Estate Planning 7 Keys to Success, EstateTherapy

7/29/2019 Estate Planning 7 Keys to Success, EstateTherapy

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ESTATE PLANNING7 Keys to Success

Edward Olkovich



www.EtateTheap.m – Simple solutions to estate matters Copyright © 2010 EstateTherapy Inc. All rights reserved.

Estate Planning: 7 Keys To Success 2

Unlock the mysteries o estate planning now with these 7 EstateTherapy™ action keys. You will discover how to:

1. Start Rht to Fnsh Rht – pae 5 5. Stop Peope from Fhtn Oer Yor Money – pae 18

2. Ao Fan nto Maor Ta Traps – pae 9 6. Protect Yorsef Toay – pae 20

3. Qcy Prepare a Proper W – pae 12 7. Tae Acton Now – pae 23

4. Choose Eectors to Hane Yor Estate – pae 15

Your rst key will ease you into the world o estate planning. You can proceed at your own speed through the keys.

Be sure to share these 7 keys with your amily and riends.

To your estate planning success,

Ed Olkovich, Founder o EstateTherapy Inc.

P.S. Feel ree to send your comments to me. Write me at:

[email protected]

EstateTherapy Inc.

c/o 62 Jane Street, Toronto

http://www.estatetherapy.com/

mailto:[email protected]







AbOuT EdWARd OlkOviCH

Ed Olkovich, also known as “Mr Wills,” is a leading Canadian estate expert. He is the author o several books, including

Executor Kung Fu , Breakthrough Estate Planning , and the bestselling Estate to the Heart .

Ed is certied as a specialist in Estates and Trusts Law. He was the ounding chair o the Ontario Make-a-Will initiative.

Ed speaks to proessional and public audiences across Canada. He is known as an inspiring and entertaining speaker who

makes estate tasks “easy, and more importantly, un!”

Since 1978 Ed has operated his own estate law practice in Toronto. His rm’s website –www.MrWs.com – oers ree,

valuable downloads on estate and executor topics. Ed has created the next generation o online estate tools, available at

www.EstateTherapy.com .

Get instant solutions today – the EstateTherapy™ way.


http://estatetherapy.com/










FOR YOuR PROTECTiON

This inormation is not nancial, legal, tax, medical, or psychological advice or a substitute or

proessional advice. Always consult a proessional beore taking any action.

The author and publisher assume no responsibility or loss or damages, direct or indirect, o

any kind rom use o this material.

You may share and reprint this material provided you cite its source and credit the author.

EstateTherapy™ and Executor’s Disease™ are registered trademarks o Mr Wills Inc.

EstateTherapy Inc., 62 Jane Street, Toronto, Ontario M6S 3Y4, Canada

Tel: 416.537.0777 Web: www.EstateTherapy.com

Toll ree: 1.877.679.4557 (1.877.MrWills)









kEY #1 START RigHT TO FiNiSH RigHT

The key to winning is to nd the starting line.

You don’t want to start your estate plan on the wrong oot like Diane did.

Diane is a busy mother o twins. She wants her children to be protected should something happen to her. Her idea is that, “Planning an estate is just like

cutting out cookies. Everyone gets the same estate plan.”

Diane’s mistake, unortunately, is a common one.

Don’t learn the hard way.

The rst key to eective estate planning is to start right – by learning that no single approach will meet everyone’s needs.

WHY YOu ARE SPECiAl

Everyone comes to the starting gate with dierent needs and assets.

That’s why etate pa pea. It’s not like buying a carpet that will be ne or everyone’s living room (provided the walls are brown).







Estate planning is also an ongoing process.

You have a dierent plan when you’re 65 or older than when you’re 35 with young children.

Here’s a way to see this more clearly.

ANSWER THESE THREE SHORT QuESTiONS

1. ArE you:

Single

MarriedWidowed

Getting married

Separating

Going through a divorce

Speciy other__________________

2. WHAT ESTATE PlANNiNg bENEFiTS dO YOu WANT?

Comort o spouse or adult childrenEducation o minor children

Care or a disabled spouse or handicapped adult child







Financial support o a local homeless shelter

Sale o business to your business partners

Support or the search or a cure

Protection or Eddy and Teddy, your Siamese catsSecuring your own needs in old age

Speciy other__________________

3. dOES YOuR ESTATE iNCludE:

A house or vacation home

A boat, car, or plane

Investments

Bank accountsRetirement or pension unds

Lie insurance

A business

Jewels, coins, or art

Speciy other __________________

You have just begun identiying what makes your needs dierent rom mine and everyone else’s.

