THOUGHTS ABOUT THOUGHTS ABOUT

THE ESTATE THE ESTATE PLANNING PLANNING PROCESS PROCESS

Presented by:Presented by:Mary E. Vandenack, Esq.Mary E. Vandenack, Esq.

Parsonage Vandenack Williams LLCParsonage Vandenack Williams LLC5332 S. 138th Street5332 S. 138th Street

Omaha, NE 68137Omaha, NE 68137(402) 504-1300(402) 504-1300

mvandenack@pvwlaw.comwww.pvwlaw.com

© 2009 Parsonage Vandenack Williams LLC© 2009 Parsonage Vandenack Williams LLC

For more information, contact info@pvwlaw.comFor more information, contact info@pvwlaw.com

Mary E. VandenackMary E. VandenackMary E. Vandenack is a founding member of the law firm of Parsonage Mary E. Vandenack is a founding member of the law firm of Parsonage Vandenack Williams LLC. Mary practices in the inter-related areas of tax, Vandenack Williams LLC. Mary practices in the inter-related areas of tax, business, real estate, health care and estate and business succession business, real estate, health care and estate and business succession planning. Mary excels at dealing with the issues of closely held businesses planning. Mary excels at dealing with the issues of closely held businesses (whether an international operation or a one person shop). In the health (whether an international operation or a one person shop). In the health care arena, Mary regularly represents physicians, physician organizations, care arena, Mary regularly represents physicians, physician organizations, health care facilities, group health plans, ambulatory surgery centers, health care facilities, group health plans, ambulatory surgery centers, billing companies, pharmaceutical companies, and specialty health care billing companies, pharmaceutical companies, and specialty health care providers. In the general business arena, Mary has significant experience providers. In the general business arena, Mary has significant experience working with real estate developers, real estate investors, real estate working with real estate developers, real estate investors, real estate management companies, contractors, and companies in the tele-management companies, contractors, and companies in the tele-communications, information technology, construction, engineering,  agri-communications, information technology, construction, engineering,  agri-business, financial, and manufacturing industries. Mary's work with closely business, financial, and manufacturing industries. Mary's work with closely held businesses and their owners has also provided numerous held businesses and their owners has also provided numerous opportunities to provide service involving complex estate planning opportunities to provide service involving complex estate planning strategies as well as in the non-profit area.strategies as well as in the non-profit area.

Mary graduated magna cum laude from Creighton University School of Law Mary graduated magna cum laude from Creighton University School of Law in 1992, where she served as Editor-in-Chief of the Creighton Law Review, in 1992, where she served as Editor-in-Chief of the Creighton Law Review, won a Domestic Moot Court competition as Best Oral Advocate, and was won a Domestic Moot Court competition as Best Oral Advocate, and was inducted into the Alpha Sigma Nu Honor Society. Mary received her inducted into the Alpha Sigma Nu Honor Society. Mary received her Bachelors Degree in Business and Accounting, summa cum laude, from Bachelors Degree in Business and Accounting, summa cum laude, from College of Saint Mary.College of Saint Mary.

Recently, Mary was nominated as a “Woman of Distinction in Omaha Recently, Mary was nominated as a “Woman of Distinction in Omaha Business” and was named one of Omaha’s Best Dressed Professionals by Business” and was named one of Omaha’s Best Dressed Professionals by Strictly Business Magazine. Mary is featured in Metro Magazine bi-monthly Strictly Business Magazine. Mary is featured in Metro Magazine bi-monthly regarding estate planning topics. regarding estate planning topics.

Mary regularly speaks and writes in her practice areas. Mary is active in Mary regularly speaks and writes in her practice areas. Mary is active in the national bar association promoting the use of technology in the the national bar association promoting the use of technology in the practice of law and in improving the cost effectiveness and efficiency of practice of law and in improving the cost effectiveness and efficiency of legal services. In addition, Mary is a member of various task forces legal services. In addition, Mary is a member of various task forces promoting changes in legislation and regulations governing tax, business promoting changes in legislation and regulations governing tax, business and health care.and health care.

In her spare time, Mary shares her love for health and wellness by In her spare time, Mary shares her love for health and wellness by teaching aerobics, weight training, pilates, and yoga to adults, seniors and teaching aerobics, weight training, pilates, and yoga to adults, seniors and children.children.

