Presented by: Douglas G. Goldberg, Esq.. 50% to 70% have no plan 50% of those are out of date ...
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Transcript of Presented by: Douglas G. Goldberg, Esq.. 50% to 70% have no plan 50% of those are out of date ...
Presented by:
Douglas G. Goldberg, Esq.
Estate Planning –What’s in It for Me?
50% to 70% have no plan
50% of those are out of date
Baby boomers (Born 1946 to 1964) 48 to 66 years old 76 Million / 314 Million (24%)
Colorado population = 5.2 Million (1,248,000)
Folks are skeptical; Building trust is critical
Just the Facts
The “Two – Step” Practice Model Document oriented – Minimal counseling Minimal time with clients Higher volume Non-legal funding rarely completed Weak client relationships Lower fees Difficult to eliminate “shoppers”
Existing Planning Paradigm
Trust Settlement & Administration
Death Tax Return
Probate Services
Asset Transfer
The Documents
Updating
Failure to Update
Taxes
The “Collaborative” Practice Model Counseling oriented Expanded time with clients – 3 or more meetings Lower volume Non-legal funding always completed Strong, generational client relationships Much higher fees No “shoppers”
Future Planning Paradigm
Andrew Carnegie’s “Red Shirt” Action Attitude
The Estate Planning “Red Shirt” Team approach to estate planning Counseling oriented advisors Fully funded living trusts Value billing Technical excellence Regular follow up Accountability
The Secret of Success
Process based, not Transaction based
Zero estate tax based planning; “Built in” asset protection
Minimal settlement and transfer costs
Driven by personal and family values
Advisor teams & multi-disciplinary practices
Deliverable = Wisdom NOT documents
Focus on VALUE, rather than COST
Trust; Relationship; Stewardship
The “Red Shirt” of the Future
R. I. P.
RealReliableRadicalResponsive
ImpactIndividualizedImportantIntegrated
ProcessProtectionPossibilitiesPeace of Mind
Control and protect assets
Plan for disability
Give what they have
To whom they want
When they want
The way they want
Control settlement costs
Reasons to Plan
Save Taxes /Avoid Probate
Expand andProtect Assets
Assets – What; Who; How
Family & Other Beneficiaries
Individual
Documents that are properly counseled,designed and drafted
Fully funded and regularly updated
Educated client family
Controlled settlement costs
The Perfect Plan
So…What’s in it for me?
Lifetime Provisions
Disability Provisions
1. Liability umbrella
a. Others on team / referrals
b. Protection for managed assets
c. Multi-line (Attrition Protection)
2. Street Account / Diversify portfolio
a. Ease of transferring assets
3. Retirement accounts (IRA / 401k / Roth)
4. Financial Needs Analysis
5. Assets Under Management
6. Income tax planning (412i; 419)
7. Disability income insurance
8. Business OH expense insurance
9. Long Term Care Insurance
a. How to pay for it
12. Funding of Marital and Family Trusts
13. “Debt – Free” Insurance
14. Income Replacement Insurance
15. Assets Under Management
a. Non-spousal mgmt of heirs’ assets
b. IRA / 401(k) / 403(b) rollovers
16. Investment assistance for spouse
a. Cash flow analysis
1st Death
Administration
10. Tax returns706 10411065Survivor’s 1040
11. Investment and planning review
Federal Estate Tax Planning
MaritalTrust
FamilyTrust
2nd Death Administration 16. Theft (Life) Insurance for estate taxes
a. Life insurance trust
17. Wealth Creation / Preservation Insurance
b. In Life insurance trust
18. Tax return (706 / 709 / 1041)
19. Succession clients – adults / minors
a. Mgmt of minor children’s assets
b. IRA / 401 k / 403 b rollovers
c. Assets Under Management
20. Investment assistance for adult children
a. Cash Flow analysis
b. Investment / planning review
21. Offering additional service without any additional cost to you
22. Introduction to charities
Beneficiaries’ Separate Shares
Common Trust for Minors?