Now you’re moving in the right direction.







How do you make sure you have met the needs o your spouse, children, riends, and community?

That’s the basic question o estate planning.

START bY CREATiNg AN iNvENTORY OF WHAT YOu OWN

You can do this by drawing a circle on a piece o paper. Everything you own ts into this circle. I

call this your estate pie.

The three slices in your estate pie are yourW Aet, your Jt Aet, and your

Deated Aet. Your estate can be worth thousands or millions o dollars.

Regardless o what you own, trust me: It all ts into this pie. (Learn more about my easy-as-pie

approach in Etate t the Heat – visit EstateTherapy.com or more inormation.)

The more valuable your pie, the more you will need proessional help to get started. This is

especially important i you are in a second marriage, have investments, or own a business.

Saving taxes is an important advantage o estate planning. We will cover this in the next key,Ad Fa t Maj Tax Tap.









kEY #2 AvOid FAlliNg iNTO MAjOR TAx TRAPS

Do you know the biggest tax mistake you can make? Neither did Karl, a 72-year-old mechanic who was set to

undergo open-heart surgery.

Karl told his lawyer to register his children as joint owners on the tit le to his condo.

“Was this the best thing to do?” he asked his lawyer ater the operation.

What do you think? I’ll give you my answer in a moment.

MANY PEOPlE juMP ONTO bANdWAgONS

People read a newspaper article or talk to someone in a bank about how to avoid probate and suddenly …

They’re on their lawyer’s doorstep, insisting that their property be transerred into joint ownership with their children.

Why?







EvEryonE WAnTs To AvoiD ProbATE

Don’t jump on this bandwagon. Probate taxes arenot the biggest tax problem or which you need advice.

Are you thinking o putting your child on the title to your home?

Watch out!

You should not transer property into joint ownership, even with your children, without independent legal

advice.

This means getting advice rom your own lawyer, not your children’s lawyers.

You should be aware o the many dangers o joint ownership. Using joint ownership as a way to avoid probate

taxes can mean you lose control over your property.

rEcEnT courT DEcisions conFirM THE DAngErs

Even joint ownership will not prevent bitter and costly legal battles among your children.

Like Karl, you may be disappointed to learn that a child’s creditors can also lay claim to jointly owned assets.







Probably the last thing you want to do is to buy back your own property rom your child’s creditor or partner.

The biggest issue with joint ownership is the income tax problems that can crop up when you transer property that is subject to capital gains tax.

Most people take a piecemeal approach to estate planning. But you need toee the pte. Consider the income tax consequences when you

transer assets into joint ownership.

There are some easy tax-saving moves you can make to reduce your tax bills.

Discover the 6 dangers o joint ownership that start with the letter “D” inbeakthh Etate Pa.

HOW dO YOu REduCE TAxES?

Taxes are always conusing.

Tax laws change daily. How are you going to stay on top o all this? You must rely on proessionals to give you proper advice.

Paying taxes can eat up your estate’s assets and destroy your dreams. You can, however, plan now to give those you love more and the government less.

Now let’s talk about wills.







KEy #3 QuicKly PrEPArE A ProPEr Will

Simon had no clue how to divide up his estate. He was going on a trip to Dallas and wanted

to make a will beore he let.

He wondered, “I I leave $25,000 to Billy and $25,000 to Sally, will there be enough money in my

estate to come through on my promises?”

Let me share th eet with you about what Simon should do.

No one knows or sure exactly what their estate will be worth. That’s why you should think o dividing

your estate in terms o percentages or, better still, shares. This is a lot easier than guring out

“how much will I have let or each person?”

Leave 5% or, even better, ve shares, or Billy and ve shares or Sally.

Remember this, though: Wtht a w, your estate is distributed not as you wish but as the government decides.

I you do not have a will, you have no say in who gets what and who is in charge o your aairs.

Want to know what you must do to make a will?







THings you MusT DEciDE

Who will be in charge o your estate (executor).

Who gets what (beneciaries).

Who your executor and beneciaries will be in case the ones you name are not around (backups).

Technically, there is a ourth thing your will should do. I you have minor children, you need to

name their custodians or guardians.

lAWYERS CAN ANSWER QuESTiONS

Your will is your most important estate planning tool. Don’t underestimate the legal skills required

to prepare this document. It’s a job or proessionals, not amateurs.

Wills protect assets rom costly court cases and your loved ones rom uncertainty and hardship.

