WELCOME TO OUR TRAINING SEMINAR
Agent Seminar
IRREVOCABLE FUNERAL TRUST
5 SECRETS IN MARKETING THE FUNERAL AND ESTATE TRUSTS
Speakers: Elder Law Attorney Karl Dovnik, Jr.
Michael K. O’Dell – National Sales Office
National Sales Office
Michael K. O’Dell
Attorney Karl Dovnik
Speakers
OUR GOAL IN THIS SEMINAR
You will learn How to Market Our Products
Medicaid Overview by Attorney Dovnik
- help your clients protect Assets by planning now
YOUR SUCCESS IS OUR #1 PRIORITY
We are here to partner with you and
help your business grow. We are
committed to help in anyway and
every aspect of your business.
YOUR SUCCESS IS OUR #1 PRIORITY!
Take good notes
You’ll Learn how to sell
the funeral and estate
trusts . New
presentation on the
estate trust.
Today – New Estate Trust Presentation
Michael K. O’Dell
National Sales Office
You’ll hear what happened to Mildred Today
National Known Elder Law Attorney
Our Products just make
common sense to the
senior that is trying to
protect their life savings
from a nursing home.
Remember, 93% of your
seniors don’t have long
term care insurance
Karl Dovnik, Jr.
The Funeral and Estate trusts from a legal standpoint
are an excellent way to protect assets…
A NURSING HOME CAN WIPE-OUT A
LIFETIME OF SAVINGS !
93% OF SENIORS OVER 65, DON’T HAVE
NURSING HOME INSURANCE !
Without Planning, Your Clients Could Lose Everything !
LOOK AT THE FACTS !
•AVERAGE COST- $7000.00 –NURSING HOME
•50% OF US WILL ENTER A NURSING HOME.
•70% OF SINGLES WILL REACH POVERTY
WITHIN 33 WEEKS.
•7 0UT OF 10 COUPLES WILL HAVE ONE
SPOUSE ENTER A NURSING HOME.
•A NEW CASE OF DIMENTIA ARISES EVERY
7 SECONDS.
The Legal planning that you do today…could determine if your children
and grandchildren inherit anything from you. Asset Protection is possible.
Advance Planning Can Protect Assets !
Let’s look at the New
Medicaid Rules
Deficit Reduction Act for 2005
DIVESTMENTS AND GIFTS
• EXTENDING THE THREE YEAR TRANSFER RULE
ON ASSETS TO A FIVE YEAR RULE. The Old Rule
was from the date of transfer, the new rule is from
the date of Medicaid Application.
Medicaid Eligibility Rules
Some states may vary on these Medicaid eligibility rules
Single person
Assets - $ 2000.00
Life Policy - $1500.00
Car - $ 4500.00
Personal possessions
Wedding rings
Funeral trust
Income - $ 45.00
Spousal Impoverishment
Rules for married couples
Assets - $50,000 – 109,540.00
Life Policy - $ 1,500.00
Car – Unlimited Value
Home - $ 500,000 Equity
Personal Possessions
Funeral Trust for both spouses
Income - $2739.00 Monthly
SINCE ONLY $1500.00 IS EXEMPT
FOR LIFE INSURANCE…THIS IS AN ISSUE
• Medicaid says only a $1500.00 life insurance
policy is exempt.
• Any policy over that amount in cash values is a
countable asset and would have to be spent
down for Medicaid Eligibility.
• Example: $10,000.00 Policy – (Paid Up)
9,850.00 Cash Value
• SOLUTION: 1035 Exchange to Funeral Trust.
(Tax Free) – Now it is Protected.
Some states may vary on Medicaid Rules, please consult an Elder Law Attorney in your state.
Funeral Trust Planning
• Dollars put into the Irrevocable Funeral Trust is
Exempt. (Client receives fair market value - No Five
Year Look-Back
• Protected from Creditors, Lawyers, Hospitals,
Nursing Homes and Medicaid.
• The last trust available without a look-back.
• Great Medicaid Planning Tool.
• The Financial Planner /Insurance Agent can now
assist their clients with this pre-planning trust.
Medicaid Rules may vary from state to state. You should consult and elder law attorney in
your state. This presentation is for illustrative purposes only.
ADVANCE PLANNING SHOULD BE DONE
FIVE YEARS IN ADVANCE TO PROTECT ASSETS
REVIEW – PLANNING YOU SHOULD RECOMMEND
•PLANNING TOOLS
•FUNERAL TRUST PLANNING
•POWER OF ATTORNEY
•HEALTHCARE AND FINANCIAL POA
•NETWORKING WITH AN ATTORNEY
•KEEP IT SIMPLE…THIS FUNERAL TRUST IS
EASY TO SELL…YOU DON’T HAVE TO BE A
EXPERT TO SELL THIS PRODUCT!
THIS FUNERAL TRUST PLANNING IS JUST COMMON SENSE!
FUNERAL TRUST
1.
2.
3.
4.
5.
6.
