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Practical and entertaining education for
attorneys, accountants, business owners and
executives, and investors.
2
The material in this webinar is for informational purposes only. It should not be considered legal,
financial or other pro...
MEET THE FACULTY
MODERATOR:
Michael Brandess Sugar Felsenthal Grais & Helsinger
PANELISTS:
Andrew Katzenberg Kleinberg Kap...
ABOUT THIS WEBINAR
The personal wealth one acquires can be exposed to the claims of creditors for any number
of reasons, e...
ABOUT THIS SERIES
Looking for a bird’s eye understanding of the rudimentary principles of a complex area of
law? Intereste...
Dates shown are premiere dates; all episodes will be available on demand after
their premiere date.
EPISODES IN THIS SERIE...
Episode #4 Estate Planning & Asset Protection-101
PURPOSE OF MAKING AN ESTATE PLAN?
AVOID INTESTACY
When a person dies without a will, they die intestate
9© 2018 by DailyDA...
PURPOSE OF MAKING AN ESTATE PLAN?
WHAT IS PROBATE?
Probate is the formal legal process that gives recognition to a will an...
WHAT HAPPENS TO YOUR PROPERTY
WHEN YOU DIE?
NON-PROBATE V. PROBATE
11© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinar...
WHAT IS AN ESTATE PLAN?
WILL
a. Will – legal document which provides for an individual’s final wishes
b. A will generally ...
WHAT IS THE PURPOSE OF A WILL?
TAX REASONS
13© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
State and Federal
Est...
WHAT IS THE PURPOSE OF A WILL?
NON-TAX REASONS
14© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
Avoid Intestacy
C...
WHAT IS AN ESTATE PLAN?
LIVING TRUST
a. Living trust allows you to put your assets in a trust while you’re still alive
b. ...
WHAT IS AN ESTATE PLAN?
POWERS OF ATTORNEY FOR HEALTHCARE
AND PROPERTY
a. Living will/Health Care Proxy
a. Names an health...
PURPOSE OF MAKING AN ESTATE PLAN?
AVOID GUARDIANSHIPS FOR MINORS AND
INCAPACITATED
If a will has not been written at the t...
PURPOSE OF MAKING AN ESTATE PLAN?
USE TRUSTS TO LESSEN RISKS TO
BENEFICIARIES
18© 2018 by DailyDAC, LLC d/b/a Financial Po...
PURPOSE OF MAKING AN ESTATE PLAN?
TRANSMUTATION AGREEMENTS
19© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
ASSET PROTECTION PLANNING
20© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
Retirement
Plans
ASSETS PROTECTION PLANNING TRUSTS
a. What is a trust?
b. A trust is a written agreement between three parties:
a. (1) sett...
ASSETS PROTECTION PLANNING TRUSTS
(cont’d)
Asset Protection Trust
a. Settlor and beneficiary can be same person
b. Trustee...
ASSET PROTECTION PLANNING
DOMESTIC ASSET PROTECTION TRUSTS
23© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
Domes...
ASSET PROTECTION PLANNING
RETIREMENT PLANS
a. “In general, all assets inside a 401(k) plan are out of reach of creditors,
...
ASSET PROTECTION PLANNING
RETIREMENT PLANS (cont’d)
IRAs, including Roth IRAs, don't have precisely the same shields as 40...
ASSET PROTECTION PLANNING LIFE
INSURANCE AND EXEMPT ASSETS
• Life insurance or its proceeds can be exempted from creditors...
ASSET PROTECTION PLANNING
TENANCY BY THE ENTIRETY
Tenancy by the Entirety is a type of
ownership where each spouse owns an...
ESTATE PLANNING AND ASSET
PROTECTION WHAT LIES AHEAD?
28© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
ABOUT THE FACULTY
MICHAEL BRANDESS
mbrandess@sfgh.com
Michael A. Brandess, a partner at Sugar Felsenthal Grais & Helsinger...
ABOUT THE FACULTY
JEFFREY D. SHELLEY
JShelley@sfgh.com
Jeffrey D. Shelley focuses his practice on estate planning, estate ...
ABOUT THE FACULTY
ANDREW KATZENBERG
akatzenberg@kkwc.com
Andrew S. Katzenberg is an attorney at the New York law firm Klei...
