Planit:Estate Analysis of Expenses and Distributions Case Study

Country Specific

Canada English

When it comes to Estate Planning, one of the key tools for clients to identify their wishes is their Last Will and Testament. On the Will Information screen you can identify and distributions the client and spouse wish to make to their children, charities, or other beneficiaries as well as key features of the wills and administrative powers. You can identify the total estate distribution and to the various beneficiaries. And by identifying costs on death, probate fees and taxes you can begin the process of planning for expenses and how to reduce them. Example Problem One: Harold and Donna Woodhaven are revising their will, and they you to do an estate analysis to see the costs they will incur, and the distribution of their estate among various beneficiaries. They assume burial costs will be about $10000, and their probate and other fees are at a rate of %5. They both have wills and powers of attorney for their property effective January of this year. Harold stated that he wants 30% of his estate to immediately go to his son, and then $10000 to go to his nephew. Donna wants $20000 to go to her favorite charity and then $200000 to their son, Ben. They have both named each other as the beneficiaries for the residual estate. They have appointed Harold and Donna Woodhaven as the guardians for their son, and they are both the executors for each other’s estate. Note: For Canada, the Woodhavens expect that their marginal tax rate on their estate will be 46%. Solution using the Will Information Screen: After selecting the Woodhavens from the Client Search page, change the process flow under Client Data Entry to Integrated Planning. Use the navigation panel to proceed to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter $10000 in the field Assumed Burial Costs. 2. Set the rate for Probate and Other Fees to %5 3. For Canada, set the Marginal Tax Rate on Estate for both Harold and Donna to 46%. For all other countries, set the Marginal Tax Rate to 0%. 4. Harold indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property, but not for Have a Power of Attorney for Personal Care. 5. This information was effective from January 1st of last year, so change the Effective From fields, under Have a Will and Have a Power of Attorney for Property, to 20XX-01-01, as appropriate. 6. Repeat steps 4 and 5 for Donna, since her information was exactly the same. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Harold’s first partial distribution, enter 30% in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary setting to Child. 8. For Harold’s second partial distribution, enter $10000 in the Dollar Amount field, leaving the Percent field blank. Put the Beneficiary as Other, since there is no specific setting for nephew. 9. For Donna’s distribution change the first Dollar Amount field to $20000. Change the drop-down menu for the Beneficiary to Charitable Distribution. 10. For Donna’s second partial distribution, enter $200000 in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary setting to Child. 11. The Residual Distribution setting is at Spouse for both Harold and Donna, which in this case is correct. 12. Click Save The last section identifies any Guardians, Executors or Trustees. In the text box for Guardians, type the names Harold and Donna Woodhaven. Under Executors, write Donna is Harold’s executor, and Harold is Donna’s executor. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR In the Your Working Documents screen, click on Preparing Reports – Risk Management. Click on the Radio button beside Estate Analysis. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready for you to download. When the document has completed calculating and is ready to view, click the Download button. To identify costs to the estate, scroll down to Final Expenses section for any scenario. The costs will consist of Probate and Other Fees, Assumed Burial Costs, and Taxes on Registered Investments, applied at the marginal tax rate identified. These taxes and costs will be subtotaled under the section Total Expenses. For countries with estate taxes, there will be some lines for Estate Tax brackets, totaled under the Total Expenses section as well. To identify the distribution of accounts, look under the Assets section at the top of the scenario. If an account is designated to a child or spouse, the account value will appear under the Children or Spouse column. The screen shot shows a scenario for second death, so any accounts designated to the Surviving Spouse now go to the Estate. The Estate Distribution at the bottom of the scenario shows partial and residual distributions, and below it the Total Distribution identifies the net amount going to each beneficiary type.