The Estate Planning The Estate Planning Team Team

The exact team depends The exact team depends on estate size, on estate size, complexity, and complexity, and particular issues of the particular issues of the estate.estate.

Team members may Team members may include the following:include the following:

AttorneyAttorney CPACPA Investment Manager Investment Manager BankerBanker Insurance AgentInsurance Agent Trust OfficerTrust Officer Non profit ManagerNon profit Manager Key Business ManagerKey Business Manager Member of Clergy or Other Member of Clergy or Other

ConfidanteConfidante

The Estate Planning The Estate Planning TeamTeam

For very large estates, For very large estates, some investment some investment management firms and management firms and major banks have major banks have individuals whose sole individuals whose sole role is to quarterback the role is to quarterback the overall teamoverall team

The Estate Planning The Estate Planning TeamTeam

For the smaller estate, For the smaller estate, less professionals may be less professionals may be involved and roles will involved and roles will have more overlap.have more overlap.

Investment Management Investment Management OptionsOptions

Family Business OfficeFamily Business Office Various Advisors with Various Advisors with

different types of expertisedifferent types of expertise Manager of ManagersManager of Managers Individual ManagerIndividual Manager Estate Structure and the Estate Structure and the

client are key to client are key to determining the fitdetermining the fit

Attorney and Attorney and AccountantAccountant

Ascertain knowledge and Ascertain knowledge and experience related to experience related to estate planningestate planning

Estate planning requires a Estate planning requires a wide variety of specialized wide variety of specialized knowledgeknowledge

The Estate Planning The Estate Planning TeamTeam

A good estate planning A good estate planning team includes a team includes a quarterback and a quarterback and a

client-focused teamclient-focused team

When to Review Your When to Review Your Estate PlanEstate Plan

A move to another stateA move to another state A significant change in A significant change in

assets (including an assets (including an inheritance)inheritance)

A change in family A change in family situationsituation

RetirementRetirement Law changesLaw changes At least every three yearsAt least every three years

The “Issues” in the Estate The “Issues” in the Estate Planning ProcessPlanning Process

Aging, Illness, DisabilityAging, Illness, Disability DeathDeath ChildrenChildren MoneyMoney

Key Skills in Managing the Key Skills in Managing the Estate Planning Estate Planning ProcessProcess

Recognizing the Recognizing the Emotional Impact of the Emotional Impact of the IssuesIssues

Key Skills in Managing the Key Skills in Managing the Estate Planning Estate Planning

ProcessProcess Understand the Client Understand the Client

• The Client’s Desired Plan The Client’s Desired Plan • Define the GoalsDefine the Goals

Key Skills in Managing the Key Skills in Managing the Estate Planning Estate Planning

ProcessProcess Get to know the client Get to know the client

• A client is unlikely to share A client is unlikely to share the details of his or her the details of his or her child’s drug abuse child’s drug abuse problems with a girl in a problems with a girl in a suit at a first meeting.suit at a first meeting.

• Establish rapport. If Establish rapport. If rapport is unachievable, be rapport is unachievable, be willing to involve someone willing to involve someone else.else.

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning Process

Know the deterrents to Know the deterrents to the estate planning the estate planning process and how to process and how to manage themmanage them

• CostsCosts• Results are intangible Results are intangible • Emotional impact of confronting Emotional impact of confronting

death nowdeath now• Personal time expenditurePersonal time expenditure• Proper planning is detailed and Proper planning is detailed and

complex complex • Estate planning is about death, Estate planning is about death,

money and familymoney and family

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning ProcessIdentify the goals that are most important to the Identify the goals that are most important to the

client. Some possibilities are:client. Some possibilities are:

• Provide for client Provide for client for balance of for balance of his/her life his/her life

• Provide for Provide for spouse or partnerspouse or partner

• Provide for Provide for childrenchildren

• Provide for Provide for grandchildrengrandchildren

• Education of Education of children, children, grandchildrengrandchildren

• Protect a family Protect a family businessbusiness

• Asset Distribution Asset Distribution • Provide for heirs Provide for heirs

with special with special needs needs

• Provide for a petProvide for a pet• Make a gift to Make a gift to

charity charity • Asset protectionAsset protection• Medicaid Medicaid

planningplanning• Disability Disability

planningplanning• Minimize death Minimize death

taxes taxes • Minimize Minimize

administration administration expenses expenses

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning Process

Skills needed to work Skills needed to work with the emotional with the emotional aspects of the processaspects of the process

• The word “counselor” The word “counselor” appliesapplies

Do not get emotionally involvedDo not get emotionally involved

• Listening Listening • AwarenessAwareness• Experience is irreplaceable Experience is irreplaceable

in the process. If you don’t in the process. If you don’t have it, include it on the have it, include it on the team.team.