ABOUT THE FACULTY
VAR LORDAHL
vlordahl@dickinson-wright.com
Val Lordahl is a member at Dickinson Wright, Las Vegas.
He rep...
The material in this presentation is for general educational purposes only. It has been prepared
primarily for attorneys a...
If you have any questions about this webinar that you did
not get to ask during the live premiere, or if you are watching ...
To receive Financial Poise’s DACyak, our free weekly e-newsletter,
just send an email to:
info@financialpoise.com
Please a...
About Financial Poise™
www.financialpoise.com
DailyDAC LLC, d/b/a Financial Poise™ provides continuing education to
attorn...
Estate Planning & Asset Protection – 101 (Series: ONE HOUR LAW SCHOOL 2018)
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Estate Planning & Asset Protection – 101 (Series: ONE HOUR LAW SCHOOL 2018)

The personal wealth one acquires can be exposed to the claims of creditors for any number of reasons, even when one is doing business through a corporate entity. There are, however, ethical and legal means to protect one’s assets from potential future creditors. Whether addressing your personal needs or those of a client, asset protection is a fundamental part of making certain that one’s financial house is in order. This webinar touches on all these things.

To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/estate-planning-asset-protection-101/

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Estate Planning & Asset Protection – 101 (Series: ONE HOUR LAW SCHOOL 2018)

  1. 1. Practical and entertaining education for attorneys, accountants, business owners and executives, and investors. 2
  2. 2. The material in this webinar is for informational purposes only. It should not be considered legal, financial or other professional advice. You should consult with an attorney or other appropriate professional to determine what may be best for your individual needs. While Financial Poise™ takes reasonable steps to ensure that information it publishes is accurate, Financial Poise™ makes no guaranty in this regard. While Financial Poise is happy to make this PowerPoint freely available to all, the reader is cautioned that it was created for use as part of a webinar that featured an extensive verbal discussion of the topics addressed in the PowerPoint. It was not designed to be read by itself. Financial Poise webinars can be purchased at www.financialpoise.com. You may also receive offers for free webinars by subscribing to Financial Poise's DACyak, a free weekly newsletter. DISCLAIMER 3
  3. 3. MEET THE FACULTY MODERATOR: Michael Brandess Sugar Felsenthal Grais & Helsinger PANELISTS: Andrew Katzenberg Kleinberg Kaplan Var Lordahl Dickinson Wright Jeffrey D. Shelley Sugar Felsenthal Grais & Helsinger 4
  4. 4. ABOUT THIS WEBINAR The personal wealth one acquires can be exposed to the claims of creditors for any number of reasons, even when one is doing business through a corporate entity. There are, however, ethical and legal means to protect one’s assets from potential future creditors. Whether addressing your personal needs or those of a client, asset protection is a fundamental part of making certain that one’s financial house is in order. This webinar touches on all these things. This webinar is delivered in Plain English, understandable to you even if you do not have a background in the subject. It brings you into an engaging, even sometimes humorous, conversation designed to entertain as it teaches. And, it is specifically designed to be viewed as a stand-alone webinar, meaning that you do not have to view the other webinars in the series to get a lot out of it. 5
  5. 5. ABOUT THIS SERIES Looking for a bird’s eye understanding of the rudimentary principles of a complex area of law? Interested in a much needed refresher on an issue that has rapidly evolved in recent years? Short on time? This series explores the essential building blocks of important legal concepts facing business people. As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors, business owners, and executives without much background in these areas, yet is also valuable to attorneys, accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes so that participants will enhance their knowledge of this area whether they attend one, some, or all episodes. 6
  6. 6. Dates shown are premiere dates; all episodes will be available on demand after their premiere date. EPISODES IN THIS SERIES EPISODE #1 Forming a Company: How to Start a 3/13/2018 Business EPISODE #2 Commercial Real Estate – Acquisition and 4/24/2018 Development EPISODE #3 Employment Law-101 5/22/2018 EPISODE #4 Estate Planning & Asset Protection-101 6/19/2018 7
  7. 7. Episode #4 Estate Planning & Asset Protection-101
