Estate Planning- De Pere at Dawn

8/2/2019 Estate Planning- De Pere at Dawn

1/11

DE PERE AT DAWNEstate Planning 101:How to Plan for the Unthinkable

Richard E. Nell

Nell & Associates, S.C.

April 18, 2012


2/11

Standard Estate Plans

Wills

Its never a bad idea to have a will

Identify Beneficiaries, how estate is divided

Specify ages of distribution, if applicable

Name an Executor/Personal Representative


3/11


Durable Power of Attorney for Healthcare

Appoints an agent to make medical decisions on

your behalf

Effective only after 2 physicians determine

incapacity

Can be as specific or general as you wish

Need for guardianship can arise without ahealthcare POA


4/11


Durable Power of Attorney for Finances &

Property

Appoints an agent to manage all things financial and

real estate

Can be designed to be effective immediately or

effective upon incapacity

Need for guardianship arises withouta financial POA


5/11

Probate

The legal process by which title to property istransferred to heirs by a court

Probate Assets: assets held in a decedents namealone with no beneficiary or P.O.D. designation

Non Probate Assets: assets transferred by terms ofdocument creating non-probate status

Admitting a Will to Probate A Will does not avoid the need for probate, but rather gives

direction to the probate court The Will must be probated to be effective

Beneficiary designations and asset titling trump Willlanguage


6/11

Probate

Alternative forms of Court Administration for

Probate Estates less than $50,000

Transfer by Affidavit

Summary Assignment

Summary Settlement

Costs of Probateshould it be avoided?


7/11

Trusts in Estate Planning

Living TrustsAssets transferred to trust during life of grantor

Irrevocable: generally can reduce estate taxes andindividual income taxes (not always a good idea)

Revocable: generally do not enable grantor toavoid estate taxes or income taxes

Testamentary Trusts

Funded upon death of grantor Common purposes are to minimize

estate taxes and provide for long-term

distributions


8/11

Estate Taxes

Federal Estate Taxes

$5,120,000 estate exemption

2013$1,000,000 taxed at 55%

The Gross Estate 2031 IRCthe valueof all property, real or personal, tangible

or intangible, wherever situated.

Includes probate and non-probated assets; 2033 IRCthe values

of all property in which the decedent had an interest at the time of

his or her death.

Wisconsin Estate Taxes

Wisconsin does not have an estate tax, inheritance tax or

tax paid by a recipient of a gift at this time


9/11

Estate Taxes

Taking Advantage of the Unlimited MaritalDeduction

Unlimited marital deduction on property passing

outright to citizen spouse or certain types of trustsResults in $0 estate taxes due on first death, but

wastes estate tax exemption of 1st spouse to pass

Estate tax exemption of 1st spouse to pass can be

maximized through use of bequests which do notquality for marital deduction (outright to children;to credit shelter trust)


10/11


11/11

Estate Planning Wrap-Up

Proper Estate Planning will maximize bequests

to family, friends, pets and

charitable organizations.

Poor Estate Planning will maximize taxes tothe state and federal government.

Documents

Estate Planning- De Pere at Dawn