Think you don’t need an Estate Plan?

You Do.

FINANCIAL WISDOM FOR WOMEN A FINANCIAL AND ESTATE PLANNING EVENT FOR THE

WOMEN OF ST. MARY’S UNIVERSITY MAY 20, 2016

What is Estate Planning? Asset Management During Life

Incapacity Centralized control

Asset Protection Planning Divorce Creditor protection

Asset Distribution Upon Death On your terms

GOALS Transfer Title Provide for Family Retain Property in Family Charitable Intent Control Future Disposition Avoidance of Tax

Estate Planning is a Dynamic Process Life Changes

Marriage, Divorce, Birth, Death and Disability

Economic Changes Income Business Inheritance

Changes in Law Tax, Probate, and Property Law

Disposition of Assets Transfers During Life – “Intervivos Transfers”

Transfers Upon Death – “Testamentary Transfers”

Beneficiaries of Property

Instrument Disposing of Property Will Trust Deed Contract

Last Will and Testament States How Your Property Passes Upon Your Death

Beneficiaries “Outright” vs. “In trust”

Appoints a Person or Entity to Administer Your Estate and Manage Assets Executor Trustee

Probate of Will

Probate and Estate Administration Appointment of Executor

Duties of Executor Collect Assets of Estate Pay Debts Distribute Remaining Property to Beneficiaries

Independent Administration vs. Dependent Administration

What If I Die Without a Will? Property Passes According to Texas Estates Code

Estates Code Allocates Property to Heirs in Percentages

Property May Not Pass According to the Deceased’s Wishes

Administrator of Estate Appointed by Court Administrator May be Required to Post Bond

No Tax Planning

Administration Expenses

Trust Agreement Fiduciary Relationship When One Person Gives Property to Second Person

for the Benefit of a Third Person

Trust Holds Legal Title to Property

Management and Investment for the Sole Benefit of the Beneficiary

Trustee has a Fiduciary Duty to Benefiary

Intervivos (lifetime) vs. Testamentary (activates upon death)

Trust can Benefit the Person Transferring the Property (Grantor, Trustor, Settlor) or a Third Party

Trust vs. Will A Will Only Comes Into Effect After a Person’s Death Whereas a Trust can Become

Effective During Their Life

Disposition of Property

Tax Planning/Avoidance

Creditor Protection

Will can Contain a Trust for a Beneficiary

Probate vs. Non-Probate

Administration Expenses

Beneficiary Designations Life Insurance

IRA

Annuities

Bank Accounts Joint Tenants / Rights of Survivorship JTWROS Payable on Death (POD)

Non-Probate Assets – Do not Pass under Will/Trust – Defeats Estate Plan

Special Needs Trusts Supplemental Needs Trusts

Provide Care for Beneficiary Without Disqualifying Beneficiary From Government Benefits

Government Programs Limited Based on Income and Assets Medicare Medicaid Gifting of Assets Penalties

Revocable Trust for Incapacity Lack of Family to Care for Beneficiary

Management of Beneficiary’s Assets By Third Party

Eliminates Court Appointed Guardian of Estate

Ancillary Estate Planning Documents Statutory Durable Power of Attorney

Medical Power of Attorney

HIPAA Form

Directive to Physicians (Living Will)

Taxes and Tax Planning Types of Transfer Taxes

Gift Tax Estate Tax Generation Skipping Transfer Tax

Gift Tax Based on Assets Transferred During Lifetime Annual Exclusion Amount Payable By Donor Lifetime Credit / Rate

Tax and Tax Planning Estate Tax

Based on Assets Held Upon Death No Exclusion Lifetime Credit

GST Tax (Generation Skipping Transfer Tax) During Life or After Death Tax Occurs When Assets Skip a Generation Lifetime Credit

Tax and Tax Planning Ways to Reduce Taxes

Reduce Assets or Asset Value Annual Exclusion Gifts Family Limited Partnership Discount Credit Shelter Trust Marital Deduction Trust Irrevocable Trusts for Third Parties or Charity

Patty is a shareholder with Duncan, Bressler & Liu, Inc. Her practice concentrates on estate planning and trusts (including family wealth transfers), marital agreements, probate, and guardianships.  She is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization and is a Fellow of both the Texas Bar Foundation and the San Antonio Bar Foundation. She is licensed in all Texas state courts and the United States District Court for the Western District of Texas. She is a graduate of Leadership Texas (2014) and currently serves on the Board of Governors for the San Antonio Estate Planners Council. Patty received her undergraduate degree from Rhodes College and her law degree from St. Mary's University School of Law.

Patricia Rouse Vargas

Patty VargasDuncan, Bressler & Liu, Inc.

1020 N.E. Loop 410, Suite 500San Antonio, Texas 78209

210-224-0781pvargas@duncanlaw.com