Do-it-yoursel will kits are not a good way to protect your amily.

They may seem like a good idea at the time. But most homemade wills have faws that people cannot see.







Even i mistakes do not make the will invalid, they usually cost the estate more in legal ees.

THE TRiCk TO WillS iS HAviNg ONE

People orget that wills are legal documents.

You may not ully understand the law when you make a will. You still must comply with all the

ormal legal requirements.

Legal documents are interpreted, challenged, and contested in courtrooms every day.

Invest in a proper, lawyer-prepared will to avoid mistakes that could drive loved onescrazy with a court case.

You don’t have to be araid o making a will. Learn more tips and tricks inAt W:

y need t reew Thee Eeta Tp.

Next let’s talk about how important it is or you to have the right person in charge o handling

your estate.







kEY #4 CHOOSE ExECuTORS TO HANdlE YOuR ESTATE

Imagine you have a daughter, Ann, an accountant, who lives ar away on the west coast. You have another child, Bob, still living at home with you.

Who should be the executor to guard your estate?

Should it be Ann, the accountant, or Bob, who may end up helping you in your old age?

I will help you answer this in a second. But rst, answer theseqet at exet:

When should you use a corporate or proessional executor?•

What is the most important quality to look or in an executor?•

How do you properly prepare your executor?•

dO YOuR HOMEWORk

When you are no longer around, who pays your bills, controls your estate, and ensures that your loved ones get what they need?

This job belongs to your estate’s legal representative, or executor.







WHERE SHOuld YOu lOOk FOR THEM?

You must choose wisely among amily, riends, or proessionals; otherwise, sadly, someone can

end up paying or it.

Here are three key guidelines to consider:

1. FAMilY COMES FiRST. Always consider amily members rst. They are probably

your beneciaries. This means they have an interest in winding up your estate quickly and

economically.

2. CONSidER PROFESSiONAlS or a trust company i you:

Have assets that require special skills

Need someone to operate a business until it is sold

Have an estate that may be contested or involved in lawsuits

3. CHOOSE TRuSTWORTHY ExECuTORS. Honesty and reliability are the chie criteriain choosing executors.







It will be dicult or you to nd experienced executors because, ater all, most executors learn on the job.

You may not have a clue how to go about choosing the right executor.

People sometimes think this decision is easy, but second marriages and blended amilies, or example, can cause special challenges.

You can learn more in my special report,Choosing Executors: Your Formula or Success, available instantly.

Attention if you are an executor or will be one: Learn about how social changes and legal challenges aect you.

Find out more about the world’s rst sel-deence guide or executors,Executor Kung Fu: Master Any Estate in Three Easy Steps.

The next key warns you about the dangers o ignoring your legal obligations.







kEY #5 STOP PEOPlE FROM FigHTiNg OvER YOuR MONEY

Jack worked hard to earn his money as the owner o a small printing business. “I can do whatever I want with my money!” he said.

Do you think Jack is right?

You may not realize that people can challenge what you do with your property in your will.

For example, in some jurisdictions, judges can basically rewrite a person’s will. This can happen, or example,

i Jack ails to honour his ea ad ee ma at.

Normally, such obligations extend to:

his married partner•

dependants•

children•

common-law spouse•

Marg was Jack’s common-law wie or 12 years beore he died. She was nancially dependent on him.

Ater Jack passed away, she had to raise their children.







“Jack promised me I would never have to worry about money,” she said.

I you orget your legal and ormal obligations when you write your will, you can expect trouble.

Marg was not provided or in Jack’s will. She had to sue Jack’s children rom his rst marriage to get support.

Can you guess who paid or all the lawyers?

PROvidE FOR YOuR bENEFiCiARiES ANd dEPENdANTS

Ignoring your legal obligations will waste your money on court cases, lawyers, and delays. It can lead to Executor’s Disease™.Read more about this in my ree eBook Eector’s dsease.

You need proessional advice to avoid confict, grie, and trips to the courthouse.

In some cases, an inheritance must be held in trust to protect minors or those who are vulnerable.

Your executor keeps assets sae or their benet.

Successul estate planning also includes taking care o yoursel.

Now let’s unravel the mysteries o powers o attorney.







kEY #6 PROTECT YOuRSElF TOdAY

Brian was 82 and trusted his neighbor’s son, Tim.

Tim ran errands or Brian, including buying his groceries and medications. Brian would also

get Tim to cash his cheques or him at the bank.

One day the bank suggested that Brian add Tim’s name to his account.

