What s Inside the July 2013 Issue? Much Ado About A Lot. Potential Estate Planning Lessons from. James Gandolfini s Will

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1 HOWARD WIGHT S Financial Concepts Ideas That Will Help You Make A Difference Number 355 July 2013 Much Ado About A Lot James Gandolfini s will may ultimately be considered a virtual checklist of things to be avoided in estate planning. (File: Technique Book; Estate Planning/MDRT Index; ) Potential Estate Planning Lessons from James Gandolfini s Will Here is my interpretation of the lessons listed by tax attorney Robert W. Wood in an article that appeared in Forbes. (File: Technique Book; Estate Planning/MDRT Index; ) Quote from Tax Attorney Robert W. Wood Here is a worthy quote from Robert Wood. (File: Technique Book; Estate Planning/MDRT Index; ) The Information Pyramid Many successful people depend on people who have acquired book knowledge, but who lack the experience to be considered an expert. (File: Technique Book; Overview/ MDRT Index; ) What s Inside the July 2013 Issue? Much Ado About A Lot Potential Estate Planning Lessons from James Gandolfini s Will Quote from Tax Attorney Robert W. Wood The Information Pyramid The Information Pyramid (with Commentary) No One Has a Lease on Life or on Good Health Power Questions Random Thoughts on Life 2013 Howard Wight The Information Pyramid (with Commentary) Many people do not have a vision of what they want because they are unaware of the possibilities. (File: Technique Book; Overview/MDRT Index; ) No One Has a Lease on Life or on Good Health If you don t die before age 65, you will die after age 65. No one dies at the right time. (File: Technique Book; Overview/MDRT Index; ) Power Questions Ben Franklin said, People are best convinced by reasons they themselves discover. Questions are the keys to the doors of discovery. (File: Technique Book; Financial Data/MDRT Index; ) Random Thoughts on Life This page presents a collection of thoughts about life in general. (File: Technique Book; Miscellaneous/MDRT Index; )

2 Much Ado About A Lot James Gandolfini, the actor who gained fame as Tony Soprano in the hit TV series, The Sopranos, died at age 51 from a heart attack while on vacation in Italy. According to various sources, his estate has been estimated to be worth $70 million, and the estate taxes have been estimated to be around $30 million. Because his will is subject to public scrutiny, there has been a great deal of conjecture about poor estate planning. Had Gandolfini used a living trust coupled with a pour-over will, the details of his planning would not be available for critique. Most celebrities have avoided public disclosure by using a revocable living trust. His will was executed in December 2012, only a few months before in his death in June Here is a link to the will. The following is a summary of the major bequests: o 30% to his sister, Leta Gandolfini. o 30% to his sister, Johanna Antonacci. o 20% to his wife, Deborah Lin, to whom he was married since o 20% to his daughter, Liliana Ruth Gandolfini, who was born October 10, o $7,000,000 to his son, Michael, now 14 and living with his mother who was Gandolfini s first wife. This was accomplished using a life insurance policy on James Gandolfini owned by an irrevocable trust set up to avoid any estate tax. o Several family members and friends are left large bequests of cash. If Gandolfini were to have left his entire estate to his wife, there would be no estate tax. However, that would have been letting the tax tail wag the dog. From the will, it is apparent that he gave quite a bit of thought as to where he wanted things to go. As stated in an article in Forbes by tax attorney Robert W. Wood, Rich or poor, none of us want to be remembered for paying too much in taxes or giving our money away foolishly.

3 Potential Estate Planning Lessons from James Gandolfini s Will These six estate planning lessons represent a summary of the lessons contained in a Forbes article written by Robert W. Wood, tax attorney. 1. Keep it private. The fact that Gandolfini s will was subject to public scrutiny has helped fuel the fire from critics. This could have been avoided. 2. Use a revocable trust. Coupled with a pour-over will, a revocable trust could have been used to maintain privacy. 3. Think taxes, but not first. Think about the tax impact of any specific course of action, but don t let the tax tail wag the dog. 4. Consider tax efficient gifts and transfers. Life insurance owned by an irrevocable trust is a tax-wise way to transfer a substantial amount of money without its being subject to estate taxes. 5. Consider children s ages carefully. It may not be wise to have children receive a large amount of money as soon as they reach adulthood. Perhaps it should be spread out over time. 6. Foreign property is different. Property laws in other countries may differ from the laws in the United States.

4 Rich or poor, none of us want to be remembered for paying too much in taxes or giving our money away foolishly. Robert W. Wood Tax Attorney

