ESTATE PLANNING

SEMINAR
Harley K. Look, Jr.
Katz, Look & Moison, P.C.
1120 Lincoln Street, Suite 1100
Denver, CO 80203
303-832-1900

No Legal Advice
These seminar materials and the seminar presentation are
intended to educate, and are provided for informational
purposes, only. The materials and the comments made by
the presenter do not constitute legal advice and may not be
relied upon in any particular fact pattern. The seminar
host, presenter, and their employers and employees do not
assume any responsibility for any reliance on the
information presented in association with this seminar.
Each seminar attendee should independently verify all
statements made in this seminar and seek independent
advice before using any seminar information.

Four Ws
W
W
W
W

Four Ws

WhoW
W
W

Who receives the

benefits?

WHO ?
Attorneys
Funeral/Burial/Cremation

IRS
Creditors

Family

WHO ?

Family

Spouse

Children

CHOICE
What happens if you do not have a Will?

Guardians for minor children.

Foster home?
Minors are legally incapacitated.
Inflexibility.
Courts.
Intestacy.
Attorneys.
Children are adults at 18.

WHO?
No Spouse or Children

Parents

WHO?
No Parents

Siblings

Nieces & Nephews

Laughing Heirs

Children

Parents

State

CHOICE
What is your choice?
Who do you want as your beneficiaries?
Who do you want to handle your estate?

CHOICE
Escheat - State of Colorado.
Personal Representative - Creditors?
Where do we find friends or charities?

NOWHERE!

Four Ws
Who

What
W
W

WHAT ?
What is the nature of the property?
One farm, ranch or business.
Where is the property located?
All in Colorado ( Uniform Probate Code)
Other than Colorado (Ancillary Probate)
Do you have a personal property

memorandum?

Four Ws
Who
What

When
W

CHOICE
Timing is important.

EXAMPLE
You have a wife and two children.
Your son is through college but your
daughter is not.
What ages do you want for distribution to

your children?

CHOICE
TRUST = PROTECTION
Protection from:
The courts
Themselves

TRUST

CHOICE
You get to pick

whom you trust = TRUSTEE

CHOICE
TRUST DISTRIBUTION*
Two
TwoChildren
Children

Son
Son

Daughter
Daughter
rd
1/3
1/3rdatat25
25
rd
1/3
1/3rdatat30
30
&&
rd
1/3
1/3rdatat35
35

* This is determined in your discretion.

Four Ws
Who
What
When

Way

CHOICE
A WILL IS A WAY
The Will is a tool
It disburses only on death
A Trust to control beyond death
Gift $13K per year per beneficiary
A seminar focuses on the WAY
A planner doesnt know the other three Ws until the
planner meets with the client.

CHOICE
There are thousands of ways.

We will organize them into three categories:

1.

Title- Joint Tenancy (WROS)

2.

Direct Transfer- Beneficiary

3.

Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death
Beneficiary Deed

Probate

What is Probate
Probate is to prove the validity of the Will,

whether its yours or the states.

Colorado has the Uniform Probate Code II
Simplified process

Typical Situation

It usually passes
from husband to the
wife to the children.

Unlimited Marital Deduction

If it goes from
husband to wife*,
there is an
unlimited marital
deduction and there
is no estate tax.

* A U.S. Citizen

CHOICE
Non-probate transfers. If the property is in

joint tenancy or directly transferred, then

there is no probate.
No Probate = No Problem?

PROBLEM
$500,000 estate
New Husband/ New Wife
Step Children
Creditors
Courts
Attorneys
Third Parties
IRS

EXAMPLE
Estate worth:
The tentative tax in 2011:

$2.0 Million
$ 780,800

Applicable Credit in 2011;

tax on $1.0 Million =

Net Tax due =
9 months after death

$ 345,800
$ 435,000

SOLUTION

ESTATE PLANNING TABLE

Financial
Planning

Legal
Planning

Income

DGFPOA*

Court - $650,000

Health

HCPOA*
+HIPAA

Attorney
appointed by court

Long

Living
Will

15 years in court

Life
Term Care

Will

No Planning

Mess

SOLUTION

ESTATE PLANNING TABLE

Legal forms vs. legal services
DGFPOA- Durable General Financial Power of
Attorney
HCPOA- Health Care Power of Attorney
plus HIPAA Authorization and Release
These two documents, along with the Living Will
are legal seatbelts.

Trust Protection
It usually passes
from husband to the
wife.

Shelter $250,000

NO TAX
Shelter $250,000
Then to the children.

Dont leave
assets to
each other,
leave assets
for each
other.

Potential TAX

TRUST

PROBLEM
$500,000 estate
New Husband/ New Wife
Step Children
Creditors
Courts
Attorneys
Third Parties
IRS

CHOICE

Ways:
1.
2.

Title- Owner
Direct Transfer- Beneficiary

3.

Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death
Revocable Living Trust

Probate
Testamentary Trust

CHOICE
Trust = Protection
Less than or equal
to $3.5 Million
- exemption

Husband & Wife Trustees

Survivor - Trustee

$3.5 Million
exemption

$7,000,000.00

Survivor + Children
Co-Trustees
Children- Unlimited
Growth- No Estate Tax

Age

Age

25
30
35

25
30
35

Four Elements of a Trust

1. Owner
2. Trustee
3. Beneficiaries
4. Assets

CHOICE
There are thousands of ways
We will break it into three categories:
1.
2.

Title - Owner
Beneficiary

Insurance
Retirement Benefits
401(k)
IRAs
Annuities
Payable on Death

* Funding is important!

FUNDING*

FUNDING
Put Assets in the Trust
Retirement
Insurance
Investments
Deeds

WHERE DO YOU GO NOW ?

Review current documents
Research internet
Martindale Hubbell
www.martindale.com
Lawyers.com
www.lawyers.com

Review their grading

system
AV
BV
CV

SUMMARY
4 Ws
Benefit of planning
Choices
Four legs
Powers of Attorney
Probate
Trusts
Funding
Advanced Planning

THANK YOU
Harley K. Look, Jr.
Katz, Look & Moison, P.C.
1120 Lincoln Street, Suite 1100
Denver, CO 80203
303-832-1900