SEMINAR
Harley K. Look, Jr.
Katz, Look & Moison, P.C.
1120 Lincoln Street, Suite 1100
Denver, CO 80203
303-832-1900
No Legal Advice
These seminar materials and the seminar presentation are
intended to educate, and are provided for informational
purposes, only. The materials and the comments made by
the presenter do not constitute legal advice and may not be
relied upon in any particular fact pattern. The seminar
host, presenter, and their employers and employees do not
assume any responsibility for any reliance on the
information presented in association with this seminar.
Each seminar attendee should independently verify all
statements made in this seminar and seek independent
advice before using any seminar information.
Four Ws
W
W
W
W
Four Ws
WhoW
W
W
WHO ?
Attorneys
Funeral/Burial/Cremation
IRS
Creditors
Family
WHO ?
Family
Spouse
Children
CHOICE
What happens if you do not have a Will?
WHO?
No Spouse or Children
Parents
WHO?
No Parents
Siblings
Laughing Heirs
Children
Parents
State
CHOICE
What is your choice?
Who do you want as your beneficiaries?
Who do you want to handle your estate?
CHOICE
Escheat - State of Colorado.
Personal Representative - Creditors?
Where do we find friends or charities?
NOWHERE!
Four Ws
Who
What
W
W
WHAT ?
What is the nature of the property?
One farm, ranch or business.
Where is the property located?
All in Colorado ( Uniform Probate Code)
Other than Colorado (Ancillary Probate)
Do you have a personal property
memorandum?
Four Ws
Who
What
When
W
CHOICE
Timing is important.
EXAMPLE
You have a wife and two children.
Your son is through college but your
daughter is not.
What ages do you want for distribution to
your children?
CHOICE
TRUST = PROTECTION
Protection from:
The courts
Themselves
TRUST
CHOICE
You get to pick
CHOICE
TRUST DISTRIBUTION*
Two
TwoChildren
Children
Son
Son
Daughter
Daughter
rd
1/3
1/3rdatat25
25
rd
1/3
1/3rdatat30
30
&&
rd
1/3
1/3rdatat35
35
Four Ws
Who
What
When
Way
CHOICE
A WILL IS A WAY
The Will is a tool
It disburses only on death
A Trust to control beyond death
Gift $13K per year per beneficiary
A seminar focuses on the WAY
A planner doesnt know the other three Ws until the
planner meets with the client.
CHOICE
There are thousands of ways.
2.
3.
Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death
Beneficiary Deed
Probate
What is Probate
Probate is to prove the validity of the Will,
Typical Situation
It usually passes
from husband to the
wife to the children.
* A U.S. Citizen
CHOICE
Non-probate transfers. If the property is in
PROBLEM
$500,000 estate
New Husband/ New Wife
Step Children
Creditors
Courts
Attorneys
Third Parties
IRS
EXAMPLE
Estate worth:
The tentative tax in 2011:
$2.0 Million
$ 780,800
$ 345,800
$ 435,000
SOLUTION
Financial
Planning
Legal
Planning
Income
DGFPOA*
Court - $650,000
Health
HCPOA*
+HIPAA
Attorney
appointed by court
Long
Living
Will
15 years in court
Life
Term Care
Will
No Planning
Mess
SOLUTION
Trust Protection
It usually passes
from husband to the
wife.
Shelter $250,000
NO TAX
Shelter $250,000
Then to the children.
Dont leave
assets to
each other,
leave assets
for each
other.
Potential TAX
TRUST
PROBLEM
$500,000 estate
New Husband/ New Wife
Step Children
Creditors
Courts
Attorneys
Third Parties
IRS
CHOICE
Ways:
1.
2.
Title- Owner
Direct Transfer- Beneficiary
3.
Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death
Revocable Living Trust
Probate
Testamentary Trust
CHOICE
Trust = Protection
Less than or equal
to $3.5 Million
- exemption
$3.5 Million
exemption
$7,000,000.00
Survivor + Children
Co-Trustees
Children- Unlimited
Growth- No Estate Tax
Age
Age
25
30
35
25
30
35
CHOICE
There are thousands of ways
We will break it into three categories:
1.
2.
Title - Owner
Beneficiary
Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death
* Funding is important!
FUNDING*
FUNDING
Put Assets in the Trust
Retirement
Insurance
Investments
Deeds
system
AV
BV
CV
SUMMARY
4 Ws
Benefit of planning
Choices
Four legs
Powers of Attorney
Probate
Trusts
Funding
Advanced Planning
THANK YOU
Harley K. Look, Jr.
Katz, Look & Moison, P.C.
1120 Lincoln Street, Suite 1100
Denver, CO 80203
303-832-1900