The Best Tips & Techniques for Estate Planning What Doctors Need to Know Matthew Tuttle & Adam...

The Best Tips & Techniques for Estate Planning What Doctors Need to Know

Matthew Tuttle & Adam ChodosMaterial in this seminar is for reference purposes only. This seminar is sold with the understanding that neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this seminar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional.

Material in this seminar is for reference purposes only. This seminar is sold with the understanding that neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this seminar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional.

About the Webinar Speakers

The Best Tips & Techniques for Estate PlanningMatthew Tuttle & Adam Chodoswww.ExecSense.com © ExecSense, Inc.

• About Matthew Tuttle, CFP, & Adam Chodos, JD, CPA Matthew Tuttle is the author of “How Harvard & Yale Beat the Market” and “Financial

Secrets of my Wealthy Grandparents”. He is also the co-author of the “CPAs Guide to Life Insurance” and a contributor to the “Life Insurance Answer Book”. Matthew is a frequent guest on Fox Business News, CNBC, and Fox News, and he is frequently quoted in the Wall Street Journal, NY Times, SmartMoney, and many other publications.

Adam Chodos focuses on advising significant families and businesses on asset protection, advanced estate planning, and taxation. Previously, he focused on asset protection and taxation at the New York headquarters of Brown and Wood, LLP (n.k.a Sidley Austin Brown & Wood) and with Ernst & Young, LLP consulting department. He holds a Certified Public Accountancy Certificate. Mr. Chodos is also a frequent speaker and author for professional and business organizations, including, Morgan Stanley Smith Barney Roundtable, Citi Smith Barney Conferences, NY Society of Security Analysts, The Financial Planning Association, Estate Planning Council of Westchester, and New York University Executive Forum.

Slide 2

Overview• Why Estate Planning & Asset Protection is Important for

Doctors now

1. Tax rules have changed significantly and more changes are anticipated.

2. Family structures increasingly complicated

3. Most plans have significant gaps of which family is unaware

4. Lawsuits are increasing in number and variety of theories

5. Doctors are a common target

6. Unrealistic expectations of patients lead to more perceived liability

Slide 3


What to Know1. Estate planning is not a will or any other document/technique, but a

holistic approach to address incapacity, death, asset disposition, and financial structure.

2. Documents should match goals, rather than a "package"

3. Flexibility of structure is paramount as circumstances and laws change

4. Topics to consider include minor children, replacement income, tax minimization, probate/lawyer minimization, potential for second marriages, changing tax rules, adaptability, back up affairs management, minimizing family disputes, perpetuation of values.

5. A modest plan is better than no plan.

6. Asset protection should be part of your estate plan

Slide 4


Tips & Techniques1. Imperfect choices for guardians, trustees etc. is better than no choices

2. Most people have no estate plan in place (~75%) and while most do not become horror stories, they are very unpleasant, cause much unnecessary time and expense, and usually doesn't match family goals.

3. Life insurance is usually underutilized - it is an inexpensive way to replace income to family members.

4. Trusts (within a will or otherwise) are often too rigid and lose much of the asset protection and tax planning benefits they could have achieved.

5. Even though taxes change, well prepared documents can address the tax changes without needing to be redone.

6. Entities and asset segregation should be utilized for asset protection

Slide 5


Tips & Techniques• Imperfect choices for guardians, trustees etc. is better

than no choices

• Don’t put this off, make your best choice and keep it updated constantly

• Be careful of corporate trustees-- Community banks and large financial services companies

• Consider a trust protector

Slide 6


Tips & Techniques• Most people have no estate plan in place (~75%) and while

most do not become horror stories, they are very unpleasant, cause much unnecessary time and expense, and usually doesn't match family goals.

• Family meetings

• Don’t ignore estate taxes

• Don’t assume that today’s rates will last forever

• Consider an ethical will

Slide 7


Tips & Techniques• Life insurance is usually underutilized - it is an

inexpensive way to replace income to family members

• Life insurance is often oversold, but sometimes it is necessary

• Make sure insurance is owned by a trust or some other entity

• Consider premium financing if you qualify

Slide 8


Tips & Techniques• Trusts (within a will or otherwise) are often too rigid and

lose much of the asset protection and tax planning benefits they could have achieved.

• Meld asset protection planning with estate planning when designing trusts

• Don’t assume a living trust will protect from estate taxes

• Make sure you have disclaimers in marital trusts

• Make sure you use supplemental needs trusts if you have disabled beneficiaries

• Consider spendthrifts, divorces, predators, and creditors

Slide 9


Tips & Techniques• Even though taxes change, well prepared documents can

address the tax changes without needing to be redone.

• Tax laws are constantly changing, flexibility is the key or you will make your attorney rich

Slide 10


Tips & Techniques• Consider entities and asset segregation

• Maintain formalities

• Use techniques in combination to achieve better results

• Planning most effective in advance; much more limited when a claim is on the horizon.

Slide 11


Case Studies• Case Study # 1 – Dr. A wanted to do some estate planning, get asset

protection, and tax deduct his life insurance. He decided on a 419 Plan. He got audited, paid penalties, lost his deductions, and still hasn’t been able to unwind the plan.

• Case Study #2 – Dr. B in his estate plan made a community bank and a financial incompetent relative the trustees on his trust. His trust ended up declining more than 50% during a major bull market due to mis-management.

• Case Study # 3 – Dr. C. has a $2mm estate and is married. An insurance agent got him to buy $3mm of expensive whole life insurance for estate planning even thought it is likely he will never have a liability.

Slide 12


Misconceptions• 1. A will or a trust is a simple process that shouldn’t require that much

time and effort

• 2. Once you put your estate plan together you usually don’t need to review it

• 3. Moving money to your spouse is enough asset protection

• 4. The $5mm estate tax exemption is permanent

Slide 12


Conclusions

• If you don’t have an estate plan now, get one

• If you do have an estate plan now, review it in light of the law changes

• Don’t ignore asset protection

Slide 14


The Best Tips & Techniques for Estate Planning What Doctors Need to Know Matthew Tuttle & Adam...

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