United States of America
{{{United States Workbook Template}}}

Argentina
{{{Argentina Workbook Template}}}

Brazil
{{{Brazil Workbook Template}}}

United Kingdom

When it comes to Estate Planning, one of the key tools for clients to identify their wishes is their Last Will and Testament. On the Will Information screen you can identify and distributions the client and spouse wish to make to their children, charities, or other beneficiaries as well as key features of the wills and administrative powers. You can identify the total estate distribution and to the various beneficiaries. And by identifying costs on death, probate fees and taxes you can begin the process of planning for expenses and how to reduce them. Example Problem One: Harold and Donna Woodhaven are revising their will, and they you to do an estate analysis to see the costs they will incur, and the distribution of their estate among various beneficiaries. They assume burial costs will be about £1,500, and their probate and other fees are at a rate of 2.6%. They both have wills and powers of attorney for their property effective January of this year. Harold stated that he wants 30% of his estate to immediately go to his son, and then £10,000 to go to his nephew. Donna wants £20,000 to go to her favorite charity and then £200,000 to their son, Ben. They have both named each other as the beneficiaries for the residual estate. They have appointed Harold and Donna Woodhaven as the guardians for their son, and they are both the executors for each other’s estate. Note: For Canada, the Woodhavens expect that their marginal tax rate on their estate will be 0%. Solution using the Will Information Screen: After selecting the Woodhavens from the Client Search page, change the process flow under Client Data Entry to Integrated Planning. Use the navigation panel to proceed to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter £1,500 in the field Assumed Burial Costs. 2. Set the rate for Probate and Other Fees to 2.6% 3. For Canada, set the Marginal Tax Rate on Estate for both Harold and Donna to 0%. For all other countries, set the Marginal Tax Rate to 0%. 4. Harold indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property, but not for Have a Power of Attorney for Personal Care. 5. This information was effective from January 1st of last year, so change the Effective From fields, under Have a Will and Have a Power of Attorney for Property, to 20XX-01-01, as appropriate. 6. Repeat steps 4 and 5 for Donna, since her information was exactly the same. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Harold’s first partial distribution, enter 30% in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary setting to Child. 8. For Harold’s second partial distribution, enter £10,000 in the Dollar Amount field, leaving the Percent field blank. Put the Beneficiary as Other, since there is no specific setting for nephew. 9. For Donna’s distribution change the first Dollar Amount field to £20,000. Change the drop-down menu for the Beneficiary to Charitable Distribution. 10. For Donna’s second partial distribution, enter £200,000 in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary setting to Child. 11. The Residual Distribution setting is at Spouse for both Harold and Donna, which in this case is correct. 12. Click Save The last section identifies any Guardians, Executors or Trustees. In the text box for Guardians, type the names Harold and Donna Woodhaven. Under Executors, write Donna is Harold’s executor, and Harold is Donna’s executor. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR In the Your Working Documents screen, click on Preparing Reports – Risk Management. Click on the Radio button beside Estate Analysis. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready for you to download. When the document has completed calculating and is ready to view, click the Download button. To identify costs to the estate, scroll down to Final Expenses section for any scenario. The costs will consist of Probate and Other Fees, Assumed Burial Costs, and Taxes on Registered Investments, applied at the marginal tax rate identified. These taxes and costs will be subtotaled under the section Total Expenses. For countries with estate taxes, there will be some lines for Estate Tax brackets, totaled under the Total Expenses section as well. To identify the distribution of accounts, look under the Assets section at the top of the scenario. If an account is designated to a child or spouse, the account value will appear under the Children or Spouse column. The screen shot shows a scenario for second death, so any accounts designated to the Surviving Spouse now go to the Estate. The Estate Distribution at the bottom of the scenario shows partial and residual distributions, and below it the Total Distribution identifies the net amount going to each beneficiary type.

