Wills and Estate Planning Seminar

1. Wills and Estate Planning Seminar St. Mary’s Monsignor John Dillon Day Heritage Society

2. What’s today all about?

3. This presentation is not intended as legal advice. Do not take any action related to estate planning without consulting your attorney.

4. plan for maximum benefit keep control and be independent make sure things go as you want them to keep God in mind Today – how to

5. give you ideas and knowledge make you better informed not solve all problems not answer all questions motivate you to take action Purpose of this presentation

6. help SMH friends and alums understand the impact of wills and trusts plan for your own and your family’s future our hope people will make sure wills are up-to-date AND consider making SMH a beneficiary Why are we doing this?

7. About the Msgr. Day Society established to promote wills, trusts and long-term gifts. pays tribute to Monsignor Day and encourages others to follow his examples of selflessness and generosity.

8. planning vacations vs. planning life’s goals a fundamental right ... but, you must have a valid will (and other documents too!) Background

9. prepared and signed by a legally competent person during lifetime states in writing what your wishes are conforms with formalities of the law directs in an orderly manner what happens with your assets key document in comprehensive plan Will: a legal document

10. name the person who will administer your estate state your wishes about who will be guardians of your minor children save taxes coordinate with your entire financial plan allow you to make charitable gifts What else can a will do?

11. you are intestate: leaving nothing to testify what your wishes were with regard to disposition of your property at your death MA has a will for you (MA General Laws, Chapter 190. Descent and Distribution of Real and Personal Property ) relatives share in the will in specified proportions distribution may not be what you want What if you have no will?

12. Massachusetts Probate and Family Court has exclusive jurisdiction over probate matters such as wills, trusts, guardianships, and conservatorships. Important to understand

13. you are intestate: leaving nothing to testify what your wishes were with regard to disposition of your property at your death MA has a will for you (M.G.L., ch. 190) relatives share in the will in specified proportions distribution may not be what you want What if you have no will?

14. personal property: all property other than real estate. real property: land and generally whatever is erected or growing upon or fixed to the land. kindred: next of kin; nearest blood relatives according to the law. per stirpes: a.k.a. by right of representation; a person takes or divides the share equally with brothers and sisters only that share of their parent Some definitions

29. Other opportunities

30. to collect and protect estate assets to pay the creditors to preserve and manage the property to distribute property to persons and charities named in a will Naming an executor

31. Probate Court will appoint someone generally, surviving spouse or one or more of the next of kin but, if no one available or willing, there is a process (under MGL Chap 193) to name an administrator Who is executor if no will?

32. you cannot “will” your children Probate Court will appoint the guardian usually court follows your wishes without a valid will Probate Court will decide what is best for your children Naming a guardian

33. in 2009, estate tax exemption is $3,500,000 in 2010, there is no estate tax in 2011, exemption is $1,000,000 proposals in Congress to stay at 2009 levels Saving taxes

34. unlimited federal estate tax deduction for assets passing to a qualified charity often possible to make a larger gift through your will than during lifetime can create memorial or endowment can “build a legacy” Making charitable gifts

35. to keep control to remain independent to save taxes, during lifetime and at death to protect and even increase income to avoid outliving your money Coordinating with other planning

36. Keep in mind…

37. by property ownership by beneficiary designation Make sure your will or your wishes do not conflict with these methods Property passes in other ways

38. Also keep in mind…

39. especially over concerns about nursing home care approach with great caution advance directives can be very important Elder law planning

40. What other documents? trust durable power of attorney health care proxy ethical will

41. an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. you (as grantor, settlor or trustor) can be the trustee and beneficiary of your own living trust. Trust

42. living trust – created during your lifetime (inter vivos trust) testamentary trust – created in your will Two types of trusts

43. created during your lifetime can hold assets during lifetime or after death (from “pour over” will) private document; assets avoid probate terms can be very flexible provide long-term property management can help save estate taxes can help you during your lifetime Living trust

