Navigating the Financial and Legal Navigating the Financial and Legal Issues of Parkinson‘s DiseaseIssues of Parkinson‘s Disease

Presented at the Parkinson’s Institute

July 14, 2010

Nancy Williamson, Esq.Specializing in Estate Planning

1290 Parkmoor Avenue, 3rd FloorSan Jose, CA 95126

Nancy@SanJoseWillsAndTrusts.comSanJoseWillsAndTrusts.com

IntroductionIntroduction

Objectives of an Estate PlanConsequences of not having an Estate PlanThe differences between a Will and a Living TrustOther Planning Considerations

What are the objectives of a proper Estate Plan?

An Estate Plan expresses your hopes, values and wishes for future generations.

An Estate Plan is your last communication to your loved ones.

An Estate Plan helps you to think about you and your families’ future, and plan for future needs (e.g. long term care needs, housing, etc.)

What are the objectives of a proper Estate Plan? (cont’d)

Minimize expense, cost and delays, in distributing your assets to WHOM you want and in the MANNER that you want.

If you do not have a Plan, the Government will impose a distribution plan for you.

Unfortunately, most Americans fall into this category, as only 30% of all Americans have an Estate Plan

In the Event of Incapacity – Court Control

At Death - ProbateWhat is probate?Probate is costly

Probate Fees, costs, attorney’s feesProbate is time consuming

Whether a Will is sufficient depends on a variety of factors.

Celebrity Example - Warren Burger

Mistake: Creating an Ineffective Will

Chief Justice Warren Burger died in 1995 with a $1.8 million estate and a will of 176 words he typed up himself. There's something to be said for brevity, but in this case, his family paid $450,000 in estate taxes, something that could have been easily avoided. And his executors had to pay to go to court to get approval to complete administrative acts, such as selling real estate.

Source: Mayoras, Andrew W. & Danielle B. Trial and Heirs, Famous Fortune

Fights!

What is a Living Trust?

A Revocable Living Trust is an Estate Planningdevice that utilizes many planning benefits.

At Incapacity – No Court ControlFinancial Power of AttorneyPower of Attorney for Healthcare Decisions

At Death – No Probate

What is a Living Trust? (Cont’d)

Time – Distribution is quick and easy

Flexibility and Control – while you are living, you can amend or cancel your Living Trust

Privacy – the documents are private and accessible by the public

How Does a Living Trust Work?

Grantor (You)

Initial Trustee (You)

Successor Trustee(s)

Beneficiaries

Creates and Controls the Trust

Manages the Trust

Steps in for Trustee at

Incapacity or Death

Receives Assets When You Die

Other Important PlanningOther Important PlanningConsiderationsConsiderations

Naming a Guardian for Your Minor Children

Providing for dependents with special needs

The flexibility to choose trustees and agents for different parts of your Estate Plan

Beneficiary ChoiceChildren – distribution schemeCharities – you can specify how much you want to donate, and how these funds will be used

Thank You for Attending!