Dawson Community College: FARM RANCH BUSINESS MANAGEMENT PROGRAM

1. Dawson Community College: FARM RANCH BUSINESS MANAGEMENT PROGRAM TWO-GENERATION ESTATE PLANNING: Estate Planning Portfolio

2. Introduction Advanced Directive & Durable Power of Attorney for Health Care Financial Power of Attorney Will Revocable Living Trust Final Instructions

3. Advanced Directive & Durable Power of Attorney for Health Care Advanced Directive: Written document that dictates what you want to have happen to you if you are incapacitated Also known as a Living Will, Directive to Physicians, Health-Care Declaration, Advanced Health-Care Directive, Medical Directive

4. Advanced Directive & Durable Power of Attorney for Health Care Advanced Directive: Three (3) options to choose from: 1. You want to prolong your life for as long as possible, w/o regard to your condition, your chance of recovery, or cost of treatment 2. You want life-sustaining treatment to be provided unless you�re in a coma or an ongoing vegetative state 3. You don�t want your life to be prolonged unnaturally, unless there is some hope that both your physical and mental health might be restored

5. Advanced Directive & Durable Power of Attorney for Health Care Durable Power of Attorney: Written document that designates someone (18 years or older) who will have the authority to make health-care decisions for you if you�re unable due to an incapacity Called health-care agent, surrogate, attorney in-fact, or proxy

6. Advanced Directive & Durable Power of Attorney for Health Care Durable Power of Attorney: Decide whose hands you want to put your life, who will make the final decision to take you off life support, if the decision has to be made Choose people you love but are strong enough to do what you want them to do

7. Financial Power of Attorney Financial Power of Attorney: Written document that authorizes another person to act for you as if that person were you

8. Will Will: Legal document that states where you want your assets to go after your death

9. Will Probate: Title to property will not automatically transfer to designated beneficiaries after death Instead, it will be �probated� in court Probate � court procedure in which judge has to first authenticate your will and make sure it is valid, sign a court order to transfer property over to beneficiaries

10. Will: Probate Probate: Total cost of probate can amount to 4%-7% of the deceased estate Depends on complexity Probate Fees include: Appraisal costs Executor fees Filing fees for court Surety bond fees Legal fees Accountancy fees Fees are reduced if executor decides not to take fee If you are executor as well as sole beneficiary, likely will not charge self for this This fee is usually around 2% Some states can take 6 months � 2 years

11. Revocable Living Trust Revocable Living Trust: Written document stating who controls your assets while you are still alive, and what will happen to those assets once you are gone Purpose is to hold your assets while you live, and carry out wishes when you can not do so yourself

12. Revocable Living Trust Transfers the title of property into trust, appointing yourself as trustee (manager of the trust) and beneficiary (receiver of the income) Transfer title of assets into trust Once established, everything transferred to trust belongs to the trust, but as trustee, you maintain all control

13. Revocable Living Trust Advantages: Savings from estate settlement and probate costs Avoid attorney and court costs associated with inventory, distributing assets, court costs Heirs can avoid disclosing holding in public probate process, as living trust is private document not open to public Trust can continue after death with instructions on how income should be distributed Disadvantages: Do not save estate or state inheritance taxes Immediate costs to setup If property transferred to trust, 179 deduction can not be used on tax return

14. Final Instructions Memorial service Disposition of remains Funeral home preference Cemetery preference Special instructions