WealthTrust-Arizona understands it is difficult to address the topic of death. We have put together a presentation to help you prepare for when you or a loved one passes on. We also made a free "Survivor's Journal" to accompany this presentation. The journal will walk you through the steps you will need to take to be prepared. Visit wealthtrust-arizona.com for the free download.

1. Preparing for
The Death of a Loved One
Presented by WealthTrust-Arizona And Colby & Thornes

2. Avoiding the topic of death
Thinking you are immortal
Children Aren’t proteCted from
Thinking your estate creditors
plan takes advantage
of ArizonA’s lAws survivors don’t hAve
and benefits Inexperienced document
drafter enough information
One Spouse handles everything
Are you concerned about Trusts unfunded
With little communication the surviving spouse
taking over at first
death?
How have you put your assets in your trust?
Have I
Trust not compliant with current laws protected my
children?
Beneficiary
designations not Is my estate
properly drafted plan up to date?
Children are unprotected from divorces

3. Planning Before Death: Important First Steps
Organize and Communicate
Both Spouses Should Meet with Advisors Both Spouses Should Understand Your Budget
Stress Test Financial & Estate Plan Both Spouses Should Understand Cash Flow
Prepare Survivor’s Journal
Financial Information Medical Information
Legal Information Insurance Information
Advisor Information Funeral & Burial Information
Plan Your Funeral
Prepare a Letter of Instructions to Let Loved
Prepay Expenses
Ones Know Your Wishes
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4. Prepare Your Survivors
Organizing & Communicating
• Know where to locate important documents and financial records
-birth and marriage certificates
-life insurance policies
-trust documents
•Set up a filing system
-review and sort documents by topic and/or account/asset
-set up a separate file for each topic
-store files in a safe but accessible place
•Set up phone and mail systems
-Phone: keep a notebook to record incoming and outgoing calls. Record
the date, caller’s name, description of the conversation, next steps, etc.
-Mail: record mail received and sent. Keep copies of all incoming and
outgoing mail. Note the date and address of all responses
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5. Prepare Your Survivors
Complete Your Survivor’s Journal
• Provides Pertinent Information for the Death Certificate
-Personal Information
-Family Information
• Provides Crucial Information for Loved Ones to Understand Finances
-Outlines Bank and Brokerage Accounts
-Outlines Automatic Deposits and Debits
-Identifies Brokerage Account Log In Information and Passwords
• Provides Quick Access to Personal Information
-Email Accounts and Passwords
-Social Networking Accounts and Passwords
-Location of Important Documents (i.e. safety deposit box, safes, etc.)
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6. Prepare Your Survivors
Memorial or Funeral Service
Immediate Tasks for You or Your Funeral Director:
•Notifying Vital Statistics (obtaining Death Certificates)
•Obtaining Legal Authorizations for Final Disposition
•Preparing and Publishing Obituaries
•Scheduling Services, Visitations and Receptions
•Coordinating Burial with Cemetery
•Notifying Social Security
•Coordinating State-to-State Burial Transfers
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7. Preparing For Memorial or Funeral Service
Funeral or Memorial
Personal Information Benefit Information Final Disposition
Preferences
• Age • Military Service • Military/Fraternal/ • Family Burial Plot
• Age of Spouse • Date of Enlistment Religious • Scattering
• Date of Birth • Date of Discharge • Funeral Home • Mausoleum Entombment
• Occupation • Branch • Clergy • Memorialization
• Education • Service Number • Music, Readings, etc. Preferences
• Father’s Name • Pallbearers
• Mother’s Maiden Name • Special Requests
• Social Security Number • Clothing/Jewelry, etc.
• Citizenship • Casket/Urn
• Birthplace • Burial Vault
• Father’s Birthplace • Flowers
• Mother’s Birthplace
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8. Planning Before Death: Estate Planning Options
Die With Die Without
Written Written
Instructions Instructions
Intestate
(no written
Trust instructions)
Arizona State Statute
Writes a Will For You
Will
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9. Planning Before Death: Who Goes to Probate?
