Estate Planning – What’s in It for Me?

1. Estate Planning –What’s in It for Me? Presented by: Douglas G. Goldberg, Esq.

2. Just the Facts • 50% to 70% have no plan • 50% of those are out of date • Baby boomers (Born 1946 to 1964) • 48 to 66 years old • 76 Million / 314 Million (24%) • Colorado population = 5.2 Million (1,248,000) • Folks are skeptical;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

3. Existing Planning Paradigm • 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”

4. The Documents Taxes Updating Trust Settlement & Administration Asset Transfer Death Tax Return Failure to Update Probate Services

5. Future Planning Paradigm • 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”

6. The Secret of Success • 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

7. The “Red Shirt” of the Future • 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

9. R. I. P. Real Reliable Radical Responsive Impact Individualized Important Integrated Process Protection Possibilities Peace of Mind

10. Reasons to Plan • 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

11. The Perfect Plan  Documents that are properly counseled, designed and drafted  Fully funded and regularly updated  Educated client family  Controlled settlement costs

12. So…What’s in it for me?

13. 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) • Financial Needs Analysis • Assets Under Management • 6. Income tax planning (412i; 419) Lifetime Provisions Disability Provisions 7. Disability income insurance 8. Business OH expense insurance 9. Long Term Care Insurance a. How to pay for it

14. 1st Death Administration • Tax returns • 706 • 1041 • 1065 • Survivor’s 1040 • 11. Investment and planning review • Funding of Marital and Family Trusts • “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 Federal Estate Tax Planning Marital Trust Family Trust

15. 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 • Offering additional service without any additional cost to you • 22. Introduction to charities Common Trust for Minors? Child Family Member Charity Grandchild Beneficiaries’ Separate Shares

16. 3 Legged Stool 3rd Party Credibility Truth Sells Educate to Motivate

17. Tools to Help • 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

18. Living Will Will Powers of Attorney Revocable Living Trust Planning Timeline Planning Opportunity Mental Incapacity Catastrophic Illness Today Death HIPAA Authorization

20. Questions to Ask • Joint Tenancy Property • Special Needs Children • Substance Abuse • Charitable Inclination • Single Parent • Government Benefits • Taxable Estate • Children’s Marriages • Minor Children • Self Employed • Rental Property • Second Marriage • Income Replacement • Obsolete Planning • Large Qualified Plan • Creditors

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25. Disability Issues • Who determines disability? • Who acts for them (Agent)? • What can the Agent do? • Providing for family? • Artificial life support? • Who pays for the care?

26. Will or Trust? • 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

27. Will or Trust—Which is Better? • 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 • No privacy • Disability determined publiclyby 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

28. Mental Incapacity Catastrophic Illness Today Death Overall Cost of Planning Not “if,” just “when”  Documents /Creation  Updating /Preservation  Settlement /Distribution

29. 3 Step Action Plan • Work with a Counseling Oriented attorney • Establish and maintain a formal updating program • Control settlement costs

30. Why Use Us? • 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

31. Opportunities to Work Together • 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

32. What’s YOUR Part? • 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 Do Do Not

33. What’s OUR Part? • 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

34. Funding and Financial Strategies With Attorney & Advisors 1 ½ hours Our Estate Planning Process Delivery Meeting With Attorney and Service Team 3 hours Asset Identification Meeting With Attorney 1 hour Design Meeting With Attorney 3 hours Initial Interview With Attorney & Advisor 1 ½ hours

35. 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

36. What’s in It For Your Clients? Peace of Mind

37. Questions?