Transcript The Gift of Answers

The Gift of Answers
®
Ed Howat, Jr., CLU, ChFC, LUTCF, RCC
Addie Woods Consulting Co. LLC
[email protected] 651.405.6644
Neither Addiewoods nor its representatives give tax, legal or financial advice. Please consult with an attorney, tax or
financial advisor for such advice. Peace of mind is about the pursuit of a mental state of calmness, serenity and comfort.
There is no guarantee that it will be achieved. The Gift of Answers is a Trademark of Addie Woods Consulting Company.
1
2
The Workshop format
What’s Past is Prologue
The Legal Side
The Epilogue & The Owner’s Manual
Part I
Helping people do the things
they haven’t done
3
4
Line of Life
Birth
Death
5
It’s About Your Movie
 Where did it start?
 Where is it now?
 Where is it going next?
 How is it going to end?
You may still have time to
write the last ACT!
6
It’s About Your Movie
 Heritage
 Values
 Experiences
 Dreams
“Life is what happens to you
when you’re busy making
other plans.” – John Lennon
7
Will your estate pass on with a deep sense of
heritage* or will the past die with you?
“Have you claimed your place at the fire? –
Richard Leider, Author
“Whenever an older person dies, another
museum closes.” – Scott West, Author
*Heritage: something possessed as a result of one's
natural situation or birth? What is your family’s
heritage?
8
The Best Gift
 What would you like to know about your family’s past?
Can you still find the information?
 How much do you know about all the people in your
family’s photo albums, home movies and recordings?
 Are there any questions that you would ask your
parents, or grandparents if you had another chance?
 What do you want your family to remember about the
past?
 What traditions, values and beliefs need to be
permanentized?
What could be better than The Gift of Answers?
9
The Best Gift
 What made it difficult to deal with your parents’
death?
 What could they have done before they died to make
things easier for you to wrap up their lives and their
estate?
 Upon reflection, what could you do to make it easier
for your family to deal with your death?
What could be better than The Gift of Answers?
10
Finishing the Movie
 How do you want your movie to end?
 What do you want your family to
remember about you?
 What do you want your family to
remember about your parents and
grandparents?
 If you could share five things about life with
your children and grandchildren, what you
tell them?
 Would you like to offer specific advice to
anyone in particular?
 Are there any relationships that need
repair?
 Who is prepared to take over your role as
head of the family?
11
12
Terri Schiavo and her mother
13
Stuff happens…
are you prepared for an emergency?
14
Life Happens
www.LifeHappens.org
15
Death is inevitable;
the mess is avoidable
“The lack of knowledge
deprives people the
opportunity to mourn.”
– Martin Kuritz, Author
16
What are you leaving
to chance?
17
Have you ever called
the babysitter
because you forgot
to tell them
something?
18
The Gift of Answers Safe
From $45-60.00 at most
discount stores
19
The Gift of Answers® Blueprint
M
P
E
A
C
E
I
N
D
Liquidity
Cash Assets
Social Security
Gov’t Programs
Qualified Plans
IRA 401(k)
Estate Planning
Wills/Trusts
Distribution
Planning
Life Insurance
Protection
Fixed / Equity
Investments
Titling of Assets
Individual/Joint
Assets
Charitable Giving Gifting to Children
Income Protection Cash Flows Debt Management
Employee Benefits
Deferred Comp
Stock Options
Special Needs
Planning
Future
Inherited Assets
Risk
Management
Liability Issues
Annuities
Fixed /Variable
Longevity Planning
Life Events
“Bucket List”
Private Banking
Tax Planning
The
Beneficiary Book
Legacy Planning
Ethical Wills
Business
Succession
Planning
This list is not intended to
be exhaustive or
complete. None of the
products, resources or
services mentioned
above are provided by
Addie Woods. Projects
requiring legal, tax, or
financial advice, or other
services not provided by
Addie Woods or its
representatives will be
referred to the
appropriate professional
(s). Peace of mind is
about the pursuit of a
mental state of calmness,
serenity and comfort.
There is no guarantee
that it will be achieved.
Ed Howat, Jr., CLU, ChFC, LUTCF, RCC ● Addie Woods Consulting Co ● [email protected] ● 651.405.6644
Does your family’s legacy come
with an owner’s manual?
Owner’s Manual
Peace of Mind
21
22
Part II
The Legal Side
Incapacity
Estate
Transfer
Beneficiary
Protection
23
Possible Goals & Objectives
 Asset Control
 Privacy
 Retain Power &
Flexibility
 Avoid Probate
 Stay Out of Court
 Minimize Taxes
 Assure Wishes
 Guardianship for
Minors
24
Incapacity Protection
 Revocable Living Trusts
 Durable Power of Attorney
 Health Care Directives
 HIPAA Authorization
25
Revocable
Living Trusts
Revocable Living Trust
Legal document for management and distribution of
property. The trust, like a will, can be modified or
eliminated at any time.
 provides maximum asset management
protection
 When assets are held in trust, the ‘trustee” has Full
power to manage and protect trust assets.