  8. 8. PURPOSE OF MAKING AN ESTATE PLAN? AVOID INTESTACY When a person dies without a will, they die intestate 9© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Situation Result A person dies with a will Beneficiaries set forth in will receive property A person dies intestate 1) Heirs receive property pursuant to state statutes; or 2) If no heirs, property reverts to state (depends on relevant statute)
  9. 9. PURPOSE OF MAKING AN ESTATE PLAN? WHAT IS PROBATE? Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries. The laws of each state vary, so it is a good idea to consult an attorney to determine whether a probate proceeding is necessary, whether the fiduciary must be bonded (a requirement that is often waived in the will) and what reports must be prepared. 10© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Probate is held in county where decedent resided No set time frame in which will must be probated / administered Executor oversees administration http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/the_probate_process.html
  10. 10. WHAT HAPPENS TO YOUR PROPERTY WHEN YOU DIE? NON-PROBATE V. PROBATE 11© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Non-probate •Life insurance •Bank accounts •JTWROS •Etc. Probate •Need a Court to tell us what to do
  11. 11. WHAT IS AN ESTATE PLAN? WILL a. Will – legal document which provides for an individual’s final wishes b. A will generally includes: a. Guardian for minor children b. Beneficiaries c. Disbursement of assets d. Designation of executor c. No will = dying intestate a. No say on settlement of estate 12© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  12. 12. WHAT IS THE PURPOSE OF A WILL? TAX REASONS 13© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ State and Federal Estate Tax Rates Federal Exemption and Annual Exclusion Gifts Marital Deduction (avoid tax at first spouse’s death)
  13. 13. WHAT IS THE PURPOSE OF A WILL? NON-TAX REASONS 14© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Avoid Intestacy Choose Fiduciaries Create trusts to lessen risks to beneficiaries Avoid Probate Assets in Multiple States
  14. 14. WHAT IS AN ESTATE PLAN? LIVING TRUST a. Living trust allows you to put your assets in a trust while you’re still alive b. Transfer title of property to trust but retain right to use property c. Numerous benefits, including: 15© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Helps manage your affairs Greater control of assets Good for dispersed family assets Easy to create and change Protects your privacy Avoids probate!
  15. 15. WHAT IS AN ESTATE PLAN? POWERS OF ATTORNEY FOR HEALTHCARE AND PROPERTY a. Living will/Health Care Proxy a. Names an health care agent who can make health care decisions for you during your life when you cannot communicate those decisions to doctors. b. Gives guidance to the health care agent regarding your desired medical treatment (e.g. DNR, end of life scenarios, organ donation etc.) b. Power of attorney for Property c. Names an agent who can manage your affairs during your life when you mental or physical cannot. d. Examples of tasks – signing a tax return or paying a medical bill. 16© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  16. 16. PURPOSE OF MAKING AN ESTATE PLAN? AVOID GUARDIANSHIPS FOR MINORS AND INCAPACITATED If a will has not been written at the time of the parents’ death, the court will decide who becomes the child’s legal guardian. All friends and family members can step forward and nominate themselves for the position, despite your feelings for them. A judge will determine who is best suited for the job based on evidence as to what is in the best interest of the child given during a hearing. A judge might have different values or priorities than you do, so he might not choose the same person you would have considered while you were alive. The child does not immediately go to a grandparent or sibling if the judge determines that relative is not fit for guardianship. http://www.livestrong.com/article/248389-who-gets-custody-of-children-if-both-parents-die/ 17© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  17. 17. PURPOSE OF MAKING AN ESTATE PLAN? USE TRUSTS TO LESSEN RISKS TO BENEFICIARIES 18© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Control your wealth •You can specify the terms of a trust precisely, controlling when and to whom distributions may be made. Protect your legacy •A properly constructed trust can help protect your estate from your heirs’ creditors or from beneficiaries who may not be adept at money management. Privacy and probate savings •Probate is a matter of public record; a trust may allow assets to pass outside of probate and remain private, in addition to possibly reducing the amount lost to court fees and taxes in the process.
