-Cal benefits?
Do your Trust and Power of Attorney allow you to get Medi-Cal?
#9. Failing to Address What Will HappenWhen You’re ________! Disabled
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Can they be trusted to handle a big pile of cash?
Trust your Trust instead! (Have it continue)
#8. Not Protecting Your Beneficiariesfrom __________! Themselves
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Particularly, if your beneficiaries are:Too youngElderly, ill, disabled or have drug or alcohol problemsNot good at handling moneyReceiving needs-based government benefitsShould you appoint a Professional Trustee or Co-Trustee?Does the continuing Trust for each of these beneficiaries have
the flexibility to adapt after you’re gone?
#8. Not Protecting Your Beneficiariesfrom __________! Themselves
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“But, Phil, I only have Grade A Beneficiaries!”
#7. Not Protecting Your Beneficiariesfrom ___________! Third Parties
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Your beneficiary may be capable of handling money, but what about:
A beneficiary’s spouse taking your inheritance in a divorce?Bad luck, creditors and bankruptcy?Lawsuits- Valid or bogus?The government forcing your inheritance to be spent or paid over?Even if none of these happen, a possible second Estate Tax
#7. Not Protecting Your Beneficiariesfrom ___________! Third Parties
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Even When the Beneficiary is Capable of
Handling on His/Her Own!
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Beneficiary can manage, control, and have access to it
Offers greater asset protection (and minimizes income taxes)
There’s a Better Way:The “Personal Asset TrustSM”
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Living Trust
Spouse/Divorce Lawsuits Second Estate Tax
Poor Financial Decisions Spouse/Divorce
Creditor/Bankruptcy Losing Gov. Benefits or
Paying Back
PAT PAT PAT
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So Unique, We License It to Other Attorneys!
This Personal Asset TrustSM is Recommended (Standard Equipment) in Every New Living Trust
We Build!
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These May Be Your Potentially Largest Assets, Yet Left Unprotected by Your Living Trust!
#6. Thinking Your Living Trust Covers Your_____________________! IRAs & Retirement Plans
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Most Estate Plans Don’t Address the Complex IRS Distribution and Taxation Rules
Potential “stretchout” for non-spouse beneficiaries50-year-old child inherits $200,000 IRA,
growing at 6%In 30 years, he/she may take out over
$700,000 (required minimum distributions)Still have almost $300,000 in accountMay be the difference between your loved
one retiring or not!
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Think of the IRA Inheritance Trust®
as a “Living Trust for Your IRASM”
Both stretchout and protection
You should consider it if you (and your spouse) have IRAs and other Retirement Plans totaling over $150,000!
Even if you don’t get an IRA Trust, be sure you properly designated your beneficiaries!
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#5. Overlooking Other _______ Tax Issues !Income
Income Tax is the new Estate Tax!
Unfortunately, many plans don’t address
May reduce Income Tax for the surviving spouseObtain full “step-up” in basis without getting a court orderFully utilize special capital gains exclusion on sale of the home
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May reduce Income Tax for your other beneficiariesGet full “step-up” in basis at surviving spouse’s deathGet another full “step-up” at first beneficiary’s death
We fix old Trusts!
#5. Overlooking Other _______ Tax Issues !Income
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#4. Believing the Person(s) Who You Name to Act asTrustee Will Know __________.What to Do
Most people named to act as Trustee have never done it before
The Living Trust does have a negative - no Court supervision
The Trustee can have personal liability, out of own pocket, if he/she messes up
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Do You Have (or Will Get) an “Owner’s Manual”?
Immediately Accessible Copies of your Estate Plan Documents
Trust Flow Chart Checklist of 18 Immediate
Actions Personal Directions Letter Location List Contact List Seminar DVD
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Do You Have (or Will Get) a “Successor Trustee Manual”?
For use after the first Immediate Actions are handled
Plain-English Checklists for your Successor Trustee (including your spouse) to avoid the “Pitfalls for the Unwary”
Quick-Start DVD
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#3. Not Keeping Up with ________!Changes
In your wishes
In your relationships with Trustees and beneficiaries
In the needs and circumstances of your beneficiaries
In the Tax and Trust Laws
In estate planning “techniques”Should you name a Professional Trustee or Co-Trustee?
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#2. Not protecting your Trust vehicle with a ___________!Service Plan
Our Unique FREE Service Plan
Free phone calls to answer your questions Free periodic newsletter to keep you informed Special Notices and seminars as
law and planning changes Discount on Future Fees Free Checkup Meeting
every 3 years Free Trustee training and post-death meeting
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#1. “I understand how important it is to properlytake care of my estate plan, but I’m too ______!
“Procrastination” is the silent killer of estates!
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Are You Making (or Want to Avoid) These Mistakes?
Where Do You Go From Here?
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We offer a FREE attorney consultationand fixed fee quote, but…
WOULD YOU LIKE A DISCOUNT?
Fill out and turn in the Response Form
Come in to see us within the next 3 weeks
Special discount thanks to F&M Bank, not available to the general public
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PROCRASTINATION
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ANY QUESTIONS?
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