Russia
{{{Russia Workbook Template}}}

China
{{{China Workbook Template}}}

Malaysia
Template:Estate of Expenses and Distributions Case Study

Singapore

When it comes to Estate Planning, one of the key tools for clients to identify their wishes is their Last Will and Testament. On the Will Information screen you can identify and distributions the client and spouse wish to make to their children, charities, or other beneficiaries as well as key features of the wills and administrative powers. You can identify the total estate distribution and to the various beneficiaries. And by identifying costs on death, probate fees and taxes you can begin the process of planning for expenses and how to reduce them. Example Problem One: Alvin and Grace Cheng are revising their will, and they you to do an estate analysis to see the costs they will incur, and the distribution of their estate among various beneficiaries. They assume burial costs will be about $20,000, and their probate and other fees are at a rate of 2%. They both have wills and powers of attorney for their property effective January of this year. Alvin stated that he wants 25% of his estate to immediately go to his son, and then $40,000 to go to his nephew. Grace wants 5% to go to her favorite charity and then $400,000 to their son, Ben. They have both named each other as the beneficiaries for the residual estate. They have appointed Alvin and Grace Cheng as the guardians for their son, and they are both the executors for each other’s estate. Note: For Canada, the Chengs expect that their marginal tax rate on their estate will be 0%. Solution using the Will Information Screen: After selecting the Chengs from the Client Search page, change the process flow under Client Data Entry to Integrated Planning. Use the navigation panel to proceed to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter $20,000 in the field Assumed Burial Costs. 2. Set the rate for Probate and Other Fees to 2% 3. For Canada, set the Marginal Tax Rate on Estate for both Harold and Donna to 0%. For all other countries, set the Marginal Tax Rate to 0%. 4. Harold indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property, but not for Have a Power of Attorney for Personal Care. 5. This information was effective from January 1st of last year, so change the Effective From fields, under Have a Will and Have a Power of Attorney for Property, to 20XX-01-01, as appropriate. 6. Repeat steps 4 and 5 for Grace, since her information was exactly the same. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Alvin’s first partial distribution, enter 25% in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary setting to Child. 8. For Alvin’s second partial distribution, enter $40,000 in the Dollar Amount field, leaving the Percent field blank. Put the Beneficiary as Other, since there is no specific setting for nephew. 9. For Grace’s distribution change the first Dollar Amount field to 5%. Change the drop-down menu for the Beneficiary to Charitable Distribution. 10. For Grace’s second partial distribution, enter $400,000 in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary setting to Child. 11. The Residual Distribution setting is at Spouse for both Alvin and Grace, which in this case is correct. 12. Click Save The last section identifies any Guardians, Executors or Trustees. In the text box for Guardians, type the names Alvin and Grace Cheng. Under Executors, write Grace is Alvin’s executor, and Alvin is Grace’s executor. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR In the Your Working Documents screen, click on Preparing Reports – Risk Management. Click on the Radio button beside Estate Analysis. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready for you to download. When the document has completed calculating and is ready to view, click the Download button. To identify costs to the estate, scroll down to Final Expenses section for any scenario. The costs will consist of Probate and Other Fees, Assumed Burial Costs, and Taxes on Registered Investments, applied at the marginal tax rate identified. These taxes and costs will be subtotaled under the section Total Expenses. For countries with estate taxes, there will be some lines for Estate Tax brackets, totaled under the Total Expenses section as well. To identify the distribution of accounts, look under the Assets section at the top of the scenario. If an account is designated to a child or spouse, the account value will appear under the Children or Spouse column. The screen shot shows a scenario for second death, so any accounts designated to the Surviving Spouse now go to the Estate. The Estate Distribution at the bottom of the scenario shows partial and residual distributions, and below it the Total Distribution identifies the net amount going to each beneficiary type.

Hong Kong
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India
{{{India Workbook Template}}}

Israel
{{{Israel Workbook Template}}}

Caribbean
Jamaica {{{Jamaica Workbook Template}}} Trinidad and Tobago {{{Trinidad and Tobago Workbook Template}}} Barbados {{{Barbados Workbook Template}}} Bermuda {{{Bermuda Workbook Template}}} Bahamas {{{Bahamas Workbook Template}}} Puerto Rico {{{Puerto Rico Workbook Template}}}

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