SINGLE PREMIUM LIFE PRODUCT
Premiums from $1000 - $15,000
ISSUE AGES 0-99
NO UNDERWRITING – GUARANTEED ISSUED
GREAT COMMISSIONS
FUNERAL TRUST PROVIDED BY INS. CO.
1. MEDICAID EXEMPT IN MOST STATES
2. 1035 EXCHANGES ACCEPTED
GREAT FOR PRE-PLANNING AND CRISIS PLANNING
The Irrevocable Funeral Trust
• Irrevocable Funeral Trust (IFT) - Funded by a single premium
life policy.
• Trust strictly specifies money is to be used for funeral
expenses.
• Life Policy grows @2.00% *
• At Death, the trust pays the funeral home directly with excess
funds being returned to the estate or family.
• Death claim - Agent gathers death certificate/bill from funeral
home and fills out claim form for family.
The Easiest Sale You’ll ever make
•
•
•
•
Four ways to fund the
IFT Trust
1035 Exchange from
Old Life Insurance
Policies that have a
Face Value of over
$1500.00
Cash - Write You a
check
10% Free Withdrawal
from an Annuity
Old Mature savings
Bonds
1035 Exchange Sale
FUNERAL TRUST
Life Insurance Policy
Protect This Policy
by Tax Free
Exchange
•Face Amount - $10,000
•Cash Value - $ 9200.00
Medicaid limits in most
states - $ 1,500.00
Provides Instant
Medicaid Protection
The 10% Free Withdrawal To Fund Trust
Existing Annuity
Policy - $
200,000.00
Value
10% Free Withdrawal from
An annuity to fund funeral
trust. ($20,000.00)
Use $20,000 to set up (2) Funeral Trusts at $10,000
per spouse. Now this money is Medicaid Exempt!
Your Biggest Competition
THE FUNERAL HOME
REASONS WHY YOUR CLIENT IS BETTER OFF DOING
BUSINESS WITH YOU.
The Funeral Home might go out of business
You might move closer to your children in your old age
The Funeral Home may merge with new owners
You might retire down in Florida
Our Funeral Trust doesn’t specify any particular funeral
home. This trust can be used with any funeral home at
time of death. WE OFFER FLEXIBILITY!
Case Study - #2
• Crisis Case – Client is already in an
YOU CAN USE A
institution.
POWER OF ATTORNEY
IF CLIENT IS UNABLE
TO SIGN.
Example: Age 85 – Female
$10,000 remaining in bank acct.
Two Choices – Spend $ 8000 on Nursing Home
Save $8000 with Funeral Trust
FUNERAL COSTS CAN VARY FROM $7000- $12,000
NATIONAL AVERAGE IS $8495.00
PACKAGE YOUR PRODUCTS
FUNEAL TRUST
FOR
IRENE SMITH
ABC FINANCIAL SERVICES, INC.
123 MAIN STREET
ANYTOWN, USA 00000
800-000-0000
PLANNER – TOM JONES
Funeral Trust Products
National Guardian Life
Learn how to complete an application
IT’S EASY AND SIMPLE
The Family Estate Trust
The Irrevocable Estate Trust
•Protect Money from Nursing Home
•From $1000 to $50,000
•Money You Want To Pass To Family
•You Want Asset Protection
•Medicaid Exempt – 60 Month Rule
•Trust Avoids Probate
•Advance Planning A Must !
•Pass Money to Children or Grand Children
Four Questions You must ask your client
to sell the Family Estate Trust
1.) Do you have nursing home insurance?
Four Questions
2.) Do you have money that is designated to
pass to your grandchildren or children?
These are funds that may be sitting in a
bank CD or Savings Account.
It’s money you don’t need to live on or
have to live on. It’s money you want to
know will get to children or family “NO
MATTER WHAT HAPPENS IN THE FUTURE”.
3.) The only concern that you have …is what
happens if you enter a nursing home
before death. The money you wanted to
pass to your children or family could be
wiped out by long term care costs.
4.) Are you familiar with the Family Estate
Trust? Let me explain the benefits….
Mildred’s Story and what happened
•In 2001, Mildred sold her home for approximately
$100,000.00 and moved into a senior apartment at
the age of 71. She was in good health.
•Her income was more than enough for her to pay
her bills. She had $2,350 monthly income and
the bills amounted to only $1,465 monthly.
•She did not have long term care and she was
concerned about the nursing home wiping out her
grandchildren and children inheritances.
•She wanted to leave $50,000 to her children, and
she was concerned that a nursing home could
wipe out this money before she died.
If Mildred would have
followed the advice from
her financial planner.
Today, she would be on
Medicaid with a $50,000
Estate Planning Trust to
her family.
Good Planning Can
Protect Assets !
•Her advisor said she should set up an “Estate Trust” with
the $50,000 and after 60 months passed, this money
would be protected from the nursing home and Medicaid.
•For some reason Mildred never completed the trust with
her advisor.
•In January of 2007, Mildred entered a nursing home after
a stroke. (*cost of nursing home was $6950 monthly)
•In August of 2009, Mildred applies for Medicaid with only
$1900.00 left in the bank.
