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.

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

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WHY: TO AVOID PROBATE

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WHEN: NOW.

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

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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

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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

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

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

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A LIVING WILL DOES NOT AVOID PROBATE COURT

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A GIFT HAS TO BE GIVEN BEFORE DEATH

BY AN INDIVIDUAL OR FROM THEIR TRUST

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

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

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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).

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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.

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RETAIN 45% OF YOUR ESTATE, OR

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

A POSSIBLE SCENARIO 

ESTATE AFTER EXCLUSIONS

$5M

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ESTATE TAXES @55% =

$2.75M

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LIFE INSURANCE PROCEEDS PAY ESTATE TAXES

$2.75M

NET PROCEEDS TO FAMILY

$ 5M

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

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

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

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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.

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

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

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DONATION TO A PUBLIC CHARITY: YOU RECEIVE A WRITE OFF ON YOUR AGI (ADJUSTED GROSS INCOME)-LINE 31, FORM 1040 CASH: 50% PROPERTY: 30%

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DONATION TO A CHARITABLE PRIVATE FAMIY FOUNDATION: YOU RECEIVE A WRITE OFF ON YOUR AGI (LINE 31, FORM 1040) CASH: 30% APPRECIATED PROPERTY: 20%

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

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CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS.

CONTACT IMHO 

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