Estate Planning Dos and Don'ts for Effective Preparation
Learn essential dos and don'ts for effective estate planning, covering key topics like powers of attorney, health care directives, wills, and revocable living trusts. Gain insights on important considerations to ensure a smooth transition and avoid common pitfalls. Expert guidance and tips provided by Stephen P. Astrup to help you navigate the complexities of estate planning with confidence and clarity.
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Presentation Transcript
ESTATE PLANNING DOS AND DON TS Stephen P. Astrup Providing comfort at the end of life s journey Providing comfort at the end of life s journey
Important Notice These materials and the related presentation are intended to provide the participants with guidance in estate planning and administration. The materials and the comments of the speaker do not constitute, and should not be treated as, legal advice regarding the use of any particular estate planning technique or the tax consequences associated with any such technique. Although every effort has been made to assure the accuracy of these materials and comments, the speaker and Hospice of the Red Diver Valley do not assume responsibility for the reliance of any individual on the written or oral information disseminated. You should independently verify all statements made in the materials and in the seminar before applying them to a particular fact situation, and should independently determine both the tax and non-tax consequences of using any particular estate planning technique before using it or recommending it either on your own behalf or on behalf of another
TODAYS ROADMAP PLANNING DURING YOUR LIFE GUARDIANSHIPS AND/OR CONSERVATORSHIPS MEDICAID PROBATE TAXES
PLANNING DURING YOUR LIFE 1. Power of Attorney 2. Health Care Directive 3. Will/Revocable Living Trust
PLANNING DURING YOUR LIFE Power of Attorney DO have at least two (2) attorneys-in-fact DON T have children on bank account
PLANNING DURING YOUR LIFE Health Care Directive DO have at least two (2) health care agents DON T confuse a do-not-resuscitate order (DNR) with a health care directive
PLANNING DURING YOUR LIFE Will DO have a Will If minor children: Nominate guardian Trusts for young children DON T assume a Will avoids Probate
PLANNING DURING YOUR LIFE Revocable Living Trust DO discuss a Revocable Living Trust as an option with an Estate Planning Attorney DON T assume a Revocable Living Trust avoids taxes or protects assets from the nursing home
GUARDIANSHIP AND/OR CONSERVATORSHIP Guardianship (Adult) Guard the person Conservatorship (Adult) Conserve the assets of the estate
GUARDIANSHIP AND/OR CONSERVATORSHIP Guardianship/Conservatorship DO understand this is an option of last resort DON T assume that a guardianship will cure mental illness or stop substance abuse
GUARDIANSHIP AND/OR CONSERVATORSHIP Have all other options been exhausted? Power of Attorney Health Care Directive Representative Payee Multi-Party Accounts Is Guardianship the right choice? What are you trying to accomplish with the guardianship?
MEDICAID Medicaid Minnesota Medical Assistance North Dakota Medicaid Medicaid vs. Medicare Medicare Federal health insurance program Medicaid Federal program, providing health care payments for needy persons; administered on a state-by-state basis
MEDICAID DO be careful about gifting DON T gift without consulting an Elder Law or Estate Planning attorney
MEDICAID Statewide Average Payment for Skilled Nursing Facility Care ( SAPSNF ) Minnesota = $7,960.00/month (effective July 1, 2019 to June 30, 2020) North Dakota = $8,530.05/month (effective as of January 1, 2019)
PROBATE Court process of appointing a Personal Representative (a/k/a Executor) to distribute a decedent s assets to heirs Probate is required if you own real property and/or you have: North Dakota - More than $50,000.00 in other assets Minnesota More than $75,000.00 in other assets
PROBATE Probate Avoidance Proper beneficiary designations Retirement accounts Life insurance Brokerage accounts Real Estate Transfer on Death Deed Life Estate Deed
PROBATE DO have a Will even if your estate planning goal is to avoid probate DON T: Assume things will work themselves out (e.g. my kids don t fight ); or, Be apathetic about estate planning (e.g. who cares, I ll be dead )
TAXES Estate Taxes North Dakota 2019 Federal Estate Tax Exemption = $11,400,000.00 With Portability Maximum Tax Rate = 40% Minnesota Decoupled from Federal Estate Tax Exemption 2019 State Estate Tax Exemption = $3,000,000.00 No Portability Tax Rates = 10% - 16%
TAXES Gift Taxes Tax applied to the transfer of property Gift* Less the fair market value Gift and estate tax are unified Current Gift Tax Exclusion = $15,000.00 *CAUTION Gifting affects Medicaid eligibility
TAXES DO work with your Estate Planning attorney and accountant DON T gift without recording and/or reporting