  18. 18. PURPOSE OF MAKING AN ESTATE PLAN? TRANSMUTATION AGREEMENTS 19© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  19. 19. ASSET PROTECTION PLANNING 20© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Retirement Plans
  20. 20. ASSETS PROTECTION PLANNING TRUSTS a. What is a trust? b. A trust is a written agreement between three parties: a. (1) settlor (grantor) - puts assets in trust; b. (2) trustee – manages trust assets; and c. (3) beneficiary – benefits from trust 21© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  21. 21. ASSETS PROTECTION PLANNING TRUSTS (cont’d) Asset Protection Trust a. Settlor and beneficiary can be same person b. Trustee often licensed/bonded party with obligation to protect assets from creditors. c. Benefits: a. Protect against business creditors; b. Effective in divorce proceedings; c. Avoid estate taxes; and d. Avoid probate expenses 22© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  22. 22. ASSET PROTECTION PLANNING DOMESTIC ASSET PROTECTION TRUSTS 23© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Domestic asset protection trusts (DAPTs) are trusts that protect assets from creditors, which include by definition a future spouse. Additionally, a DAPT allows the settlor to name him or herself as a potential beneficiary—hence the name “self-settled” trusts. Beyond its utility as an estate planning device, asset protection trusts are effective against a settlor’s future spouse and other creditors provided the trust settlement does not violate applicable fraudulent transfer law. Furthermore, in establishing a domestic asset protection trust, there is no requirement that the settlor of the trust disclose his or her plans to create a DAPT or the assets with which he or she will fund the trust. As such, a soon to be married individual can establish a DAPT in a state permitting such trusts and, upon the dissolution of the marriage, shield those assets from any equitable distribution.
  23. 23. ASSET PROTECTION PLANNING RETIREMENT PLANS a. “In general, all assets inside a 401(k) plan are out of reach of creditors, both inside or outside of bankruptcy. That’s often true of 401(k) assets rolled into an IRA, as well—though you may be required to prove that those assets came from a 401(k). For that reason, never co-mingle rolled over assets with those from a self-funded IRA.” http://time.com/money/3922169/can-creditors-take-my-ira/ a. 2 Exceptions - a. federal tax liens imposed by the IRS b. judgments against individuals who had administered an employer- sponsored plan for embezzlement of the plan or a fiduciary breach against it. 24© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 401(k)
  24. 24. ASSET PROTECTION PLANNING RETIREMENT PLANS (cont’d) IRAs, including Roth IRAs, don't have precisely the same shields as 401(k)s -- but under a 2005 law, the Bankruptcy Abuse Prevention and Consumer Protection Act, up to $1 million in IRA assets are protected in the event of bankruptcy. In other types of lawsuits, IRA protections from creditors vary from state to state and may be different for traditional IRAs and Roth IRAs. 25© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ IRA
  25. 25. ASSET PROTECTION PLANNING LIFE INSURANCE AND EXEMPT ASSETS • Life insurance or its proceeds can be exempted from creditors • Protections differ widely by jurisdiction • For instance: • Nevada: beneficiary’s interest in proceeds and avails is wholly protected from all creditors; • New York: beneficiary’s interest in proceeds and avails wholly protected from all creditors provided beneficiary is not owner or insured. Owner’s interest in proceeds and avails of policy insuring another is exempt as against creditors of insured (and owner’s own creditors if insured is owner’s spouse) • Annuities sometimes protected – but also depends on jurisdiction 26© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  26. 26. ASSET PROTECTION PLANNING TENANCY BY THE ENTIRETY Tenancy by the Entirety is a type of ownership where each spouse owns an undivided interest in the property. Another trait is Right of Survivorship, meaning that when one spouse dies, the other is entitled to receive the share of the one who died. Only certain states offer this type of property protection. 27© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ https://www.assetprotectionplanners.com/articles/the-controversial-truth-about-asset- protection-planning/tenancy-by-the-entirety-states-and-community-property-states/
  27. 27. ESTATE PLANNING AND ASSET PROTECTION WHAT LIES AHEAD? 28© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  28. 28. ABOUT THE FACULTY MICHAEL BRANDESS mbrandess@sfgh.com Michael A. Brandess, a partner at Sugar Felsenthal Grais & Helsinger LLP in the firm’s Business Transactions and Bankruptcy, Reorganization & Creditors’ Rights practice groups, is consistently recognized for his dedicated and zealous representation for his clients, finding the most efficient and creative solutions, securing his clientele the most value for their claims. Michael’s practice focuses on representing creditors, debtors and creditors’ committees in complex corporate restructurings. Michael Brandess has a wealth of experience representing both healthy and distressed companies involved in complex transactions across the country, in industries ranging from energy, real estate, construction, agriculture, retail, financial services, telecommunications and restaurant franchises. Michael represents lenders both before and during insolvency proceedings, protecting his clients’ collateral from diminution of value, so they may realize a higher return. Michael also has represented asset purchasers in complex sales, creditors in difficult reorganizations and trustees and plan administrators during the wind-down of multi-million dollar estates. 29© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  29. 29. ABOUT THE FACULTY JEFFREY D. SHELLEY JShelley@sfgh.com Jeffrey D. Shelley focuses his practice on estate planning, estate and trust administration, charitable planning, tax matters, business transactions, and intellectual property. Jeff’s prior scientific, tax, and business background gives him unique insights when providing individuals, entrepreneurs, business owners, and family offices with personal and business solutions. Jeff assists clients with various estate planning and tax services, which range from preparation of basic estate plans to creation and implementation of comprehensive wealth transfer and business succession plans for high net worth individuals to minimize the impact of gift, estate, and generation-skipping taxes. Jeff represents trustees and personal representatives through administration of trusts and estates, including representing clients in probate court and counseling clients on federal and state estate tax returns and gift tax returns. Jeff works with owner managed businesses helping them with transactions, tax planning, succession planning, and intellectual property protection. Jeff transaction experience includes the sale of a major stake of an executive in a large, publicly traded company. Jeff works with clients to enforce their intellectual property rights through litigation in state and federal courts and through other dispute resolution forums. Before joining SFGH, Jeff had a multi-disciplinary practice at another Chicago law firm. Jeff worked as a Big Four professional services firm consultant, where he advocated for clients in complex business tax credit matters. Jeff prepared patent applications before the U.S. Patent and Trademark Office. Prior to practicing law, Jeff gained extensive business experience as a research scientist for a Fortune 500 company that manufactures and markets consumer and health care products worldwide. During his career there, he developed and launched next-generation products and manufacturing processes and was granted several product and process patents. 30© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  30. 30. ABOUT THE FACULTY ANDREW KATZENBERG akatzenberg@kkwc.com Andrew S. Katzenberg is an attorney at the New York law firm Kleinberg, Kaplan, Wolff & Cohen, P.C. in the Trusts and Estates group, where his practice focuses on wealth preservation, estate and trust administration, nonprofit and tax-exempt organizations and charitable giving. Andrew has been published in numerous law journals and is a member of the New York State Bar Association Trusts and Estates Law Section Tax Committee. He received his undergraduate degree at Tufts University, his JD from the University of Maryland and his LLM in tax from NYU. 31© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  31. 31. ABOUT THE FACULTY VAR LORDAHL vlordahl@dickinson-wright.com Val Lordahl is a member at Dickinson Wright, Las Vegas. He represents individuals, families, and businesses in a wide range of areas including estate planning, trusts, asset protection, probate, elder law, business formation, tax structuring, and tax disputes. He is a Board Member and Secretary of the Foundation for an Independent Tomorrow, a Member of Southern Nevada Estate Planning Counsel, and a Member of The State Bar of Nevada. 32© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  32. 32. The material in this presentation is for general educational purposes only. It has been prepared primarily for attorneys and accountants for use in the pursuit of their continuing legal education and continuing professional education. While Financial Poise is happy to make this PowerPoint freely available to all, the reader is cautioned that it was created for use as part of a webinar that featured an extensive verbal discussion of the topics addressed in the PowerPoint. It was not designed to be read by itself. Financial Poise webinars can be purchased at www.financialpoise.com You may also receive offers for free webinars by subscribing to Financial Poise's DACyak, a free weekly newsletter. IMPORTANT NOTES 33© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  33. 33. If you have any questions about this webinar that you did not get to ask during the live premiere, or if you are watching this webinar on demand, please don’t hesitate to email us at: info@financialpoise.com Please include the name of the webinar in your email, and we will provide a response to your question. QUESTIONS OR COMMENTS? 34© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™
  34. 34. To receive Financial Poise’s DACyak, our free weekly e-newsletter, just send an email to: info@financialpoise.com Please add the message, “Subscribe Please” to your email, or add yourself by going to: https://www.financialpoise.com/newsletter/ Subscribers are eligible to receive discounts and giveaways from time to time, and subscriber emails are never sold to or shared with third parties. 35
  35. 35. About Financial Poise™ www.financialpoise.com DailyDAC LLC, d/b/a Financial Poise™ provides continuing education to attorneys, accountants, business owners and executives, and investors. Its websites, webinars, and books provide Plain English, entertaining, explanations about legal, financial, and other subjects of interest to these audiences. 36

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