Will Workshop

Will Your Will Be Known?

Presented by Susan B. Court

Attorney & Volunteer Member of the Duet Professional Advisory Committee

WILL YOUR WILL BE KNOWN?WILL YOUR WILL BE KNOWN?

It has been said that a person will work more than 40 years to accumulate assets, will spend 10 years conserving what has been accumulated, but will spend only a few hours planning how it will distributed after their lifetime.

Through your personal will you give final voice to your values and wishes.

Creating Your LegacyCreating Your Legacy

• For your spouse or “significant other”

• For your children/grandchildren

• For parents/siblings/other relatives

• For friends

• For important charitable causes

Estate Planning:Estate Planning:More Than Just A WillMore Than Just A Will

• Will

• Beneficiary Designation

• Right of Survivorship

• Transfer On Death/Pay On Death

• Deed

• Trust

WHAT IS A WILL?WHAT IS A WILL?

• Disposes of Some Property

• Appoints Guardian for minor children

• Appoints Personal Representative

• Directs Payment of Debts and Taxes

• Holographic (handwritten)– Testator’s Handwriting – Signed by Testator

• Typed– Signed by Testator– Two Witnesses– Notary?

• Valid Out-of-State Will is Valid in Arizona– (but is it good?)

REQUIREMENTSREQUIREMENTSFOR A VALID WILLFOR A VALID WILL

IN ARIZONAIN ARIZONA

WHAT IS A CODICIL?WHAT IS A CODICIL?

• Amendment to a Will

• Same Requirements as Will

• Attempting to change a Will without the “formalities” can backfire

ESTATE TAXESESTATE TAXES

• Tax Free Amount $5,250,000 ($10,500,000 per couple)

• 40% on excess

• (at least for the next two years)

• Unlimited Marital Deduction

• Unlimited Charitable Deduction

TYPES OF BEQUESTSTYPES OF BEQUESTS

• Specific

– Dollar Amount

– Property

• Percentage

• Residuary

IF NO WILL?IF NO WILL?

• Intestate Distribution– Married?– Children?– Nothing for Charity

• Bond

OTHER WAYS BESIDES WILLOTHER WAYS BESIDES WILL

• Revocable Living Trust

• Life Insurance

• Retirement Plan/IRA

• Annuity

• Transfer/Pay On Death (TOD/POD)

• Right Of Survivorship

(JTROS/CPROS)

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL REVOCABLE LIVING TRUSTREVOCABLE LIVING TRUST

• Can save estate taxes for married couples with estate larger than exempt amount

• Useful for attaching “strings”• His kids/Her kids• Protection from beneficiaries’ creditors• Avoids probate (but so do many other

methods)

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL LIFE INSURANCELIFE INSURANCE

• For individual beneficiaries, no income tax (but estate tax)

• Ownership to Charity– Often, an old policy no longer needed– Tax deduction for cash surrender value– Continuing premiums?

• Beneficiary Designation to Charity

– No income tax deduction, but no estate tax

– Continuing premiums?

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL RETIREMENT PLAN/IRA/ANNUITYRETIREMENT PLAN/IRA/ANNUITY

• Income tax plus any estate tax• Charity in zero income tax bracket• Beneficiary Designation (vs. Will/Trust)• Best asset to leave to Charity (as far as family

is concerned)• Remember to check Contingent Beneficiary

designation – often overlooked

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL REAL ESTATE DEEDREAL ESTATE DEED

• JTROS / CPROS

• Beneficiary Deed (revocable)

• Life Estate/Remainder Interest

(irrevocable)

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL TRANSFER ON DEATH (“TOD”) TRANSFER ON DEATH (“TOD”)

PAY ON DEATH (“POD”)PAY ON DEATH (“POD”)• TOD & POD: Same thing• For bank accounts, brokerage accounts, mutual

funds (not retirement plans/IRAs)• Better than JTROS with parent/child• Sample language

– “Ben Evolent, POD to Charity”– “Phil Anthropist and Cherry Tibble, JTROS, POD

of the survivor to Charity”

OTHER WAYS BESIDES WILL OTHER WAYS BESIDES WILL PLANNED GIFTS TO CHARITYPLANNED GIFTS TO CHARITY

• Charitable Remainder Trust

• Charitable Lead Trust

• Charitable Gift Annuity

LEGACY CIRCLELEGACY CIRCLE• Duet’s Legacy Circle recognizes and

honors individuals• Your gift will make a difference• Share your charitable intent with your

financial and legal advisors• With your help we can assist more

people with urgently needed services

WorkbookWorkbook

• Info about You

• Info about Beneficiaries: spouse/children/grandchildren/charities and other beneficiaries

• Financial Information

• Who gets what, how, when

• Personal Representative, Guardian, Trustee

Thank You!