1 / 24

The Risley Law Firm

The Risley Law Firm. Gary Risley 2800 N. Hutton Farmington, NM 87402 (505) 326-1776. Who Needs an Estate Plan ?. Anyone who has property in his name. Anyone who is responsible for minor children. Anyone who stands to inherit any titled property. How Do I Transfer Property When I Die?.

gilmore
Download Presentation

The Risley Law Firm

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The RisleyLaw Firm Gary Risley 2800 N. Hutton Farmington, NM 87402 (505) 326-1776

  2. Who Needs an Estate Plan? • Anyone who has property in his name. • Anyone who is responsible for minor children. • Anyone who stands to inherit any titled property. Copyright 2006 The Risley Law Firm

  3. How Do I Transfer Property When I Die? • Intestate Succession (State provided will.) • Will • Trust • Non-probate Transfers Copyright 2006 The Risley Law Firm

  4. Intestate Succession • The State of New Mexico has written a will for you. • It may or may not match your desires with regard to your property. • Issues with Administration can arise. Copyright 2006 The Risley Law Firm

  5. Wills • A written document stating your desires concerning your property and/or minor children. • It is a contract with the state to allow the transfer of property after you die. Copyright 2006 The Risley Law Firm

  6. Wills • Wills are VERY technical and must be written and executed properly under the state law. • You get to pick the person who manages your affairs. (PR/Executor) Copyright 2006 The Risley Law Firm

  7. Wills • Will can be used to name a Guardian/Conservator for minor children. • A trust can be established. (Testamentary Trust.) • Probate is not the problem in NM that it is in some other states. Copyright 2006 The Risley Law Firm

  8. Non-Probate Transfers • Joint Tenancy • Payable on Death • Life Insurance • Retirement Plans • Transfer on Death Deed Copyright 2006 The Risley Law Firm

  9. Trusts • Two types: • Inter Vivos (Living) And • Testamentary (Will) • Trust may be Revocable or Irrevocable. Copyright 2006 The Risley Law Firm

  10. Trusts • Trust allows us to separate the two types of title to property: equitable and legal. • The legal title holder is the Trustee. • The equitable: Beneficiary. Copyright 2006 The Risley Law Firm

  11. Trusts • The person who gives the property to the trust (corpus, principle) is the Grantor or Settlor. • The Grantor may be the Trustee and a Beneficiary. Copyright 2006 The Risley Law Firm

  12. Trusts • Trusts are excellent tool for: • Incapacity planning • Business Succession Planning • Quick, private non-probate transfers Copyright 2006 The Risley Law Firm

  13. Trusts • Trusts allow some control from beyond the grave • Protect beneficiary from himself • Assure money used as Grantor wishes Copyright 2006 The Risley Law Firm

  14. Trusts • Most Grantors are their own trustees • Be sure to plan for a “backup quarterback” • I favor corporate trustees Copyright 2006 The Risley Law Firm

  15. Trusts • Trusts are NOT a way to cheat creditors • Trusts must be funded to be effective • Always have a “pour-over will” with a Living Trust Copyright 2006 The Risley Law Firm

  16. Taxes • Current limit: $2 million before taxes kick in • Quickly takes 45% of the estate • Life insurance and retirement funds count towards valuation Copyright 2006 The Risley Law Firm

  17. Taxes • Ways to Reduce Tax Exposure: • Give it away • Give up control • Various Tools: A/B Trust, ILIT, GRAT, GRUT, other charitable gifts. Copyright 2006 The Risley Law Firm

  18. Charitable Giving • Money you give to charity does not count against your estate evaluation • You can give while alive or at death • Can give away and still receive money. Copyright 2006 The Risley Law Firm

  19. Charitable Giving • Charitable Annuity – good for Medicade planning • GRAT, GRUT – Form of trust where property given to charity, but income steam reserved Copyright 2006 The Risley Law Firm

  20. Charitable Giving • Use “extra” cash to purchase life insurance policy • Make a straight gift Copyright 2006 The Risley Law Firm

  21. Summary • Money to do an estate plan is cheap compared to costs of not doing it • Reduce or prevent family fights • Reduce or prevent litigation Copyright 2006 The Risley Law Firm

  22. Summary • A good estate plan can provide a smooth transition for the transfer of property or a business • A good estate plan can minimize or eliminate probate costs Copyright 2006 The Risley Law Firm

  23. Summary • A good estate plan gives you peace of mind and allows you to make sure that your money and property goes to those who you want to receive it, not where some Court says it should go Copyright 2006 The Risley Law Firm

  24. The RisleyLaw Firm Gary Risley 2800 N. Hutton Farmington, NM 87402 (505) 326-1776

More Related