SAMPLE ESTATE PLAN OUTLINES

© 1997, 1998, 2004 By Lorin Castleman. All Rights Reserved

THE CASTLEMAN LAW FIRM
A Professional Corporation

5870 Stoneridge Mall Rd., Suite 207
Pleasanton, CA 94588
(925) 463-2221
fax: (925) 463-0328

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NOTE: THE FOLLOWING PLAN OUTLINES ARE EXAMPLES ONLY. EACH PERSON'S PLAN SHOULD BE TAILORED TO HIS OR HER OWN NEEDS. THERE MAY BE OTHER OPTIONS WHICH SHOULD BE CONSIDERED.

SINGLE INDIVIDUAL - ESTATE PROJECTED TO BE LESS THAN $1,500,000

• 1. Transfer Document Alternatives
  • Living Trust with pour-over will
  • Standard Will
  • Continuing Trust For Children and/or Grandchildren or others
  • Consider using asset protection trusts for creditor protection for descendants
  • Consider giving children and grandchildren special powers of appointment
    
• 2. Joint ownership documents, such as joint tenancy
  • Must be used with extreme caution
    
• 3. Beneficiary Designations - Life Insurance
  • Consider using Irrevocable Life Insurance Trust (ILIT) or Dynasty Trust
  • Seldom designate estate as a beneficiary

• 4. Beneficiary Designations -- Retirement Plan and IRAs
  • Never designate estate as primary or contingent beneficiary
  • Consider designating a trust rather than an individual as primary beneficiary for control purposes
  • Always seek professional advice first
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form
    
• 5. Durable Powers of Attorney
  • Asset Management
    • Should complement the revocable trust
  • Health Care

SINGLE INDIVIDUAL - ESTATE PROJECTED TO BE MORE THAN $1,500,000

• Same as for single person with smaller estate, with the following additions:
  
• 1. Gifting Program
  • Out right annual gifts of $11,000 per donee
  • Educational or medical gifts of any amount
    • Must be paid directly to provider
  • Gifts in Crummey Trust of not more than $11,000 per year per trust beneficiary
  • Better to limit to $5000 per year per beneficiary
    • Must carefully consider generation skipping transfer tax traps
    • Always seek professional advice first
  • Qualified Personal Residence Trust
  • Grantor Retained Annuity Trusts
  • Generation Skipping Planning
    • Irrevocable Life Insurance Trust
    • Dynasty Trust
      
• 2. Charitable Gift Considerations
  • Outright gifts during life or at death
  • Charitable Remainder Trusts
    • Always consider a CRT before entering into a binding agreement to sell a highly appreciated asset
  • Charitable Lead Trusts
    
• 3. Family Limited Partnership

MARRIED COUPLE - ESTATE PROJECTED TO BE LESS THAN $1,500,000

• 1. Transfer Document Alternatives
  • Living Trust with pour-over will
  • Standard Wills
  • Continuing Trust for Surviving Spouse, Children, and/or Grandchildren
  • Consider using asset protection trusts for creditor protection for descendants
  • Consider giving spouse, children and grandchildren special powers of appointment
    
• 2. Joint ownership documents, such as joint tenancy
  • Must be used with extreme caution
    
• 3. Beneficiary Designations - Life Insurance
  • Consider using Irrevocable Life Insurance Trust (ILIT) or Dynasty Trust
  • Seldom designate estate as a beneficiary
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form

• 4. Beneficiary Designations -- Retirement Plan and IRAs
  • Never designate estate as primary or contingent beneficiary
  • Consider designating a trust rather than spouse as primary beneficiary for control purposes
  • Always seek professional advice first
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form
    
• 5. Durable Powers of Attorney
  • Asset Management
    • Should complement the revocable trust
  • Health Care

MARRIED COUPLE - ESTATE PROJECTED TO BE BETWEEN $1,500,000 AND $3,00,000

• 1. Transfer Document Alternatives
  • Living Trust with pour-over will
  • Wills with Testamentary Trusts
  • By-pass trust for surviving spouse and/or issue
  • Marital Deduction Trust for surviving spouse (QTIP Trust)
  • Qualified Domestic Trust if spouse is not a citizen of U.S.
  • Provision for Disclaimer Trust
  • Continuing Trust for Children or Grandchildren
  • Consider giving spouse, children and grandchildren special powers of appointment
  • Consider using asset protection trusts for creditor protection for spouse and/or descendants
    
• 2. Joint ownership documents, such as joint tenancy
  • Must be used with extreme caution
    
• 3. Beneficiary Designations - Life Insurance
  • Consider using Irrevocable Life Insurance Trust (ILIT) or Dynasty Trust
  • Seldom designate estate as a beneficiary
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form

• 4. Beneficiary Designations -- Retirement Plan and IRAs
  • Never designate estate as primary or contingent beneficiary
  • Consider designating a trust rather than spouse as primary beneficiary for control purposes
  • Always seek professional advice first
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form
    
• 5. Durable Powers of Attorney
  • Asset Management
    • Should complement the revocable trust
  • Health Care

MARRIED COUPLE - ESTATE PROJECTED TO BE MORE THAN $3,000,000

• 1. Transfer Document Alternatives
  • Living Trust with pour-over will (or Standard Wills)
  • By-pass trust for surviving spouse and/or issue
  • Marital Deduction Trust for surviving spouse (QTIP Trust)
  • Contingent Disclaimer Trust
  • Qualified Domestic Trust if spouse is not a citizen of U.S.
  • Continuing Trust for Children or Grandchildren
  • Consider giving spouse, children and grandchildren special powers of appointment
    
• 2. Joint ownership documents, such as joint tenancy
  • Must be used with extreme caution
    
• 3. Beneficiary Designations - Life Insurance
  • Consider using Irrevocable Life Insurance Trust (ILIT) or Dynasty Trust
  • Seldom designate estate as a beneficiary
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form

• 4. Beneficiary Designations -- Retirement Plan and IRAs
  • Never designate estate as primary or contingent beneficiary
  • Consider designating a trust rather than spouse as primary beneficiary for control purposes
  • Always seek professional advice first
  • Be sure that beneficiary designations are compatible with the over all estate plan
  • May need to specially draft the designations rather than using provider's standard form
    
• 5. Durable Powers of Attorney
  • Asset Management
    • Should complement the revocable trust
  • Health Care
    
• 6. Gifting Program
  • Out right annual gifts of $11,000 per donee
  • Educational or medical gifts of any amount
    • Must be paid directly to provider
  • Gifts in Crummey Trust of not more than $11,000 per year per trust beneficiary
    • Better to limit to $5000 per year per beneficiary
    • Must carefully consider generation skipping transfer tax traps
    • Always seek professional advice first
  • Qualified Personal Residence Trust
  • Grantor Retained Annuity Trusts
    
• 7. Generation Skipping Planning
  • Irrevocable Life Insurance Trust
  • Dynasty Trust
    
• 8. Charitable Gift Considerations
  • Outright gifts during life or at death
  • Charitable remainder trusts
  • Charitable Lead Trusts
    
• 9. Family Limited Partnership

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