This joint account was supposed to make things easier.

No one expected this would make it easier or Tim to help himsel to Brian’s money. But that’s what happened.

As Brian became more orgetul, he just signed blank cheques or Tim to cash.

WHO CAN HElP YOu?

When Brian’s daughter, Dorothy, visited her ather, she was shocked to discover that his taxes were unpaid.

There was no money in his bank account. Tim had helped himsel to thousands o dollars o her ather’s money.

Dorothy wanted a breakdown o just how much money was gone.

The bank said only her ather could authorize the release o this inormation.







Unortunately, he now had Alzheimer’s and could not help himsel – or her.

Dorothy’s ather had not given Dorothy a power o attorney over his nances. The bank would not

speak with her about his nances, nor about how much had disappeared.

PROTECT YOuRSElF WiTH POWERS OF ATTORNEY

Dorothy spent many more hours checking all her ather’s papers, searching or the name o his lawyer.

She could not nd her ather’s power o attorney documents.

It took Dorothy weeks to get to court. She had to apply to the court to be appointed as her ather’s guardianto protect his money. This wasted thousands o dollars in legal costs.

Don’t let this happen to you or your amily.

MONEY ANd MEdiCAl CARE ARE diFFERENT

You need to have two kinds o power o attorney documents. One is to handle your property;another is or health-care decisions. Any estate plan can be destroyed without these documents.







What’s the key to all this?

You must make those powers o attorney while you still have all your marbles.

Learn more about how you can protect yoursel in breathroh Estate Pannn.

You have now covered 6 keys to successul estate planning. Wait, I said there were 7 keys. Turn the page or your last key.







kEY #7 TAkE ACTiON NOW

John and Jillian, both in their 30s, were going on vacation. They were leaving behind Heather – their ve-year old daughter – or the rst time.

Suddenly they realized that they had no will, guardian, or trust set up or their daughter. They needed to do something immediately.

Key #7 to estate planning success requires that you act on what you have learned.

Taking action involves these three steps:

STEP 1. gET PROFESSiONAl guidANCE

Prepare a list o concerns that you need to address:

How to save income tax•

What to do or minors•

How to provide or beneciaries•







Lawyers should be able to help clariy your choice or:

attorneys•

executors•

guardians•

beneciaries•

Doing a little homework now will save you time and money. Consider readingEstate to the Heart, the astest and easiest guide to estate planning.

sTEP 2. FinD An EsTATE lAWyEr by rEFErrAl

Ask riends, accountants, and lawyers or reerrals.

Search law rm websites to nd lawyers with estate experience.

Interview the lawyers that you’re considering. You may do this by e-mail, telephone, or in person.

Inquire about the lawyer’s qualications, working arrangements, and availability or an appointment within seven to ten days.







Bring your background documents (e.g., separation or shareholder agreements) to the appointment, with a list o your questions.

Conrm with your lawyer when drat estate planning documents will be prepared. Be sure to review documents beore your appointment to sign.

Conrm how your ollow-up questions will be dealt with, either by a urther meeting or by telephone conversations.

sTEP 3. sign your EsTATE PlAnning DocuMEnTs

Sign your documents and arrange or proper storage o all original signed documents. Advise those involved where documents can be ound.

All o the above steps can be completed within two to our weeks rom start to nish.

WHAT dOES iT COST TO CREATE AN ESTATE PlAN?

Legal ees will depend on:

the experience o your legal advisors•

the complexity o your circumstances•

the ees charged in your local area•







You should be able to nd a capable lawyer in most price ranges.

Congratulations!

You have learned the 7 keys to estate planning success.

To your estate planning success,

Ed Olkovich, Founder o EstateTherapy Inc.

Please take a minute to share your thoughts and comments by [email protected].

I appreciate your eedback.









WHY THE ESTATETHERAPY™ SYSTEM WORkS

Estate planning is a process that must be kept up to date. You need a way to do this.

Here are seven advantages o EstateTherapy.com.

1. Simple solutions to help you make better decisions.

2. Beginner guidebooks with easy-to-digest inormation.

3. Insider secrets rom experts to save time and money.

4. Easy-to-understand sel-study handbooks, written in plain language.

5. Ability to learn and review at your own comortable pace.

6. The undamentals without expensive legal bills.

7. Step-by-step approaches that prevent conusion.

Visit EstateTherapy.com or ree, valuable tips on estate matters.

You can get simple and instant solutions today – the EstateTherapy™ way.





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Estate Planning 7 Keys to Success, EstateTherapy