we want to know how much you are learning through this presentation please take out your evaluation...
TRANSCRIPT
We want to know how much you are learning through this presentation
Please take out your evaluation form, and
Fill in “Part 1: Before the presentation,” questions 1-4.
(2 minutes)
Evaluation Form
John A. Fergione Fellow
Past President
The SETP Foundation Chairman
The Family HandbookPresented by The SETP Partners
23 September 2011
The SETP Partners
Linda
Dick Kathy
Katherine Kirsten
Kelley
Special Thanks to:
Phil SchultzFellowVice Chairman, The SETP FoundationChairman, The SETP Scholarship Foundation
Paula SmithExecutive Director, The Society of Experimental
Test Pilots
William A.(Billie)Flynn Fellow
The SETP President
Why Are We Here Today?
SETP Board long recognized the need to provide their members with financial planning guidance.
The Board formed a committee to produce a Handbook.
This Handbook is applicable to all SETP members and their families.
Housekeeping
The SETP Partners put this handbook together for the use of its members and their families so that they can plan ahead for their eventual passing.
It is a work in progress.
No claim is made or implied that it is 100% complete.
Though we have done our best to include everything we thought should be included, changes and improvements to this document will invariably be made over time.
Housekeeping…
Chairman
The Society of Experimental Test Pilots Foundation
P.O. Box 986
Lancaster, CA (USA) 93534-0986
Suggestions for improvement?
The SETP Partners
Linda de FranceThe SETP Foundation Board of
Directors
The SETP Partners
Kelley O’DonoghueChairman,
The SETP Foundation
Partner’s Committee
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
Section VIII. In Case of Death
What you Need To Do
Timeline Checklist: Guidance only
Applying for benefits
Social Security
Veteran’s
SETP Scholarship Foundation
Insurance
Appendices for More Information
A. Glossary of Terms
B. Frequently Asked Questions
C. Advanced Medical Directives
D. Other Resources and Web Links
E. Abbreviated Handbook
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
II. Establish The Vision…This is the Planning Part
Ask yourself: What Do I Want? What Do I Need?
Katherine will lead the group through a workshop to determine Life Insurance needs.
Wants vs. Needs vs. “Whatever”
Choices
Realities
The Default Plan
Managing Vision and Expectations
Your dream house won’t build itself – it takes an architect’s vision
Your dream house won’t build itself – it takes an architect’s vision
Ben and Sophie’s Choices
Example in handbook
The major questions:
Where will we live? (Housing / Home)
How will we pay the bills? (Income)
What goals can we keep?
Your “on hand” list of “supplies”
Know what your lifestyle costs
Examine / develop your spending plan
Write down your “must haves” & goals
Corral what you have:
Income
Assets
Benefits & Insurance
Your facts – best “guesstimate”
Survivor Analysis Monthly amounts required: Lump Sums required:
Housing ____________ Mortgage Payoff ________________ Expenses____________ Debts Payoff____________________ Savings_____________ Future (Education, etc)____________ Total A____________ Final Expenses___________________ Monthly amounts available: Spouse job____________ (-child care) Social Security__________ Rental / Pension____________ Total B____________ Monthly amount still needed (subtract B from A)____________ Income Fund__________________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Assets and Benefits available: Total Lump sums required:____________
Checking, Savings accounts____________ Investment accounts_________________ Retirement accounts_________________ Insurance from employer_____________ Insurance we own___________________ -Total available assets:________________ Over / (under):______________________
Survivor Analysis Monthly amounts required: Lump Sums required:
Housing ____________ Mortgage Payoff ________________ Expenses____________ Debts Payoff____________________ Savings_____________ Future (Education, etc)____________ Total A____________ Final Expenses___________________ Monthly amounts available: Spouse job____________ (-child care) Social Security__________ Rental / Pension____________ Total B____________ Monthly amount still needed (subtract B from A)____________ Income Fund__________________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Assets and Benefits available: Total Lump sums required:____________
Checking, Savings accounts____________ Investment accounts_________________ Retirement accounts_________________ Insurance from employer_____________ Insurance we own___________________ -Total available assets:________________ Over / (under):______________________
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
III. Estate Planning is a Process
Nominate a guardian for your children.
Decide what you want done with your personal effects.
Nominate someone to take charge of your affairs in the event of your death or incapacity.
Estate Plans Include Many Things
Estate Planning includes a Will, maybe a Trust and other Important Documents
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
IV. Wills vs. V. Trusts
Documents your intentions for the courts.
Nominates a guardian for any children.
Public record.
Requires probate to settle your estate.
Arrangement for management and distribution of your property.
Nominates a guardian for any children.
Non-published and non-public transfer of assets.
Probate not required*.