The Estate Trust Can Protect Assets
If Mildred would have
planned, she could be in
the nursing home and
still pass $50,000 to her
family.
Don’t let your clients
become like Mildred.
Help them plan now
while they are healthy
to protect assets.
Estate Planning – Estate Planning Trust Worksheet
Protecting Assets for our family by using the
“Estate Trust”
Name of client - _____________________________age - ____
Spouse - _________________________age-____
Address - ___________________________City - _________________State_____Zip -___________
Telephone - _________________________
_____Our Goals are to plan in advance with the “Estate Trust” to protect funds from the nursing home and
Medicaid. We realize by planning 60 months in advance with the estate trust, these funds will be
exempt in this irrevocable trust.
_____ These are funds that we definitely want to pass to our children, grandchildren or charity.
_____ These are funds that we don’t need to live on or depend on for income.
_____ We don’t have long term care insurance. We are concern what would happen if we entered a nursing home.
_____We understand that this trust is an irrevocable trust designated to pass these funds probate free to
our named beneficiaries.
Our Goals planning with the “Family Estate Trust”
$ ________ (each) to our grandchildren
$____________ - Church
$________ (each) to our children.
$____________ - Charity
$ _________ - other
This is the same life application as the funeral trust
Existing Clients
You already have relationship
Do an Annual Review with Each of your customers. The best
target age is from 60-90.
•Help Your clients up date their accounts at bank with P.O.D.
•Review their estate planning and financial documents
•CD holders that have CD’s coming due.
•Passbook Savings customers
•SELL THE FUNERAL TRUST CONCEPT TO THEM.
Annual review letter
Every town has a SENIOR CENTER
SENIOR CENTERS ARE
ALWAYS LOOKING
FOR SPEAKERS AT
THEIR LUNCHEONS.
ESPECIALLY ON
SENIOR ISSUES
There are probably 20 Senior Centers within 30
miles of your office. Almost every town has a senior
center. They usually meet weekly for a luncheon.
Go to each senior center and introduce yourself as a
speaker that they might like to have at their up
coming meetings. NEVER SELL PRODUCT WHEN
YOU SPEAK…TALK CONCEPTS ONLY!
Celebrity Seminars Travel Nationally
CELEBRITY
SEMINARS
THINK OUTSIDE THE BOX
LOOK-A-LIKE
–
SOUND
A
LIKE
WITH YOUR MARKETING
WHEN WAS THE LAST TIME YOU HAD THIS MANY PEOPLE
CELEBRITY
LOOK A
LIKE FINANCIAL
– SOUND ASEMINAR?
LIKE SEMINARS
ATTEND
YOUR
We Specialize in Financial Planning Seminars
SENIORS LOVE OUR “LAS VEGAS” SHOW
NATIONALLY KNOWN CELEBRITY SEMINARS
Admission ticket
SPEAKER – Attorney Karl Dovnik, Jr.
15th
Annual Estate Planning Expo
ADMISSION TICKET
DELCO ESTATE PLANNING SERVICES, LLC
October 11th , 2007 – 12:30 P.M.
“Howard Johnson Conference Center”
Wausau, Wisconsin
FREE
ENTERTAINMENT
AFTER SEMINAR
12:30 P.M – 4 P.M – ESTATE PLANNING COURSE
ARRIVE EARLY FOR BEST SEATING…THIS SEMINAR IS FREE…BUT YOU NEED THIS TICKET FOR ADMISSION
After the invitation is sent, the seniors call into our 800 number
To confirm seating. On this number we ask them to leave their
Name, address, city, and the number of people that will be
Attending…We then send this ticket to them a week or more in
Advance…They won’t forget…ticket is used for admission.
Boost Your Income with The Funeral Trust and Estate Trust
During the last 3 weeks
I made more than I could
believe. GREAT Product!
CALL DELCO BROKERAGE SERVICES
WRITE (3) CASES PER MONTH with Funeal Trust
AND EARN HUGE COMMISSIONS
A CASE BEING HUSBAND AND WIFE AT $10,000 PREMIUM
EACH = $20,000 PER CASE X 3 CASES = $ 60,000.00
60,000 x 12% = $ 7200.00 COMMISSION (BASE ON AGE 72)
Write two Estate Trust s @ $50,000 = $100,000 premium
Commission base on age 72 = $ 12,000.00 Approximately
Total Commission for Month = $19,200.00
START SELLING THE FUNERAL TRUSTS
INCREASE YOUR MONTHLY INCOME BY $7800.00
•
•
Direct Mailers
Annual Review Letter
Get Excited and start
marketing to your
existing clients.
Huge Opportunity to make
an EXTRA 7K MONTHLY
OR MORE!
START WRITING
BUSINESS TODAY!
Contract today
With us to get on next
training webinar
Delco Brokerage Services, a division of Delco Estate Planning Services, LLC disclaims and implied or actual warranties as to the accuracy of this material or any liability with respects to it.
Not intended for public distribution. This is not intended to be legal advice. Medicaid rules vary from state to state. Please consult an elder law attorney for exact rules pertaining funeral
trusts in your state.