THOUGHTS ABOUT THE ESTATE PLANNING PROCESS Presented by: Mary E. Vandenack, Esq. Parsonage Vandenack Williams LLC 5332 S. 138th Street Omaha, NE 68137 (402) 504-1300
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Mary E. Vandenack Mary E. Vandenack is a founding member of the law firm of Parsonage Vandenack Williams LLC. Mary practices in the inter-related areas of tax, business, real estate, health care and estate and business succession planning. Mary excels at dealing with the issues of closely held businesses (whether an international operation or a one person shop). In the health care arena, Mary regularly represents physicians, physician organizations, health care facilities, group health plans, ambulatory surgery centers, billing companies, pharmaceutical companies, and specialty health care providers. In the general business arena, Mary has significant experience working with real estate developers, real estate investors, real estate management companies, contractors, and companies in the telecommunications, information technology, construction, engineering, agribusiness, financial, and manufacturing industries. Mary's work with closely held businesses and their owners has also provided numerous opportunities to provide service involving complex estate planning strategies as well as in the non-profit area. Mary graduated magna cum laude from Creighton University School of Law in 1992, where she served as Editor-in-Chief of the Creighton Law Review, won a Domestic Moot Court competition as Best Oral Advocate, and was inducted into the Alpha Sigma Nu Honor Society. Mary received her Bachelors Degree in Business and Accounting, summa cum laude, from College of Saint Mary. Recently, Mary was nominated as a “Woman of Distinction in Omaha Business” and was named one of Omaha’s Best Dressed Professionals by Strictly Business Magazine. Mary is featured in Metro Magazine bimonthly regarding estate planning topics. Mary regularly speaks and writes in her practice areas. Mary is active in the national bar association promoting the use of technology in the practice of law and in improving the cost effectiveness and efficiency of legal services. In addition, Mary is a member of various task forces promoting changes in legislation and regulations governing tax, business and health care. In her spare time, Mary shares her love for health and wellness by teaching aerobics, weight training, pilates, and yoga to adults, seniors and children.
The Estate Planning Team
The exact team depends on estate size, complexity, and particular issues of the estate.
Team members may include the following:
Attorney CPA Investment Manager Banker Insurance Agent Trust Officer Non profit Manager
Key Business Manager
Member of Clergy or Other Confidante
The Estate Planning Team
For very large estates, some investment management firms and major banks have individuals whose sole role is to quarterback the overall team
The Estate Planning Team
For the smaller estate, less professionals may be involved and roles will have more overlap.
Investment Management Options
Family Business Office Various Advisors with different types of expertise Manager of Managers Individual Manager Estate Structure and the client are key to determining the fit
Attorney and Accountant
Ascertain knowledge and experience related to estate planning Estate planning requires a wide variety of specialized knowledge
The Estate Planning Team
A good estate planning team includes a quarterback and a client-focused team
When to Review Your Estate Plan
A move to another state A significant change in assets (including an inheritance) A change in family situation Retirement Law changes At least every three years
The “Issues” in the Estate Planning Process
Aging, Illness, Disability Death Children Money
Key Skills in Managing the Estate Planning Process
Recognizing the Emotional Impact of the Issues
Key Skills in Managing the Estate Planning Process Understand the Client
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The Client’s Desired Plan Define the Goals
Key Skills in Managing the Estate Planning Process Get to know the client
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A client is unlikely to share the details of his or her child’s drug abuse problems with a girl in a suit at a first meeting. Establish rapport. If rapport is unachievable, be willing to involve someone else.
Key Skills in Managing the Estate Planning Process Know the deterrents to the estate planning process and how to manage them
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Costs Results are intangible Emotional impact of confronting death now Personal time expenditure Proper planning is detailed and complex Estate planning is about death, money and family
Key Skills in Managing the Estate Planning Process Identify the goals that are most important to the client. Some possibilities are: • • • • • •
Provide for client for balance of his/her life Provide for spouse or partner Provide for children Provide for grandchildren Education of children, grandchildren Protect a family business
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Asset Distribution Provide for heirs with special needs Provide for a pet Make a gift to charity Asset protection Medicaid planning Disability planning Minimize death taxes Minimize administration expenses
Key Skills in Managing the Estate Planning Process Skills needed to work with the emotional aspects of the process
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The word “counselor” applies
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Do not get emotionally involved
Listening Awareness Experience is irreplaceable in the process. If you don’t have it, include it on the team. Acceptance
Key Skills in Managing the Estate Planning Process Skills needed generally
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Have your own house in order Knowledge of the Estate Planning Process and its tools Have lots of contacts/relationships/resources regarding tax, investment, real estate, accounting, business, insurance, valuation, charitable techniques, etc. You can’t be everything to everyone so have the resources to create a team that can be everything Ability to explain complex topics in simple terms in a matter of fact way Use written explanations and visual aids (flowcharts, spreadsheets) all the time
Key Skills in Managing the Estate Planning Process Dealing with Team Members
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The quarterback should be the one who has the ability to stay totally focused on client goals and who can lead the rest of the team to plan in a way that accomplishes the goals Define roles clearly, in writing Determine who should be included in what aspects of the process and communicate about that. Every meeting does not require every team member Follow through and follow up Recognize inherent biases
Key Skills in Managing the Estate Planning Process Dealing with Family Members Key focus is the client whose estate is being planned
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Family members should generally not be included early in the planning process unless there is a specific reason Get to know family dynamics before jumping in
ESTATE PLANNING TOOLS
Basic will Probate avoidance trust “Living Trust” • Credit shelter planning • QTIP planning Power of attorney for legal issues Advance directives • Power of attorney for health care • Declaration Trusts for minors Educational accounts Custodial accounts Premarital Agreements Special Needs Trusts
ESTATE PLANNING TOOLS
Family Foundations Retirement Accounts Annuities Life Insurance Trusts Real Estate Partnerships Long Term Care Coverage Prepaid Funeral Plans Conduit Trusts Asset Protection Trusts Generation Skipping Trusts Dynasty Trusts Family Limited Partnerships Charitable Remainder Trusts Grantor Retained Annuity Trusts
For the PVWLaw Guide to Estate Planning and Information List to assist in assembling estate planning data, go to: www.pvwlaw.com
