Practical Planning To Protect Yourself and Your Loved Ones With Tips for RV’ers

1. Estate Planning in 12 Steps Practical Planning To Protect Yourself and Your Loved Ones With Tips for RV’ers By: Martin M. Shenkman, CPA, MBA, PFS, AEP, JD

2. Caveats Nothing in these slides or any accompanying presentation is to be considered tax, legal, investment or other professional advice. The information is merely provided for educational purposes and no action should be taken without the individual consulting his or her own tax, estate, legal, financial, investment, insurance and other advisers. The hosts and sponsors of this program are NOT responsible for its content or accuracy

3. What is estate planning? • Providing peace of mind for you and your loved ones on a broad range of planning issues • An integrated plan that coordinates your investments, insurance, emergency and disability planning, and more while you are alive, disabled, retired and for your heirs • You have to define what “estate planning” means to you

4. Overview of Estate Planning Documents You Should Consider Powers of Attorney Springing vs. not General vs. Special Why standard forms aren’t suffice Special provisions to include Living Wills What they are and why they are important Address specific health issues Religious issues • Health Proxies • selecting agent • What powers to include • Revocable Living Trusts • Unique importance • Boilerplate forms rarely address nuances needed • What can and should you have

5. Introduction to the 12 Steps • Every person is unique – it has to be your plan and address your challenges • Reflect your personal wishes and circumstances • Create a strong foundation of documents, steps and a plan to build upon

6. Action Step: Set Personal Goals • What concerns do you and your loved ones have that planning might address? • Are you on track with your retirement planning? What if you become disabled or die before retirement? • Who are you concerned about and who are you responsible for? • Are there any special personal, religious, financial, health, or other goals or concerns that might affect your planning?

7. Step 1: Organize Emergency, Financial, Information and Advisors Information • Contact People (names, numbers) • Financial Information (account information) • Passwords and Security Codes • Documents (Estate planning documents, legal documents, and more) • Budget and Plan

8. Investment and Financial Information is Critical to Organize and Communicate • Title to Accounts • ITF, POD • Joint • Other • Beneficiary designations • For insurance, retirement and other assets • Watch brokerage account beneficiary designations • Account Management • Consolidation and simplification • Are there excess accounts? • Who is giving you guidance? • Automation • Organizing records • On line payments • Set up on computer to facilitate planning

9. Action Steps: Emergency Info #1 • People forget and panic. Don’t put off creating an emergency list • Type up a list on your computer so you can update it • Disseminate the list to key people, ask for their help and tell them what they might need to do to help • Each professional adviser should have the list in their file

10. Action Steps: Emergency Info #2 • Organize the list by category (e.g., banking, religious adviser, professional advisers, family, neighbors) • Give only the key facts someone will need to act in an emergency (person name, institution, insurance, office/home and cell number, email, etc.) • List info needed for emergency action (e.g., account number, policy number, etc.)

11. RV TIP Step 1: Organize Emergency, Financial, Information and Advisors Information • Rv’ers, or anyone who travels extensively, should take extra precautions to make sure information is available when needed • Consider a web based personal information “locker” and give a trusted person the info • Email updated emergency info list to key people whenever there are major changes • When determining where to keep accounts consider tax issues of residency/domicile

12. Step 2: Designate a Person to Handle Financial and Legal Issues Power of Attorney • Agent(Successors) • Compensation • Begin date(Trigger) • Powers(Authority) • Durability(Disability)

13. Action Steps: Power of Attorney • Choose a trusted agent and several successors • Hire a lawyer to draft powers that work for your personal and financial situation • Discuss modifications to standard forms: • Gift powers • Who can/should be supported • Sign then distribute originals and/or copies, organize finances so your agent can act easily and safely • Evaluate pros/cons of joint accounts versus power

14. RV TIP Step 2: Power of Attorney • Rv’ers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the residence of the agent they name (and where the assets are the agent will manage in an emergency) when making a selection • Which state law should apply to your power • Where should you sign your power • Can you use a broad power that is more likely to be accepted in other states (e.g., 2 witnesses and a notary)

15. Step 3: Designate a Person to Make Health Care Decisions and Access Medical Records • Agent (successors) • Powers (religion) • Signature (State law) • Move (state; facility) Health Care Proxy Medical Power of Attorney

16. Action Steps: Health Care Proxy • Choose an agent and several successors who understand your wishes – e.g. religious preferences • Hire a lawyer to draft a health proxy that accomplishes your personal goals • Sign originals, distribute copies (or originals), be sure one is included in your medical chart • Discuss your decisions with family, friends and agents

17. Step 4: Communicating Your Health Care Wishes Prepare a Living Will

18. Action Steps: Living Will • A living will can give the agent under your health proxy valuable guidance as to what you want done • Review and consider personal wishes that should be reflected, e.g. religious observances, care instructions • Sign a living will that communicates your personal decisions • Review organ donations, burial and last rights, etc. • Sign original, distribute copies (or originals), be sure to include a copy in your medical chart • Discuss your decisions with family, friends and agents

19. RV TIP Step 4: Living Will • Rv’ers, or anyone who facing tax uncertainty as to which state they reside in (or in which they are domiciled) should consider the impact of burial requests on state tax consequences – gruesome but true • Which state law may govern your health care decisions • Where should you sign your health proxy and living will • Can you tailor the document so that it is more likely to be accepted in other states (e.g., 2 witnesses and a notary)