Child
Grandchild
FamilyMember
Charity
3 Legged Stool
3rd Party Credibility
Educate to Motivate
Truth Sells
Planning Timeline
Issue Spotting – Opening the Door Goals, Risks and Anxieties Checklist Questions to Ask Spots on the X-ray Disability Questions
Will or Trust?
The Big “C”
Do’s and Don’ts
DIY Article
ICI Package
Tools to Help
Planning TimelinePlanning
Opportunity
Today Catastrophic Illness Death
Mental Incapacity
WillLiving Will
Powers of Attorney
Revocable Living Trust
HIPAA Authorization
Questions to Ask
Minor Children
Self Employed
Rental Property
Second Marriage
Income Replacement
Obsolete Planning
Large Qualified Plan
Creditors
Joint Tenancy Property
Special Needs Children
Substance Abuse
Charitable Inclination
Single Parent
Government Benefits
Taxable Estate
Children’s Marriages
Ted
Who determines disability?
Who acts for them (Agent)?
What can the Agent do?
Providing for family?
Artificial life support?
Who pays for the care?
Disability Issues
Refrigerator or Gun Safe?
When do you want to retitle your assets?
Difference in design fee = “funding” cost
Will Planning Time to Settle: 18 Months Cost to Settle: ~ 2% of gross estate
Trust Planning Time to Settle: 90 days Cost to Settle: ~ ½ % of gross estate
Will or Trust?
No privacy
Disability determined publicly
by Court
Limited tax planning
Longer and more costly disposition
of assets
No protection while alive;
6-12 months after death
Less work now;
Far more work later
Maximum privacy
Disability determined privately
Maximum tax planning
More efficient &
cost effective disposition
No protection while alive;
Max protection after death
More work now;
Far less work later
Will or Trust—Which is Better?
Overall Cost of Planning
TodayMental
IncapacityCatastrophic
Illness Death
Documents /
Creation
Settlement /Distribution
Updating /
Preservation
Not “if,” just “when”
1. Work with a Counseling Oriented attorney
2. Establish and maintain a formal updating program
3. Control settlement costs
3 Step Action Plan
We’re really good Over 50 years combined experience Commitment to technical excellence
We’re really nice Attorneys and staff who genuinely care about people
We’re really long term focused Relationships with the next generation Reflected in our strategies and documentation
We’re really fanatical about our work We’ll never embarrass you You’ll be proud to have us do your mom and dad’s estate plan
Why Use Us?
Joint seminars & events For Clients For Employees of Clients For Your Team Retail Event Annual Event
Advisor Teleconferences
Guest Columnist Newsletter Blog
Private branding of books
Opportunities to Work Together
Tell them what they need
Tell them the process is“quick & easy” — we are not selling cheeseburgers
Sell the process as a commodity
Quote our fee
Get discouraged if it takes longer than you’re used to – It will be worth it!
Encourage clients to plan with us
Use real life scenarios
Tell them that we customize every plan to fit individual needs
Attend the initial meeting
Follow up with additional planning opportunities
Help us with the asset funding
What’s YOUR Part?Do NotDo
Initial Meeting with clients – Generally, complimentary About an hour Explain the process Explore their planning goals at no charge
Provide sound legal advice, strategy and documents To achieve their personal and family goals now and in the future
Identify additional planning opportunities for the team
Charge a reasonable fee If cost if their only concern, send them to Legal Zoom or Office Max
What’s OUR Part?
Funding andFinancial StrategiesWith Attorney & Advisors
1 ½ hours
Delivery MeetingWith Attorney
and Service Team3 hours
Asset Identification Meeting
With Attorney1 hour
Design MeetingWith Attorney
3 hours
Our Estate PlanningProcess
Initial InterviewWith Attorney & Advisor
1 ½ hours
So…What’s in it for me? Increased service to your clients
Increased value to you client and to the team
Higher quality, longer term relationships
Continued education and expertise
More money
More time
What’s in It For Your Clients?
Peace of Mind
Questions?