Basic Wills, Trusts and Estate Plan Outline

BASIC WILLS, TRUSTS AND

ESTATE PLAN OUTLINE

NOT INTENDED AS LEGAL ADVICE - CONSULT WITH A QUALIFIED ATTORNEY

BEFORE RELYING ON THIS INFORMATION

Information on Wills and Trusts

             A. Personal Representative (executor) - choice, role
             B. Guardian
                      1. Avoid custody battle for children after death
                      2. Incompetent spouse
                    3. Incompetent dependent
                      4. Change guardian outside will
             C. Property bequest
                      1. Testamentary Trust
                               a. for children
                               b. other
                      2. Spouse cannot be disinherited without waiver
                              a. right of election
                      3. Children can be disinherited
             D. Written Statement - no cash and certain other limitations
             E. Revoke by new will, divorce (spouse predeceases)
             F. Tax on estates over 5 million dollars
                      1. first 5 million - family trust
                      2. remainder to spouse (unlimited spousal deduction)
             G. Probate versus Living Trusts
                      1. Simplified Probate procedure vs. NY, Kansas, Florida
                      2. Living Trusts
                            a. No tax benefits
                            b. No protection from creditors
                            c. Greater document burden
                            d. Greater cost now versus later
                            e. Disadvantages
                                        (1) Claims of Creditors
                                        (2) Inconvenience
                                        (3) Inappropriate for smaller estates
                           f. Advantages
                                        (1) Avoid probate and ancillary probate
                                        (2) Transition
                                        (3) Client preference
             H. Other Trusts
                      1. Charitable
                      2. QPRT
                      3. Crummey
                      4. Other
             I. Ethical Wills
                      1. Preparation
                      2. Drafting
                      3. Counseling

J. Retirement Accounts

1. Life expectancy issues

a. Conduit (see through or pass through) Trusts

Other Important Documents to Sign

             A. Living Wills (Declaration as to Medical or Surgical Treatment)
                       1. Turns off life support of persons in vegetative states with no hope of recovery
             B. Powers of Attorney - property, health care
                      1. Needed in the event of incompetency (eg. Alzheimers)
                      2. Choice of trusted Agent, alternate
                      3. Revocation
                      4. Can prevent guardianship/conservatorship proceedings
           C. Declaration Regarding Remains - arrangements
                       1. Burial, cremation
                       2. Funeral, memorial service
                       3. Organ donation
             C. CPR (cardiopulmonary resuscitation) directive - obtain from doctor or health care facility

NOT INTENDED AS LEGAL ADVICE - CONSULT WITH A QUALIFIED ATTORNEY BEFORE RELYING ON THIS INFORMATION