44. created in your will can hold assets only after death terms can be very flexible testamentary trust is NOT a private document provide long-term property management can help save estate taxes Testamentary trust

45. you authorize someone to act on your behalf in legal or business matters. examples: pay bills, invest funds, manage (even buy and sell) property “durable” means that the person can act for you even if you cannot review his/her decisions Durable power of attorney

46. a document that allows you to appoint a person to make health care decisions in the event that you are incapable of making such decisions for yourself. extremely important to talk with your “agent” about your wishes important that your agent understands your wishes and shares your values Catholic value play important role Health care proxy

47. different from a financial will that bequeaths “valuables” ethical will bequeaths “values” how can your heirs know the “why” of your life and your estate plan the values that motivate you the blessings that you wish to give the lessons you wish to teach Ethical will

48. have I fulfilled my purpose? what will I be remembered for? what kind of legacy have I passed (or would like to pass) along? what do I want others to know about my life, values, experiences, etc? Questions to answer

49. health care proxy vs. living will Sacrament of the Sick Viaticum Catholic bio-ethical issues funeral Masses suffering passing on values Specific Catholic issues

50. A Christian steward is one who receives God’s gifts gratefully cherishes and tends them in a responsible and accountable manner shares them in justice and love with others returns them with increase to the Lord Stewardship issues

51. personal satisfaction make a gift when you thought it not possible make a bigger gift than you thought possible make statement for future generations What about charitable giving?

52. consider a “transformational” gift -- for both you and a cause you hold dear a gift that will sum up your life for generations to come a once-in-a-lifetime gift gift that can be made during life or at death Types of gifts

53. increase your income bypass capital gains tax increase tax deductions (income, estate and gift) pass on a larger estate you can “pay back,” make a difference, leave a legacy, help others Tax and financial advantages

54. bequest is the easiest (the best?) beneficiary designations charitable gift annuities for income charitable remainder trust for income and favorable capital gains tax treatment retained life estates, bargain sales, charitable lead trusts and on and on Charitable giving methods

55. specific asset or sum of money share of, or entire residue, of your estate conditional bequest flexibility or variance clause, if appropriate Masses to be celebrated in your memory Bequest options

56. Beneficiary designations life insurance policies personally owned group plans retirement plans pensions IRA plans 401k plans

57. Gift Annuity Examples

58. Explanation to follow By David Drislane ‘48 Charitable remainder trusts

59. gifts of a lifetime endowments major gifts not for everyone, but certainly for some remember the widow’s offering (Lk 21:1-4) Other Gift Ideas

60. donor-advised funds memorial funds scholarship funds general SMH support funds SMH program-specific funds contribute to existing or start your own Endowment donors will be inducted into the Richard Cardinal Cushing Society Endowments

61. Other Questions

62. think about spiritual issues select an attorney and make an appointment fill out your personal financial inventory decide on an executor and a guardian decide on the distribution of property consider charitable gifts in your will consider other documents and planning The steps in drawing a will

63. What do wills cost? it depends complexity time lawyer typically: $800 and up

64. how much estate planning does he or she do on a monthly basis? avoid lawyers who specialize in other areas MA Bar Association Lawyer Referral Service – 866-MASS-LRS or www.MassLawHelp.com How to choose a lawyer?

65. can deal only with “plain vanilla” situations the trick is to distinguish between simple and complex situations best to rely on personal, customized, individual assistance of a trained attorney How about software ?

66. What’s most important?

67. Take action immediately!!!

68. In closing,

69. Call your attorney or other financial advisor Call Richard Ely, Director of Gift Planning and Stewardship, Archdiocese of Boston Go to www.CatholicLegacy.com For more information

70. Thanks for your participation!

71. Richard Ely Director of Gift Planning and Stewardship The Catholic Foundation 66 Brooks Drive Braintree, MA 02194 617-779-3702 Richard_Ely@rcab.org www.CatholicLegacySociety.com Contact information