Estate Planning Toolbox

Transcription

1 Estate Planning Toolbox

2 What tools are needed?

3 Blueprints

4 Genesis 1:1 1 In the beginning God created the heavens and the earth.

5 Psalm 24:1 1 The earth is the LORD s, and everything in it, the world, and all who live in it

6 Psalm 139:13-14 For you created my inmost being; you knit me together in my mother s womb. 14 I praise you because I am fearfully and wonderfully made; your works are wonderful, I know that full well.

7 Jeremiah 29:11 11 For I know the plans I have for you, declares the LORD, plans to prosper you and not to harm you, plans to give you hope and a future

8 Deuteronomy 8:17 17 You may say to yourself, My power and the strength of my hands have produced this wealth for me. 18 But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today

9 Job 1:21 Naked I came from my mother s womb, and naked I will depart. The LORD gave and the LORD has taken away; may the name of the LORD be praised.

10 John 14:1-3 2 My Father s house has many rooms; if that were not so, would I have told you that I am going there to prepare a place for you? 3 And if I go and prepare a place for you, I will come back and take you to be with me that you also may be where I am

11 Matthew 25:21 21 His master replied, Well done, good and faithful servant! You ve been faithful with a few things. I ll put you in charge of much.

12 Tool #1

13 What s the right balance for you?

14 Making decisions isn t easy!

15 I don t care what happens when I m gone!

16 I m Young. I have plenty of time! Accident Disease

17 I don t have anything! Guardians

18 I have everything in joint tenancy. Best solution? Next generation?

19 I can t afford to do it! List of items to include Alternative methods

20 I don t like thinking about it!

21 I know I should, I just haven t taken the time. Procrastination

22 Tool #2

23 Intestate The State has a Plan

24 ESTATES AND PROTECTED INDIVIDUALS CODE (EPIC)

25 Intestate: Your estate will be managed by an administrator appointed by the court.

26 Intestate: The court will appoint guardians for minor children. EPIC (4/1/00) allows nomination of guardians w/o preparing an entire will.

27 Intestate: The court will control the minor s property Age 18

28 Intestate: Your entire estate, if you are survived by descendants, may not go to your spouse.

29 Intestate: The cost of probating your estate may be greater without a carefully prepared will/trust.

30 Intestate: Estate taxes may be greater.

31 Intestate: You may have missed a final opportunity to transfer a farm or business to your family.

32 Intestate: No chance to leave an estate gift to your church, ministry or charity.

33 Tool #3

34 How does your plan measure up?

35 Trust or Will Review How long since you last looked?

36 When should we review our plans?

37 Review?? Attorneys say every 2 to 5 years Move to another state Have more children or grandchildren

38 Review?? Your children reach legal age You acquire or inherit property Tax laws change

39 Review?? Changes in your goals or needs Your charitable interests change

40 Tool #4

41 Review doesn t equal change!! Fine tune Name changes? Beneficiaries match? Are goals the same?

42 Review doesn t equal change!! Adjustments outside of will or trust Personal property memo Add a Christian preamble

43 Tool # 5

44 Many moving parts Do I have to use an attorney? What if I don t have an attorney? Do I need a will?

45 Moving Parts What s a Durable Power of Attorney? Medical Power of Attorney What s Probate?

46 Moving Parts What about a Revocable Living Trust? How do I leave a gift to ministry? How do I get started?

47 Will Options Holographic Will (hand written) Michigan Statutory Will Online Wills/ Trusts Estate Planning Attorney 18 years old Able to make decisions 2 witnesses plus testator signature

48 Will vs. Living Trust Public Less up front $$ Personal Rep Executed at death Ticket to Probate Distribution at death Probate expenses Private More initial cost Successor Trustee Go on after death Avoid probate Flexible distribution Pour over Will

49 Power of Attorney Financial When you can t make decisions. Pay the bills Make financial decisions Medical Unconscious / coma Make medical decisions Extent of treatment DNR

50 Beneficiary Designations Life Insurance IRA TOD/POD

51 Gift to Ministry IRA or Appreciated Stock Savings or CD What happens at distribution? Any Taxes due? Capital Gain?

52 Tool # 6

53 What is important to You? How has God blessed you? How do you want to handle those blessings?

54 What are your goals?? Who gets responsibility??

55 Personal Representative/Trustee Durable Power of Attorney Medical Power of Attorney

56 Christian messages to include.

57 Christian Preamble First, I commit myself to God s care, secure in His love for me and trusting in the salvation purchased for me through Christ s suffering and death. I leave those who survive me the comfort of knowing that I have died in this faith and have now joined my Lord in eternal glory. Second, I commend my loved ones to the protecting arm of God, knowing that He will continue to provide for them despite my absence; and encourage them to place their faith and trust in Him alone.

58 Estate Plan Organizer Emergency Contacts Documents User names & passwords Letters of Instruction Letters to Family- Spouse/children

59 Disaster Clause

60 Tool # 7

61 All Squared Away? Have people in place- confirmed? Plan reflects your wishes? Communicating your message? Included a gift to ministry?

62 Tool # 8

63 Leaving a Gift to Ministry Tithe Capital Campaign Special Offering Supporting a missionary

64 Leaving a Gift to Ministry Bequest (% of estate) Beneficiary Designation Life Estate Reserve

65 Tool # 9

66 Gift with Income Gift Annuity Charitable Remainder Unitrust Testamentary Unitrust

67 Gifts with Longevity Memorial/ Endowment Fund Donor Advised Fund

68 Tool # 10

69 CEF Gift Planner

70 CEF Gift Planner Take time to listen to you. What s important to you? What do you want to accomplish?

71 CEF Gift Planner Review current documents with you. Offer options to reach your goals. See you through to completion.

72 CEF Gift Planner Work with your current trusted advisors Help find an attorney or financial advisor Answer the questions that arise.

73 CEF Gift Planner No cost to the church. No cost to you. CEF gift to MI District congregations.

74 Saddleback Leather Co.

75 Thank You