Advanced Estate  Planning for Advisors Presents:
Legend TRUST Passes Non-Taxable Passes Taxable Passes with a Discounted Value Creditor Protected Trust Creditor Protected ...
The Revocable Living Trust More Than a Piece of Paper!!!
Issues Revocable Living Trusts Can (But Usually Don’t) Address <ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapac...
Basic Estate Plan <ul><li>Revocable Living Trust </li></ul><ul><li>Pour Over Will </li></ul><ul><li>Durable Power of Attor...
Simple Revocable Living Trust <ul><li>Foundation of any Estate Plan </li></ul><ul><li>Primary Purpose is Usually to Avoid ...
Simple Revocable Living Trust <ul><li>Pros </li></ul><ul><ul><li>Avoid Probate </li></ul></ul><ul><li>Cons </li></ul><ul><...
Avoid Probate <ul><li>Trust must be funded to avoid probate </li></ul>
ADVISOR ALERT <ul><li>Wouldn’t offering to check your client’s financial statements to make sure they are in the name of t...
RLT Pour Over  Will SURVIVING SPOUSE KIDS Durable  Power of Attorney Health Care Directive HIPPA
Sophisticated Revocable Living Trust <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity...
Provide for Incapacity <ul><li>Add Disability Trustee </li></ul><ul><ul><li>Manages trust assets in event of disability </...
ADVISOR TIP <ul><li>Wouldn’t this be a good place to talk about Long Term Care Insurance? </li></ul><ul><ul><li>You are 6 ...
Protect Minor Children <ul><li>Guardianship Nomination </li></ul><ul><ul><li>Post Death Guardians </li></ul></ul><ul><ul><...
ADVISOR TIP <ul><li>Wouldn’t this be a good opportunity to talk to parents of young children about life insurance to repla...
Estate Tax Reduction <ul><li>Trust will split into three parts at death of first spouse </li></ul><ul><ul><li>Survivor Tru...
ADVISOR TIP <ul><li>Wouldn’t this be the perfect opportunity to talk about using life insurance as an discounted way to pa...
Provide Asset Protection for Surviving Spouse <ul><li>QTIP and Bypass Trusts </li></ul><ul><ul><li>If properly drafted, sp...
ADVISOR ALERT <ul><li>Wouldn’t this be a good place to talk about using a corporate trustee with the surviving spouse to a...
RLT Pour Over  Will SURVIVING SPOUSE KIDS Durable  Power of Attorney Health Care Directive BYPASS MARITAL (QTIP) HIPPA
Protective Revocable Living Trust <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </...
Ensure Plan is Carried Out <ul><li>Do not let children be trustees of each others trust </li></ul><ul><ul><li>They will ha...
ADVISOR ALERT <ul><li>Talking to your clients about what will happen to their kids after they die is a great way to introd...
Protect Children from Blowing Inheritance <ul><li>The average trust, when  </li></ul><ul><li>received outright, is gone wi...
ADVISOR ALERT <ul><li>Wouldn’t talking to your client about their child blowing an inheritance be a good time to talk abou...
Protect Children from Creditors and Lawsuits <ul><li>If a child does not have the power to distribute assets to themselves...
ADVISOR ALERT <ul><li>Wouldn’t discussing children’s creditors be a good time to talk about beefing up your client’s own a...
Protect Children from Divorce <ul><li>If the child has the right to receive the property outright, they have the right to ...
ADVISOR ALERT <ul><li>Take a look at your client’s life insurance policies, and if the beneficiary is a child outright, as...
Prevent Children from Fighting <ul><li>Neutral Corporate Trustee </li></ul><ul><ul><li>Keep the kids mad at Corporate Trus...
ADVISOR ALERT <ul><li>If clients have significant personal property that they want to leave to one child or another, they ...
RLT SURVIVING SPOUSE KIDS BYPASS QTIP RESIDUE CHILD #1 CHILD #2
Legacy Plan <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protec...
Prevent the IRS from  Getting a Second Estate Tax <ul><li>Generation Skipping (“Dynasty”) Planning </li></ul><ul><li>Uses ...
ADVISOR ALERT <ul><li>Life Insurance is a great tool for multi-generational planning because you can leverage the GSTT Exe...
RLT Survivor BYPASS QTIP RESIDUE Child Exempt Child  Non-Exempt Dynasty Trust
LLCs In Estate Planning Protect Assets and Minimize Estate Taxes
Revocable Living Trusts  and Asset Protection <ul><li>Revocable Living Trusts Provide No Asset Protection prior to death o...
Asset Protection LLC
Putting Asset Protection into Your Revocable Living Trust <ul><li>LLC </li></ul><ul><ul><li>Wyoming or Nevada </li></ul></...