 While you are “alive and able,” you serve as the
trustee.
 If incapacity strikes, your “successor trustee”
seamlessly steps into your shoes and continues
the management and protection of trust assets.
Your successor trustee’s powers are limited to
assets owned by the trust.
26
27
Durable Powers
of Attorney
28
Durable Power of Attorney
 Attorney – in fact – acts as your legal
representative
 Manages non-trust assets
 Files Tax Returns
 Manages assets until you recover or die
29
Health Care
Directives
30
Health Care Directives
Designate person(s) to make
medical decisions
Establishes and communicates
your health care wishes
31
HIPAA
Authorizations
32
HIPAA Authorization
HIPAA limits access to protected
health care information
Designation of authorized recipient
of your protected health care
information
33
Wealth Transfer Planning
 Last Will & Testament
 Ethical Wills
 Beneficiary Designations
 Jointly-Held Property
 Revocable Living Trust
34
Last Will &
Testament
35
Last Will & Testament
 Designates Personal Representative
 Designates transfer and distribution of real & personal property
 Nominates Testamentary Guardian
36
Last Will & Testament
 Does not control jointly held property
 Does not control property that passes by contract
 Does not avoid Probate
 Does not Shelter estate from Federal or State Taxes
37
Testamentary Trusts
 Created by will
 Included in probate estate
 Comes into existence upon death and is irrevocable
38
Ethical Wills
 A way to be remembered and to leave something behind
 Who will tell your story if you don’t?
 A way to put into writing what you value most and what you stand for.
 By articulating what you values now, you can take steps to insure the
continuation of those values for future generations
 You will learn a lot about yourself in the process
 You will come to terms with your mortality by creating something of
meaning that will live on after you are gone
 It provides a sense of completion in your life
This is the wrapper and the bow around all that you own
39
Beneficiary
Designations
40
Beneficiary Designations
 Insurance Policies
 Retirement Accounts
 Annuities
41
Jointly-Held
Property
42
Jointly-Held Property
 Joint tenancy with right of survivorship
 Tenancy in common
 Tenancy by the entirety
43
Revocable
Living Trust
Revocable Living Trust
Legal document for management and distribution of
property. The trust, like a will, can be modified or
eliminated at any time.
 Avoids probate of the property in the trust
 Provides for property management or
disbursement
 Assures uninterrupted income and access to
principal for family beneficiaries
 Maintains privacy
 Eliminates time delays and reduces expenses in
settling the estate
44
45
Beneficiary Protection
Planning
 Guardianship
 Spendthrift Trust
 Incentive Trusts
 Lifetime Inheritance Protection Trust
46
Guardianship
Back-up Parents
47
Spendthrift Trusts
Protection for young financially immature
beneficiaries
48
Incentive Trusts
Instilling values and providing incentives for
desired behavior
49
Lifetime Inheritance
Protection Trusts
All the benefits plus asset protection
Part III
The Most Qualified
Executor
Who is the most qualified person to handle the final
affairs of your estate?
If you won’t be around to do it yourself, who has the
information to do it right?
50
51
But…
Is it possible that your movie script will be completed
by someone else?
52
Questions
Will your spouse have to search for a:
 Financial Advisor?
 Accountant?
 Lawyer?
53
Making things easier for your
heirs…
 Now what happens when you’re no longer
“available”?
 Will your heirs have ready access to all the
information they need to handle your estate?
54
Making things easier for your
heirs…
Do you:
 Take medications?
 Have life insurance?
 Have a lawyer?
 Have an investment advisor?
 Have IDs and Passwords?
 Have “final “arrangements”?
 Have a disaster recovery plan?
55
Making things easier for your
heirs…
Your heirs, executor, administrator will need to know:
 The location of all important documents
 How to contact certain people and a lot more!
Have you recorded all of that information?
 Where?
 How?
 Who knows where it is?
56
The Owner’s Manual
http://www.active-insights.com
57
The Family Love Letter
http://www.familyloveletter.com
58
Ethical Wills
http://www.ethicalwills.com
59
The Gift of Answers
"The Gift of Answers is about you and what you
want people to know and remember. It is your
movie, your heritage and your life.
It’s designed to tell everyone where everything is –
and advise them what to do once they find it.
60
Making things easier for your
heirs…
Some items you may not think of on your own:
 Location of circuit breaker box
 Where to turn off water supply
 Utility companies – how to contact
 Credit card information
 Alarm system code & password
 Home maintenance companies (lawns, pool,
etc,)
 Doctors, medication, etc.
61
When the time comes, will
the scripts be ready?
Owner’s Manual
Peace of Mind