IMHO Estate Planning PPT Presentation

DURING YOUR LIFE TIME YOU PAY TAXES: EARNED INCOME TAXES. CAPITAL GAINS TAXES. SALES TAXES. PROPERTY TAXES. GIFT TAXES ON GIFTS ABOVE $2MILLION.

UPON DEATH OF BOTH SPOUSES YOU PAY:

ESTATE TAXES.

WHAT: ANY ASSET BECOMES AN ESTATE UPON DEATH OF BOTH SPOUSES.

WHY: TO AVOID PROBATE

WHEN: NOW.

PROBATE COURT: SPECIALIZED COURT THAT ONLY CONSIDERS CASES THAT DEAL WITH THE DISTRIBUTION OF DECEASED PERSON’S ESTATE

ANY INDIVIDUAL WHO HAS MORE THAN $100K IN ASSET VALUE WILL END UP IN PROBATE COURT UNLESS THEY HAVE CREATED THE FOLLOWING:

1. FAMILY LIVING TRUST

2. CHARITABLE PRIVATE FAMILY FOUNDATION

3. CHARITABLE REMAINDER TRUST AND/OR OTHER TRUSTS

BY CREATING A FAMILY LIVING TRUST AND/OR CHARITABLE FAMILY PRIVATE FOUNDATION YOU IMMEDIATELY SAVE 25% OF YOUR ASSETS BY AVOIDING PROBATE COURT & LEGAL FEES

A LIVING WILL IS NOT A SUBSTITUTE FOR A FAMILY LIVING TRUST

A LIVING WILL IS A COMPLEMENTARY DOCUMENT TO A FAMILY LIVING TRUST

A LIVING WILL DOES NOT AVOID PROBATE COURT

A GIFT HAS TO BE GIVEN BEFORE DEATH BY AN INDIVIDUAL OR FROM THEIR TRUST

GIFT EXCLUSION IS $1 MILLION PER SPOUSE FOR 2009 THRU 2011 (WHILE LIVING ONLY)

GIFT CAN BE GIVEN TO MULTIPLE PEOPLE, BUT LIMITED TO $1 MILLION TOTAL FOR EACH SPOUSE

UPON DEATH OF BOTH SPOUSES, THE ESTATE WILL BE SUBJECT TO ESTATE TAXES OF UP TO 55% OF THE ESTATE VALUE AFTER ESTATE TAX EXCLUSIONS ($1 MILLION STARTING IN 2011).

ONE OF THE MANY TOOLS THAT IS AVAILABLE TO REDUCE ESTATE TAXES IS A CHARITABLE PRIVATE FAMILY FOUNDATION

COPING WITH ESTATE TAXES TO BUY LIFE INSURANCE FROM YOUR

ASSETS IN THE TRUST TO PAY UP TO 55% OF YOUR ESTATE TAXES.

RETAIN 45% OF YOUR ESTATE, OR RETAIN YOUR LIFE PROCEEDS AND

DONATE YOUR ESTATE TO YOUR CHARITABLE PRIVATE FAMILY FOUNDATION AND PAY NO ESTATE TAXES.

A POSSIBLE SCENARIOESTATE AFTER EXCLUSIONS $5M

ESTATE TAXES @55% = $2.75M

LIFE INSURANCE PROCEEDS PAY ESTATE TAXES $2.75M

NET PROCEEDS TO FAMILY $ 5M

CHARITABLE FAMILY FOUNDATION CAN BECOME THE BENEFICIARY OF ANYTHING IN EXCESS OF ESTATE TAX EXCLUSION, WITHOUT PAYING ESTATE TAXES.

YOUR ADULT CHILDREN OR FAMILY MEMBERS (AS TRUSTEES OF THE CHARITABLE PRIVATE FAMILY FOUNDATION) CAN DISTRIBUTE ANNUALLY TO THE CHARITY OF YOUR CHOICE.

ALL ASSETS PASS THRU TO THE SURVIVING SPOUSE UPON THE 1ST DEATH: FILE WITH IRS, NO ESTATE TAXES.

UPON 2ND DEATH, ALL ASSETS PASS THRU TO BENEFICIARIES OF THE FAMILY LIVING TRUST:* FILE WITH IRS, PAY UP TO 55% ESTATE

TAXES ON THE VALUE OF ESTATE AFTER EXCLUSIONS.

DURING YOUR LIFETIME, TRANSFER ASSETS TO YOUR OWN CHARITABLE PRIVATE FAMILY FOUNDATION & SAVE ON EARNED INCOME TAX DOLLARS (CURRENT VALUE)

UPON DEATH, TRANSFER ASSETS TO YOUR OWN CHARITABLE FAMILY FOUNDATION & SAVE ON ESTATE TAX DOLLARS

DONATION TO A PUBLIC CHARITY: YOU RECEIVE A WRITE OFF ON

YOUR AGI (ADJUSTED GROSS INCOME)-LINE 31, FORM 1040

CASH: 50%

PROPERTY: 30%

DONATION TO A CHARITABLE PRIVATE FAMIY FOUNDATION: YOU RECEIVE A WRITE OFF ON YOUR AGI (LINE 31, FORM 1040)

CASH: 30%

APPRECIATED PROPERTY: 20%

PUT YOUR CHARITABLE VISION TO WORK WITH CURRENT EARNED INCOME TAX DOLLARS.

CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS.

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