Die Intestate
(without a
written plan)
Die with
Trust Die With a
Unfunded Will
(Pour Over Will)
Go to Exception: $50,000 or Less
Probate Total Estate Can Pass
After Death by Affidavit
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10. Planning Before Death Occurs: How to Avoid Probate
Create a • Fund Your Trust
Revocable • Jointly Owned Property Can Be
Controlled by the Survivor
Trust • Pour Over Will Minimizes Probate
Avoid
• IRAs (Beneficiary Designation)
Probate
Pass Assets •
•
Employer Sponsored Plans (Beneficiary Designation)
Life Insurance (Beneficiary Designation)
By Operation •
•
Annuities(Beneficiary Designation)
Rights of Survivorship Deeds or Beneficiary Deeds
• Jointly Owned Accounts and/or Rights of
of Law Survivorship Accounts
• Payable/Transfer on Death Accounts
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11. Planning Before Death:
Beneficiary Designation Choices to Avoid Probate
Surviving
Spouse **Helpful Hint**
Naming Your Trust as your
Beneficiary Should ONLY
be done with the help of
your Attorney
Spouse/Children Children/Direct
Combination Beneficiary
**Helpful Hint**
Incorrectly drafted
Beneficiary Designations
can result in accelerated
payment of income taxes
Properly
Properly Drafted Trust Drafted Trust for
for the benefit of the benefit of a
Children/Beneficiaries Spouse
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12. What to do After Death:
Death Administration Regardless of Plan Type
Revocable or
Last Will and
Trust Testament
Arrange for
Date of Death File Life Implement Apply for
Notify Social
Valuations for Insurance Beneficiary Government
Security
all Property Claims Designations and/or
Immediately
Request Form Prepare New Survivor’s
Order At Least • Appraisals of Benefits or
Real Property 712 from Beneficiary
10 Death Benefits for
Insurance Designations
Certificates • Estate Val for Minors
Company as necessary
All CUSIPs
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13. What to do After Death:
First Death Administration with a Trust or Will
Probate
Last Will and
• Executor Must File Pleadings with the
Testament Court to Be Authorized to Control Assets
• Executor is Fiduciary
• Executor Must Gather, Value and Notify the
Probate Court of All Estate Assets - Probate
Assets are Public Record
All to • Executor Must Notify Creditors
• Executor Must Keep an Inventory of All
Survivor Estate Assets and Expenses
• Distribute Assets to Beneficiaries
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14. What to do After Death:
First Death Administration with a Trust or Will
Revocable
Trust
Survivor’s Decedent’s
Trust Trust
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15. Preparing for the Death of a Loved One The Changing Estate Tax Law
Maximum Estate
Year of Transfer Estate Tax Exemption
& Gift Tax Rate
2001 $675,000 55%
2002 $1,000,000 50%
2003 $1,000,000 49%
2004 $1,500,000 48%
2005 $1,500,000 47%
2006 $2,000,000 46%
2007 $2,000,000 45%
2008 $2,000,000 45%
2009 $3,500,000 45%
2010 Estate Tax Repealed 35% (gifts only)
2011 $5,000,000 35%
2012 $5,000,000 35%
2013 $1,000,000 55%
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16. What to do After Death:
First Death Administration with a Trust or Will
Complex Estate Administration
Revocable • Contact Your Financial Advisor and Lawyer
Trust to Arrange a Meeting
• Notify Beneficiaries within 30 Days
• Obtain Date of Death Values for All Assets
• Prepare and File Estate Tax Return
Survivor’s Decedent’s • Obtain Taxpayer Identification Numbers;
Retitle Assets to Survivor’s and Decedent’s
Trusts
Trust Trust • File Annual Tax Returns for Both Trusts
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17. What to do After Death:
First Death Administration with a Trust or Will
Simple Estate
Revocable Administration
Trust • Contact Your Financial Advisor
and Lawyer to Arrange a Meeting
• Obtain Date of Death Values for
All Assets
• Remove the Decedent as Trustee
All to • Update All Assets and Accounts
Under the Survivor’s Social
Survivor Security Number
• Consider Disclaimer Trust For
Benefit of Spouse
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18. What to do After Death:
First Death Administration with a Trust or Will
Revocable Revocable Last Will and
Trust Trust Testament
Survivor’s Decedent’s All to All to
Trust Trust Survivor Survivor
Probate
Complex Estate Administration Simple Estate • Executor Must File Pleadings with the
• Contact Your Financial Advisor and Lawyer Court to Be Authorized to Control Assets
to Arrange a Meeting Administration • Executor is Fiduciary
• Notify Beneficiaries within 30 Days • Contact Your Financial Advisor • Executor Must Gather, Value and Notify
