Transcript Creative Wealth Preservation Techniques

GWU Alumni Weekend
September 17, 2011
By: John P. Dedon
Odin, Feldman & Pittleman, P.C.
9302 Lee Highway, Suite 1100
Fairfax, Virginia 22031
(703) 218-2131
[email protected]
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Proper Planning Will Allow You to . . .
Give what you have,
To whom you want,
When you want, and
In the way you want
And Pay Less for:
Court Costs
Attorney’s fees
Estate Taxes
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Fundamental Planning Issues
• Providing for Surviving Spouse
Outright or Marital Trust
• Providing for Surviving Children
Children from a previous marriage and
second spouse
Children with special needs
Children with creditor, financial, or marital
problems
• Competency issues
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Estate Tax :
Year
Exemption Amount
2010
2011 and 2012
No estate tax*
$5 Million**
2013
$1 Million***
Gift and Death
? - What will Congress do?
*Income Tax
**35% Estate Tax Rate
***55% Estate Tax Rate
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Current Lifetime Gifting Rates
$ 13,000 Annual Exclusion
2011 and 2012 - $5 Million
2013 - $1 Million
5
How the “Super Committee” and
Obama Administration Estate Tax
Proposals Could Negatively Affect
2012 Planning and Beyond
6
Estate Beneficiaries
Charity
IRS
GWU
Family
7
Probate
Cost
Time Delays
Publicity
Property In Multiple States
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Assets Passing Without a Will Go
Through Probate
Assets Passing With a Will Go
Through Probate
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Benefits of Revocable Living Trusts
I.
Revocable
Trust
Avoids Probate
a. Cost
b. Time Delays
c. Publicity
d. Problems with property in multiple states
II. Incapacity Planning
III. Estate Tax Planning
a. Bypass and Marital Trusts
b. GST Planning
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BASIC PLANNING
SHOULD INCLUDE
Wills
 Revocable Living Trusts
 Advanced Medical Directives (Living
Wills)
 Powers of Attorney

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Assets Passing at Death
1)
2)
3)
4)
Probate
Revocable Living Trusts
Beneficiary Designations
Titling of Assets
- Tenants In Common
- Tenants By The Entirety
(Assets Pass to Surviving Spouse)
- Joint Tenants with Right of Survivorship
(Assets Pass to Surviving Owner)
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