• AcceptanceAcceptance

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning Process

Skills needed generallySkills needed generally• Have your own house in order Have your own house in order • Knowledge of the Estate Planning Knowledge of the Estate Planning

Process and its toolsProcess and its tools• Have lots of Have lots of

contacts/relationships/resources contacts/relationships/resources regarding tax, investment, real estate, regarding tax, investment, real estate, accounting, business, insurance, accounting, business, insurance, valuation, charitable techniques, etc. valuation, charitable techniques, etc.

• You can’t be everything to everyone You can’t be everything to everyone so have the resources to create a so have the resources to create a team that can be everythingteam that can be everything

• Ability to explain complex topics in Ability to explain complex topics in simple terms in a matter of fact waysimple terms in a matter of fact way

• Use written explanations and visual Use written explanations and visual aids (flowcharts, spreadsheets) all the aids (flowcharts, spreadsheets) all the time time

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning Process

Dealing with Team MembersDealing with Team Members • The quarterback should be the one who The quarterback should be the one who

has the ability to stay totally focused on has the ability to stay totally focused on client goals and who can lead the rest of client goals and who can lead the rest of the team to plan in a way that the team to plan in a way that accomplishes the goalsaccomplishes the goals

• Define roles clearly, in writing Define roles clearly, in writing • Determine who should be included in what Determine who should be included in what

aspects of the process and communicate aspects of the process and communicate about that. Every meeting does not about that. Every meeting does not require every team memberrequire every team member

• Follow through and follow up Follow through and follow up • Recognize inherent biases Recognize inherent biases

Key Skills in Managing the Key Skills in Managing the Estate Planning ProcessEstate Planning Process

Dealing with Family Dealing with Family MembersMembers

Key focus is the client whose Key focus is the client whose estate is being plannedestate is being planned

• Family members should Family members should generally not be included generally not be included early in the planning early in the planning process unless there is a process unless there is a specific reasonspecific reason

• Get to know family Get to know family dynamics before jumping dynamics before jumping in in

ESTATE PLANNING ESTATE PLANNING TOOLSTOOLS

Basic willBasic will Probate avoidance trustProbate avoidance trust ““Living Trust”Living Trust”

• Credit shelter planningCredit shelter planning• QTIP planningQTIP planning

Power of attorney for legal issuesPower of attorney for legal issues Advance directivesAdvance directives

• Power of attorney for health carePower of attorney for health care• DeclarationDeclaration

Trusts for minorsTrusts for minors Educational accountsEducational accounts Custodial accountsCustodial accounts Premarital AgreementsPremarital Agreements Special Needs TrustsSpecial Needs Trusts

ESTATE PLANNING ESTATE PLANNING TOOLSTOOLS

Family FoundationsFamily Foundations Retirement AccountsRetirement Accounts AnnuitiesAnnuities Life Insurance TrustsLife Insurance Trusts Real Estate PartnershipsReal Estate Partnerships Long Term Care CoverageLong Term Care Coverage Prepaid Funeral PlansPrepaid Funeral Plans Conduit TrustsConduit Trusts Asset Protection TrustsAsset Protection Trusts Generation Skipping TrustsGeneration Skipping Trusts Dynasty TrustsDynasty Trusts Family Limited PartnershipsFamily Limited Partnerships Charitable Remainder TrustsCharitable Remainder Trusts Grantor Retained Annuity TrustsGrantor Retained Annuity Trusts

For the PVWLaw Guide to For the PVWLaw Guide to Estate Planning and Estate Planning and

Information List to assist in Information List to assist in assembling estate planning assembling estate planning

data, go to:data, go to:

www.pvwlaw.com www.pvwlaw.com