20. Step 5: Protect Your Minor Child With an Emergency Child Medical Form • Disclose child’s care/emergency information

21. Action Steps: Protecting Children • Review all aspects of protecting your children with your advisers • Guardian and trusts under your will • Financial planning – 529 plans and other savings • Personal letter of instruction • Directions in your power of attorney

22. Step 6: Sign a Will A legal document to designate where your assets should be distributed in the event of death

23. Action Steps: Sign a Will • Wills are important: trusts to protect heirs and save tax; name executor and guardian; and more • Write a separate personal letter of instruction • Consider trusts for minor children • Include a donation to charities – send a message to your heirs that giving back is important

24. RV TIP Step 6: Will • Hire a lawyer in the state you claim is your domicile – this will support your position and get you better advice than trying to rely on an “internet” will • Which state law should apply to your will • Where should you sign your will • If you have real estate or tangible property in a state other than where you maintain you are domiciled, that other state’s laws (and tax system) will apply

25. Step 7: Consider Creating a Revocable Living Trust • Determine if you and your loved ones will benefit • Establish a personalized (not boilerplate) living trust • Transfer assets to a trust during your lifetime • Probate and intestacy • Manage assets during disability or illness

26. Action Steps: Revocable Living Trust • See comments for “Wills” above and coordinate • Boilerplate Trusts designed to avoid probate won’t accomplish other important goals • Focus of document should be protecting you and your loved ones, and communicating your wishes • Tailor trustee, business operation, and other personal provisions to meet your specific goals

27. RV TIP Step 7: Living Trust • Using a living trust can consolidate assets, minimize the likelihood of other states claiming that their law applies, and make management of your assets easier by a family member or friend who lives at a distance from where you are • Living trust alone may not suffice, you might need a limited liability company to own real estate or tangibles – consult a lawyer in the state where the assets are located in addition to the lawyer you hire in the state you claim is your domicile

28. Step 8: Be Sure Your Insurance Coverage is in Order • Property and casualty insurance • Long term coverage • Disability income replacement • Life insurance • Liability

29. Action Steps: Life Insurance • Don’t make assumptions – get life insurance coverage reviewed at least every 2-3 years • Evaluate options – is your life insurance adequate? What goals do you have for life insurance? • Standard may not work – what objectives do you have for your insurance?

30. Action Steps: Other Insurance • Do you have disability insurance (should you?) to replace income if you cannot work? • Long term care coverage, if obtainable and affordable, should be evaluated • Property, casualty and liability coverage is often the planning step-child – make it a priority • Be sure everyone that should be listed as insured is; be sure all info given to the insurance company is accurate (e.g., don’t insure a rental property as if it were a residence since its cheaper)

31. Action Steps: Insurance Review • Insurance decisions are not a one-shot deal – review all coverage that you have, and coverage you don’t have but might need, at least every 2-3 years • Have your insurance agent prepare a chart of all coverage – eliminate duplication, evaluate deductibles and special coverage – often you can improve your protection and no or even lower cost

32. RV TIP Step 8: Insurance • Not every insurance agent or company understands the nuances of how RV’ing may affect your coverage, be sure to explain the details • Be certain coverage keeps up with lifestyle changes – if you rent your home and fulltime RV, you need landlord’s insurance not homeowners coverage – the wrong coverage could prevent recovery and torpedo you tax planning

33. Step 9: File Beneficiary Designations and Confirm Title to Accounts • Standard provisions are not always adequate • Coordinate with Revocable Trust • What powers should agent have • Give copies to your advisers • Update when banks merge • Revise when tax laws change

34. Action Steps: Beneficiary Designations • Consider all beneficiary designations: life insurance, pensions, IRAs, brokerage accounts and more • Obtain copies of the forms you filed and blank forms to facilitate revision • Be sure your advisers (CPA, lawyer, financial planner) all have copies of current beneficiary designations • Have family members who name you as beneficiary consider a trust for you

35. Step 10: Give Back • Demonstrate important values to heirs • Inspire others to give and do good • Estate planning is not only about the transmission of money, but about the transmission of values

36. Action Steps: To Give Back • Make a donation (cash, stuff, insurance) • Include a bequest in your will – even small bequests can make a big statement • Write a heartfelt letter of instruction to heirs -- Inspire others

37. Step 11: Communicate • Educate and inform your fiduciaries • Express your wishes to your loved ones • Preparation of beneficiaries Having a real conversation is one of the most important steps you can take

38. Action Steps: Communicate • Explain your finances, family issues, personal goals, and so forth to your advisers – tell all so they can help properly • Discuss with family, friends or others involved in your life what your wishes are • Can those you expect to rely on really help? Have alternatives • Express your wishes in face to face meetings and then confirm key points in writing

39. Step 12: Review, Revisit, Revise • Nothing remains static • Tax and property laws • Family situations • Assets and net worth • Health

40. Make an Action Plan And Get Started

41. Action Steps: Your Action Plan • √ Write it down or it won’t happen • √ Set small goals – an hour a week to clean up all your financial, tax, estate and other matters – burdensome goals will never be kept • √ Tell others – including advisers • √ Get help and guidance to get started – an initial consultation with a CPA or other adviser can jump start the entire process

42. Protect yourself and your loved ones