5 The Information Pyramid Vision Experience Wisdom Knowledge Information Faith Data

6 Vision. Vision is your view of the future. What are your dreams? What are your opportunities? What do you want to create for yourself, your family, and your business over the next three, five, ten, and twenty years? What s really important to you? What are your lifetime goals...your primary priorities and values...your key concerns? What makes you tick? What makes you want to go to work in the morning? Excellent leaders should have a clear vision of what they want and where they are going. Leaders think bigger and inspire others. Most people do not have a clear vision because they are unaware of their possibilities. This is why they need an advisor. Wisdom. Wisdom is knowledge plus experience your own experience and experience borrowed from others. You don t have time to gain all the experience you need on your own. Have you developed any areas of expertise where people seek you out for your wisdom? Experience The Information Pyramid Vision Wisdom Knowledge Information Data Knowledge. Knowledge is actionable information. You ve probably heard the saying, knowledge is power. The truth is that knowledge is potential power. Knowledge plus action is power. All of the knowledge in the world is meaningless unless you put it to work. There is a big difference between book knowledge and applying it in the real world. Would you rather be operated on by the brain surgeon who recently graduated #1 in medical school or by the surgeon who is generally acknowledged to be one of the best in the world? Practical experience is incredibly important regardless of the field of expertise. Knowledge Faith Data. Data are merely a collection of letters and/or numbers without meaning unless further explanation is provided. Statistics, which can be manipulated, are a good example of data. The number 1,000,000 by itself looks interesting but has no meaning. $1,000,000 on a balance sheet representing the value of a specific asset has meaning, but, even so, more information is needed to give us a complete picture. evolves. Don t forget, it was once believed that the earth was flat. Information. Information has meaning. It includes facts, but it also includes misinformation, opinions, rumors, gossip, propaganda, outright lies, and theories that have not been proven. Some individuals present information so forcefully that others believe them regardless of whether or not the information is factual.

7 No One Has a Lease on Life or on Good Health Name Date of Death Age Cause of Death Diagnosis James Gandolfini Actor June 19, Cardiac arrest. Cory Monteith Actor July 13, Toxic mix of heroin and alcohol. Dennis Farina Actor July 22, Blood clot in lung while being treated for lung cancer. Randy Travis Country Music Singer 54 Stroke following diagnosis of congestive heart failure. Howard Wight Professional Speaker, Writer 74 Congestive heart failure. Sometimes we need to be reminded that no one has a lease on life...or on good health.

8 Power Questions I keep six honest serving men, they taught me all I know. Their names are What and Why and When and How and Where and Who. Rudyard Kipling o Tell me about yourself. How did you get where you are now? o What are your primary accomplishments up until now? o What are your lifetime goals? o When do you want to accomplish these goals? What deadlines have you established? o Why do want to accomplish these goals? What is your motivation? o How do you intend to accomplish your goals? What is your game plan? o Who are the players? For whom is the planning being done? Who are your advisors? o How much will it cost to accomplish your goals?

9 Random Thoughts on Life If you are ultimately going to do something important, why not do it now? The only way to make a difference in the world is to put ten times as much effort into everything as anyone else thinks is reasonable. It doesn t leave any time for golf or cocktails, but it gets things done. Admiral Hyman Rickover The only thing that can be done too often is nothing. If you want to sell a lot, ask good questions and really listen to the answers. If you want to talk a lot, do seminars. Anyone who isn t confused obviously does not know what s happening. Wisdom is not a commodity. Early to bed. Early to rise. Work like a dog, and prioritize. There are no shortcuts to any place worth going. Beverly Sills Expecting success is the first step toward making it happen. Too many freaks. Not enough circuses. Some people know the price of everything and the value of nothing. Plan and live each day as if it were your last. One day it will be. The ultimate master key to life, happiness, and success is to focus on first things first.

10 Caveats, Comments and Options Please do NOT copy this newsletter for your associates unless you have purchased the right to do so. This newsletter is copyrighted. HOWARD WIGHT S Copyrighted. This material is copyrighted. An subscription, which costs $147 per year, is intended for the sole use of the subscriber who may copy pages for prospects and clients only. Companies, agencies, and brokerage operations may purchase the rights to reproduce the newsletter or individual pages for agents, associates, or brokers, but may not do so without prior written agreement with Wight Financial Concepts Corporation. The investment for an agency to make copies for its agents is $997 per year, which includes the subscription. It s a real money maker! One good sale will recapture your investment. Companies may purchase subscriptions at a substantial discount. Call us for details. Consult your own professional advisors. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal or accounting services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Subscriber s responsibility. Subscribers are responsible for ensuring that the information they present to their clients is accurate and in compliance with state, federal and company regulations and that adequate disclosure is made. Filing. For those subscribers who have bought the TECHNIQUE BOOK, we suggest that you use the newsletter to keep it updated. Each page of the newsletter can be filed in the appropriate section, or you can establish a separate set of proposal files. Repetition, Reinforcement, and Timing. Repetition and reinforcement are the keys to learning, expertise, excellence, and success. We will repeat ideas from time to time but almost every time the idea will contain a new nuance. A great idea at the wrong time is no better than a bad idea. Timing is everything. The right idea at the right time can change a lifetime perhaps yours or that of a client. Ideas. If you are willing to share your ideas with others, please send them to Howard Wight, 1330 Jones Street, Suite 404, San Francisco, CA 94109, fax them to (415) , or call him directly at (415) Financial Concepts Filing Technique Book Section MDRT Index Overview Financial Data Investment & Tax Planning Estate Planning Business Planning Executive Benefits Insurance Planning Disability Income Misc. Motivation Misc. Efficiency Misc. Prospecting For Customer Service, Please Contact: Wight Financial Concepts Corporation P.O. Box Brooksville, FL Phone: SELL Fax: ideas@howardwight.com

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out the next illustration. (File: Technique Book; Insurance Planning/MDRT Index; ) HOWARD WIGHT S Financial Concepts Ideas That Will Help You Make A Difference Number 286 July 2007 Here s a quick overview of each page in this month s newsletter: What Is Your Market? Surgeons make more