LLC Estate Planning Bonus <ul><li>Discounting </li></ul><ul><ul><li>All assets in LLC will receive discount when client di...
Bullet Resistant, Not Bullet Proof
RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child  Non-Exempt Dynasty Trust
THE SPOUSAL  GIFTING TRUST Understanding the Ultimate Trust
Spousal Gifting Trust <ul><li>Removes Assets From Estate </li></ul><ul><li>Protects Assets from Creditors </li></ul><ul><l...
What it is <ul><li>Husband Creates Trust for Wife </li></ul><ul><li>Wife Creates Trust for Husband </li></ul><ul><ul><li>W...
How Money Gets in SGT <ul><li>Crummey Gifts </li></ul><ul><ul><li>Spouse </li></ul></ul><ul><ul><li>Kids </li></ul></ul><u...
Results (10% growth) $6,948,227.60 $17,370,569.00 $96,000.00 5 30 $2,419,296.00 $6,048,240.00 $96,000.00 5 20 $673,196.80 ...
ADVISOR ALERT <ul><li>Life Insurance is an excellent purchase </li></ul><ul><ul><li>Remember that once a trustee beneficia...
Supercharge the SGT <ul><li>Combine with discounts in LLC to produce amazing results </li></ul><ul><li>Example </li></ul><...
Results of Supercharged SGT $10,422,341 $26,055,853 $144,000 33% $96,000 5 30 $3,628,944 $9,072,360 $144,000 33% $96,000 5...
RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child  Non-Exempt Dynasty Trust Husband Wife
Avoid the Estate Tax Entirely <ul><li>Use a Testamentary Charitable Lead Annuity Trust (TCLAT) </li></ul><ul><ul><li>At De...
TCLAT <ul><li>$1,000,000 that is subject to estate taxes </li></ul><ul><ul><li>10% growth </li></ul></ul><ul><ul><li>20 ye...
RLT BYPASS RESIDUE RLT Child Exempt Child  Non-Exempt Dynasty Trust Wyoming Close LLC Husband Wife Spousal Gifting Trusts ...
THE END QUESTIONS???
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Advanced Estate Planning For Advisors

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This is a great powerpoint for financial advisors and CPAs on advanced trust and estate planning techniques

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Advanced Estate Planning For Advisors

  1. 1. Advanced Estate Planning for Advisors Presents:
  2. 2. Legend TRUST Passes Non-Taxable Passes Taxable Passes with a Discounted Value Creditor Protected Trust Creditor Protected LLC Charity
  3. 3. The Revocable Living Trust More Than a Piece of Paper!!!
  4. 4. Issues Revocable Living Trusts Can (But Usually Don’t) Address <ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Ensure Plan is Carried Out </li></ul><ul><li>Protect Children from Blowing Inheritance </li></ul><ul><li>Protect Children from Creditors and Lawsuits </li></ul><ul><li>Protect Children from Divorce </li></ul><ul><li>Prevent Children from Fighting </li></ul><ul><li>Dynasty Trust Planning </li></ul><ul><li>Eliminate All Estate Taxes via a TCLAT </li></ul>
  5. 5. Basic Estate Plan <ul><li>Revocable Living Trust </li></ul><ul><li>Pour Over Will </li></ul><ul><li>Durable Power of Attorney </li></ul><ul><li>Certificate of Trust </li></ul><ul><li>Assignment of Personal Property </li></ul><ul><li>Advanced Health Care Directive </li></ul><ul><li>HIPPA Authorization </li></ul><ul><li>Guardianship Nomination </li></ul><ul><li>Personal Property Memorandum </li></ul>
  6. 6. Simple Revocable Living Trust <ul><li>Foundation of any Estate Plan </li></ul><ul><li>Primary Purpose is Usually to Avoid Probate </li></ul><ul><li>Grantor, Trustee, Beneficiary </li></ul><ul><li>Funding </li></ul>
  7. 7. Simple Revocable Living Trust <ul><li>Pros </li></ul><ul><ul><li>Avoid Probate </li></ul></ul><ul><li>Cons </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Ensure Plan is Carried Out </li></ul><ul><li>Protect Children from Blowing Inheritance </li></ul><ul><li>Protect Children from Creditors and Lawsuits </li></ul><ul><li>Protect Children from Divorce </li></ul><ul><li>Prevent Children from Fighting </li></ul><ul><li>Dynasty Trust Planning </li></ul><ul><li>Eliminate All Estate Taxes via a TCLAT </li></ul>
  8. 8. Avoid Probate <ul><li>Trust must be funded to avoid probate </li></ul>
  9. 9. ADVISOR ALERT <ul><li>Wouldn’t offering to check your client’s financial statements to make sure they are in the name of the trust be a good way to make sure you know what all their investable assets are? </li></ul>
