ESTATE PLANNING 101 ERICA L. JOHNSON

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1 ESTATE PLANNING 101 ERICA L. JOHNSON 950 South Cherry Street, Suite 1650 Denver, Colorado ESTATE PLANNING PROBATE TRUST ADMINISTRATION MEDICAID PLANNING

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3 ERICA L. JOHNSON Erica Johnson is an Associate in the law firm of AMBLER & KEENAN, LLC. She is admitted to practice law before the Supreme Court of the State of Colorado and the United States District Court for the District of Colorado. Erica received her B.S. in Broadcasting Management from Northern Arizona University in She was awarded her Juris Doctor from the University of Denver College of Law. Erica s practice emphasizes estate planning, probate, trust administration and second parent adoption. She is a member of the American Academy of Estate Planning Attorneys. Her other professional associations include membership in the Denver Bar Association, Trusts and Estates section of the Colorado Bar Association, Colorado Women s Bar Association, Women s Estate Planning Council and National Association of Insurance and Financial Advisors. She is a frequent speaker on the topic of estate planning for non-traditional families. In 2012, Erica was awarded the philanthropic leadership award by the Denver Foundation. Before beginning her law career, Erica was the Vice President of Marketing and Operations for a regional jewelry store chain in Colorado and Wyoming. She is a Colorado native, born and raised in Littleton, Colorado. is dedicated to providing cost effective service to their clients as they accumulate, preserve, and transfer wealth. Erica believes that an estate plan will be most effective when it is crafted by a team comprised of the client s most trusted advisors.

4 NOTES Ambler & Keenan LLC 950 S Cherry St, Suite 1650 Denver, Colorado (303)

5 Introduction to Estate Planning Erica L. Johnson, Esq. Ambler & Keenan, LLC Attorneys at Law Erica L. Johnson B.S. in Broadcasting Management, Northern Arizona University Juris Doctorate, University of Denver Member, Colorado Women s Estate Planning Council Member, National Association of Insurance and Financial Advisors Member, American Academy of Estate Planning Attorneys Member, Trusts and Estates Section, Colorado Bar Association Welcome and Congratulations! Page 1

6 Our Seminar Agenda What if you Do Not Have a Plan Wills and Trusts Other Documents to Consider How to choose an attorney Questions & Answers What Happens if You Don t Plan The State of Colorado has a plan for you What Happens if You Don t Plan If you are incapacitated, the court will appoint someone to make your decisions. Conservator. Priority Spouse/Partner in a Civil Union Adult Children (equal priority) Parent(s) Adult you lived with for last 6 months Page 2

7 What Happens if You Don t Plan - Intestacy When you die without a plan Assets pass in the following order: Spouse/Partner in a Civil Union Issue Parents Siblings Nieces and Nephews Grandparents Aunts and Uncles So do you need a Will or a Trust? What does a Will do? Passes your wealth Appoints your Personal Representative Names a guardian for the kids Can create a trust after your death Page 3

8 Testamentary Trust Designate Trustee Money paid for health, education, maintenance and support Distribution to 21-year-old without it You set termination ages Solves problem of leaving assets to minor children if no trust is set up How does a Will work? Only effective at death Goes through probate process Court appoints PR and monitors estate Taxes get paid Creditors get paid Beneficiaries get what s left Court closes estate How does a Revocable Trust work? Agreement created during life It is an entity that can own property You name Trustee and Successor Trustee You transfer ownership of assets to trust House is owned by The Erica Johnson Living Trust Investment account is owned by Erica Johnson, Trustee of the Erica Johnson Living Trust Page 4

9 How does a Revocable Trust work? When you are incapacitated, trust doesn t stop working Successor Trustee takes over and manages assets for benefit of you and family Avoid need for conservator No Court involvement How does a Revocable Trust work? When you die, trust doesn t die Successor Trustee takes over and trust acts as Will substitute Trustee pays taxes Trustee pays creditors Trustee distributes what is left to beneficiaries, or continues to hold in trust as directed if children are minors Why use a Trust? Avoid expensive probate (varied by state) Maintain Privacy Avoid multiple probates If incapacity is imminent Complex planning Page 5

10 Other Documents Complete Plan What Additional Documents do you need? Pricing is Flat Fee for Complete Plan. Durable General Power of Attorney For Financial Decisions Durable? Appoints person you choose Names backup agent Limits on agent s actions if they are not a spouse, descendant or ancestor Healthcare Power of Attorney For Medical Decisions Appoints person you choose Names backup agent Specify right to visit Nominate Guardian Organ Donation Page 6

11 Living Will 2 Doctors say in writing: Terminal disease, injury or illness + Unable to receive information or communicate Remove life-sustaining procedures Direct termination of feeding Legally binding on healthcare providers Colorado added Persistent Vegetative State in 2010 Disposition of Last Remains Legally binding Cremate? Bury? Other? Suggestions for ceremony Priority list created by statute if no designation is made Putting the Final Pieces Together Property Power of Attorney Estate Plan Living Trust Pour Over Will Living Will Health Care Power of Attorney Page 7

12 The Most Complete Estate Plan The Basics: Will or Living Trust and Will Property Power of Attorney Health Care Power of Attorney Living Will The Most Complete Estate Plan Explanation of Documents Disposition of Last Remains HIPAA Release Location Lists Anatomical Gift Form Complete Estate Planning FLP QPRT GRAT GRUT APT ILIT CRT W I L L or Lifetime Giving T R U S T Child s Trust Page 8

13 Be careful Internet Documents Computer Software Write Your Own Will Book Friend s Advice How to Select an Attorney Estate Planning Attorney Knowledgeable Experienced What is their reputation? Do you like him or her? Member About the Academy: Exclusive national organization of attorneys dedicated to estate planning law Required continuing education National estate planning experts available American Academy of Estate Planning Attorneys Page 9

14 Estate Planning Seminar Evaluation Any Questions? Thank You for Coming and we look forward to seeing you soon Helping People Preserve Their Wealth Page 10

15 NOTES Ambler & Keenan LLC 950 S Cherry St, Suite 1650 Denver, Colorado (303)

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