* Therefore, a court cannot override the decisions within.
Important DocumentsWe All Need
Durable Power Of Attorney (applicable when you are unable to communicate)
Health Care Proxy
Living Will
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
Meet with an Advisor
Broad category of advisors available
Seek references from friends and family
Financial Planning Association www.fpanet.org
Certified Planner Board of Standards www.cfp.net
Meet with an Attorney
Ask friends, family or coworkers for referrals
Most financial advisors, planners, and agents can make referrals
Typically, you will need two meetings:
First to share family details and ideas of your wishes. You will likely be given a packet of questions to answer.
Second meeting to sign and witness final documents.
Remaining communications are through email and phone calls.
Probate expense in California w 1.5 million estate figured as follows:
•House value $500K, •Assets $500K, •All Ins. DB $500K
Total Probate Fees= $71,900
Probate expense in California w 1.5 million estate figured as follows:
•House value $500K, •Assets $500K, •All Ins. DB $500K
Total Probate Fees= $71,900
REVOCABLE LIVING TRUST COSTS:
Attorney Fees $3400Financial Planner Fee:
$1500
Total Saved: $67,200
REVOCABLE LIVING TRUST COSTS:
Attorney Fees $3400Financial Planner Fee:
$1500
Total Saved: $67,200
or…
EXAMPLES OF PROBATE FEES FOR CALIFORNIA:
Assumes single person death with no planning, or deaths of both of a married couple
Probate expense in Washington on $250,000 estate:
Die in the State of WA:$4700 Probate fees Die
Die IntestateAdd $6500
Total: $11,100
Probate expense in Washington on $250,000 estate:
Die in the State of WA:$4700 Probate fees Die
Die IntestateAdd $6500
Total: $11,100
or…
REVOCABLE LIVING TRUST COSTS:
Attorney Fee $3000
Total Saved: $8,100
REVOCABLE LIVING TRUST COSTS:
Attorney Fee $3000
Total Saved: $8,100
EXAMPLES OF PROBATE FEES IN WASHINGTON STATE:
Pay Now or Pay More Later
Please note that these figures are notional only and can vary considerably for each case.
DO NOTHING
SIMPLE WILLINCLUDING DURABLE POA
LIVING WILLHEALTHCARE POA
$1800 - $2400
SIMPLE WILLINCLUDING DURABLE POA
LIVING WILLHEALTHCARE POA
$1800 - $2400
FINANCIAL PLANNER$125 - $300 PER HOUR
OR$500 TO $2500
FINANCIAL PLANNER$125 - $300 PER HOUR
OR$500 TO $2500
REVOCABLE LIVING TRUSTINCLUDES ALL ABOVE
PLUS TRUST DOCUMENTSAVOIDS PROBATE
$3200-$4500
Handbook Provides Financial Planning Guidance
II. Establish The Vision
III. Estate Planning
IV. Wills
V. Trusts
VI. Pulling Your Team Together
VII. Preparation for the Important Documents Checklist
Important Documents: Where to Begin?
Declaration and beneficiary information
Financial Institutions/Utilities Statements
Information for Death Certificates
List of emergency contacts
All email and internet accounts and passwords
Obituary picture and text
Summary: We All Need to Make Planning a Priority
Saves professional fees if we gather documents and plan ahead before meeting with Attorneys and Financial Advisors.
This will make sure our desires are carried out when we are gone.
Our loved ones will not be burdened with bureaucracy and red tape on top of tremendous grief.
John A. Fergione Fellow
Past President
The SETP Foundation Chairman
Kathy Lynn will Update FAQ’s
Based on your input through:
Blog - TBD
Phone
And, consultation with our experts.
What We Accomplished Today
A Lot of Food for Thought! But no real action
We built the proverbial Elephant
Where do you go from here to beat that elephant into submission?
Handbook = 65 PagesCover, Title, etc. = 7 Pages
58 Remain = 1/Week and in a year it’s Done!
Both of you will sleep better
Housekeeping…
This document is for informational purposes only and should not be
construed as financial or estate planning advice; nor should it replace advice from
a qualified professional (financial planner, accountant, attorney, etc.) We encourage you to seek the advice and
counsel of your professional advisors as you construct your plan.
Questions?
Action Items?
Thank you so much for your participation
Please take out your evaluation form, and
Fill in “Part 2: After the presentation,” questions 1-10.
(5 minutes)
Evaluation Form
Door Prizes!!
Disney Bucks!
Sephora Gift Card!
Test Pilot Wine!
$100!!
Let’s Be Prepared!
Backup Slides
The SETP Partners
Richard SchockRegistered Advisor,
The SETP Foundation Board of Directors
The SETP Scholarship Foundation Board of Trustees