  10. 10. RLT Pour Over Will SURVIVING SPOUSE KIDS Durable Power of Attorney Health Care Directive HIPPA
  11. 11. Sophisticated Revocable Living Trust <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Cons </li></ul><ul><li>Ensure Plan is Carried Out </li></ul><ul><li>Protect Children from Blowing Inheritance </li></ul><ul><li>Protect Children from Creditors and Lawsuits </li></ul><ul><li>Protect Children from Divorce </li></ul><ul><li>Prevent Children from Fighting </li></ul><ul><li>Dynasty Trust Planning </li></ul><ul><li>Eliminate All Estate Taxes via a TCLAT </li></ul>
  12. 12. Provide for Incapacity <ul><li>Add Disability Trustee </li></ul><ul><ul><li>Manages trust assets in event of disability </li></ul></ul><ul><ul><li>Will usually be different than Post Death Trustee </li></ul></ul><ul><li>Definition of Incapacity </li></ul><ul><ul><li>Wrong Way </li></ul></ul><ul><ul><ul><li>According to State Law </li></ul></ul></ul><ul><ul><li>Right Way </li></ul></ul><ul><ul><ul><li>Spouse and Physician </li></ul></ul></ul><ul><ul><ul><li>Two Physicians </li></ul></ul></ul><ul><ul><ul><li>Disability Panel </li></ul></ul></ul>
  13. 13. ADVISOR TIP <ul><li>Wouldn’t this be a good place to talk about Long Term Care Insurance? </li></ul><ul><ul><li>You are 6 times more likely to become incapacitated then die in any given year </li></ul></ul><ul><ul><li>Nursing Home costs can decimate an estate </li></ul></ul><ul><ul><li>Good way to protect family </li></ul></ul>
  14. 14. Protect Minor Children <ul><li>Guardianship Nomination </li></ul><ul><ul><li>Post Death Guardians </li></ul></ul><ul><ul><li>Disability Guardians </li></ul></ul><ul><ul><li>Temporary Guardians </li></ul></ul><ul><li>Common Pot Trust </li></ul><ul><ul><li>Don’t split shares until children are a certain age </li></ul></ul><ul><ul><li>Treat children like the parents would have </li></ul></ul>
  15. 15. ADVISOR TIP <ul><li>Wouldn’t this be a good opportunity to talk to parents of young children about life insurance to replace income? </li></ul>
  16. 16. Estate Tax Reduction <ul><li>Trust will split into three parts at death of first spouse </li></ul><ul><ul><li>Survivor Trust </li></ul></ul><ul><ul><li>Bypass Trust </li></ul></ul><ul><ul><li>Marital (QTIP) Trust </li></ul></ul>
  17. 17. ADVISOR TIP <ul><li>Wouldn’t this be the perfect opportunity to talk about using life insurance as an discounted way to pay the estate tax? </li></ul><ul><ul><li>Use someone else’s money to pay the estate tax </li></ul></ul><ul><ul><li>But keep control of the cash in the policy </li></ul></ul><ul><ul><ul><li>Stay tuned… </li></ul></ul></ul>
  18. 18. Provide Asset Protection for Surviving Spouse <ul><li>QTIP and Bypass Trusts </li></ul><ul><ul><li>If properly drafted, spouse will not be able to lose assets to creditors, lawsuits, remarriage and divorce, etc. </li></ul></ul><ul><li>You can also protect the kids against a future remarriage by requiring a pre-nup or cutting off spouse entirely </li></ul>
  19. 19. ADVISOR ALERT <ul><li>Wouldn’t this be a good place to talk about using a corporate trustee with the surviving spouse to assist with accounting, tax returns, etc.? </li></ul>
  20. 20. RLT Pour Over Will SURVIVING SPOUSE KIDS Durable Power of Attorney Health Care Directive BYPASS MARITAL (QTIP) HIPPA
  21. 21. Protective Revocable Living Trust <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Ensure Plan is Carried Out </li></ul><ul><li>Protect Children from Blowing Inheritance </li></ul><ul><li>Protect Children from Creditors and Lawsuits </li></ul><ul><li>Protect Children from Divorce </li></ul><ul><li>Prevent Children from Fighting </li></ul><ul><li>Cons </li></ul><ul><li>Dynasty Trust Planning </li></ul><ul><li>Eliminate All Estate Taxes via a TCLAT </li></ul>
  22. 22. Ensure Plan is Carried Out <ul><li>Do not let children be trustees of each others trust </li></ul><ul><ul><li>They will hate each other </li></ul></ul><ul><li>If they are trustee of their own trust, they can do whatever they want </li></ul><ul><li>Family members may not be willing to take on liability of being trustee </li></ul><ul><ul><li>If they knew what that liability was!!! </li></ul></ul><ul><li>Corporate Trustee solves these problems </li></ul>
