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50% of those are out of date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 returns

706 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?