• Obtain Date of Death Values for All Assets and Lawyer to Arrange a Meeting the Probate Court of All Estate Assets -
Probate Assets are Public Record
• Prepare and File Estate Tax Return • Obtain Date of Death Values for
All Assets • Executor Must Notify Creditors
• Obtain Taxpayer Identification Numbers; • Executor Must Keep an Inventory of All
Retitle Assets to Survivor’s and Decedent’s •Remove the Decedent as Trustee
Estate Assets and Expenses
Trusts • Update All Assets and Accounts
Under the Survivor’s Social • Executor Must Distribute Assets to
• File Annual Tax Returns for Both Trusts Beneficiaries and Account to Court
Security Number
• Consider Disclaimer Trust For
Benefit of Spouse
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19. What to Do After Death:
Distributions to Beneficiaries - Outright and Free From Trust
Revocable
Trust Outright and Free From
Trust
• Assets Owned and Taxed in Child’s
Estate
• Assets Subject to Creditor’s Claims
including Claims in a Divorce
• Upon Child’s Death Assets Pass in
Accordance with Child’s Estate Plan
Outright to Outright to (presumably to spouse)
Child 1 Child 2
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20. What to Do After Death
Distributions to Beneficiaries - Beneficiary Trusts
Benefits of Beneficiary
Trusts
• Creditor Protection
Revocable •Divorce Protection – Automatic
Prenuptial Agreement
Trust • Preserve Estate Tax and GST
Exemptions
• Flexibility for Transfers to
Grandchildren
• Protect Children who Need Additional
Assistance
Beneficiary Trust for Beneficiary Trust for
Child 1 Child 2 Administration of
Beneficiary Trusts for
Children and Grandchildren
• Notify Beneficiaries of Trust Creation in
Writing Within 30 Days
Beneficiary Trust for Beneficiary Trust for • File Death Tax Return
Grandchild 1 Grandchild 2 • Obtain Date of Death Values for all Assets
• Obtain Taxpayer Identification Numbers
for Subtrusts
• Liquidate Assets as Necessary and Fund
Subtrusts
• Trustee Controls Trust Property
• Trustee Files Annual Tax Return
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21. Preparing for the Death of a Loved One The Changing Estate Tax Law
Maximum Estate
Year of Transfer Estate Tax Exemption
& Gift Tax Rate
2001 $675,000 55%
2002 $1,000,000 50%
2003 $1,000,000 49%
2004 $1,500,000 48%
2005 $1,500,000 47%
2006 $2,000,000 46%
2007 $2,000,000 45%
2008 $2,000,000 45%
2009 $3,500,000 45%
2010 Estate Tax Repealed 35% (gifts only)
2011 $5,000,000 35%
2012 $5,000,000 35%
2013 $1,000,000 55%
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22. What Happens After Death
Depends on What You Do Before Death
 Avoiding the Topic of Death Leaves Your Survivors Struggling to Pick Up
the Pieces
 Trusts Not Compliant with Current Laws Add Complexity for your
Beneficiaries
 Trusts Unfunded Can Result in Unnecessary Probates
 Beneficiary Designations Not Properly Drafted Can Cause Accelerated
Income Taxes
 Not Protecting Children can Result in Loss of Inheritance to a divorce,
taxes or even creditors
 Tax Laws Are Moving Targets Now
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23. Practical Tips
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24. Staying Organized: Dealing With Your Finances
Upon the Death of a Loved One
•Reevaluate your budget
•Reevaluate your investments, your goals and your risk tolerance
•You will need one original certificate per account/asset
•Discuss the benefits of consolidating assets and/or accounts
•Do not deposit or cash social security checks
•Once you notify financial institutions, accounts may be frozen
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25. Staying Organized: Dealing With Your Estate Plan
Upon the Death of a Loved One
Review and/or Update your Estate Plan
Consider adding a Co-Trustee
Review and/or Update Beneficiary Designations
Reevaluate your Insurance Needs
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26. Staying Organized: Dealing With Taxes
Upon the Death of a Loved One
File Final Federal Income Tax Return
File State Income Tax Return
File Estate Tax Return (if appropriate)
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27. Questions?
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28. On Behalf of All of Us at
Thank you
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29. DISCLOSURE PAGE
• Securities offered through Purshe Kaplan Sterling
Investments, member FINRA/SIPC, Headquartered at
18 Corporate Woods Blvd, Albany, NY 12211.
• Not FDIC insured. Not bank guaranteed. May lose
value, including loss of principal. Not insured by any
state or federal agency.
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