  23. 23. ADVISOR ALERT <ul><li>Talking to your clients about what will happen to their kids after they die is a great way to introduce your corporate trustee </li></ul><ul><ul><li>Increase your credibility </li></ul></ul><ul><ul><li>Make clients plans work </li></ul></ul><ul><ul><li>Keep assets </li></ul></ul>
  24. 24. Protect Children from Blowing Inheritance <ul><li>The average trust, when </li></ul><ul><li>received outright, is gone within 18 months </li></ul><ul><ul><li>Emotional problems will follow </li></ul></ul><ul><li>Corporate Trustee </li></ul>
  25. 25. ADVISOR ALERT <ul><li>Wouldn’t talking to your client about their child blowing an inheritance be a good time to talk about establishing a financial plan for the child? </li></ul>
  26. 26. Protect Children from Creditors and Lawsuits <ul><li>If a child does not have the power to distribute assets to themselves, they do not have the power to distribute assets to their creditors </li></ul><ul><li>Protective Trust </li></ul><ul><ul><li>Corporate Trustee </li></ul></ul><ul><ul><li>No Withdrawal Rights </li></ul></ul><ul><li>If Beneficiary Must be Trustee </li></ul><ul><ul><li>Use Distribution Trustee </li></ul></ul>
  27. 27. ADVISOR ALERT <ul><li>Wouldn’t discussing children’s creditors be a good time to talk about beefing up your client’s own asset protection plan? </li></ul><ul><ul><li>IRAs and 401ks </li></ul></ul><ul><ul><li>Life Insurance </li></ul></ul><ul><ul><li>Gifting into Trusts </li></ul></ul><ul><ul><li>FLLCs </li></ul></ul><ul><ul><li>Etc. </li></ul></ul>
  28. 28. Protect Children from Divorce <ul><li>If the child has the right to receive the property outright, they have the right to put it in a joint account with their spouse, and probably will do so </li></ul><ul><li>Protective Trust </li></ul><ul><ul><li>Corporate Trustee </li></ul></ul><ul><li>Distribution Trustee </li></ul>
  29. 29. ADVISOR ALERT <ul><li>Take a look at your client’s life insurance policies, and if the beneficiary is a child outright, ask if they want the child’s spouse to be a 50% owner of that policy in the event of a divorce </li></ul><ul><ul><li>ILIT </li></ul></ul><ul><ul><li>New Policy </li></ul></ul>
  30. 30. Prevent Children from Fighting <ul><li>Neutral Corporate Trustee </li></ul><ul><ul><li>Keep the kids mad at Corporate Trustee, not at each other </li></ul></ul><ul><ul><li>Never use one kid as another’s trustee </li></ul></ul><ul><ul><ul><li>Recipe for disaster </li></ul></ul></ul><ul><li>Personal Property </li></ul><ul><ul><li>Most commonly fought over by kids </li></ul></ul><ul><ul><li>Personal Property memorandum </li></ul></ul>
  31. 31. ADVISOR ALERT <ul><li>If clients have significant personal property that they want to leave to one child or another, they may want to even out distributions with life insurance to keep the peace </li></ul>
  32. 32. RLT SURVIVING SPOUSE KIDS BYPASS QTIP RESIDUE CHILD #1 CHILD #2
  33. 33. Legacy Plan <ul><li>Pros </li></ul><ul><li>Avoid Probate </li></ul><ul><li>Provide for Incapacity </li></ul><ul><li>Protect Minor Children </li></ul><ul><li>Minimize Estate Taxes </li></ul><ul><li>Provide Asset Protection for Surviving Spouse </li></ul><ul><li>Ensure Plan is Carried Out </li></ul><ul><li>Protect Children from Blowing Inheritance </li></ul><ul><li>Protect Children from Creditors and Lawsuits </li></ul><ul><li>Protect Children from Divorce </li></ul><ul><li>Prevent Children from Fighting </li></ul><ul><li>Prevent the IRS from Getting a Second Estate Tax </li></ul><ul><li>Cons </li></ul><ul><ul><li>Eliminate All Estate Taxes via a TCLAT </li></ul></ul>
  34. 34. Prevent the IRS from Getting a Second Estate Tax <ul><li>Generation Skipping (“Dynasty”) Planning </li></ul><ul><li>Uses GSTT Exemption to carve out trusts that are designed to pass free of estate and GST tax to future generations </li></ul><ul><li>Kids use up non-exempt assets for their use </li></ul>
  35. 35. ADVISOR ALERT <ul><li>Life Insurance is a great tool for multi-generational planning because you can leverage the GSTT Exemption </li></ul>
  36. 36. RLT Survivor BYPASS QTIP RESIDUE Child Exempt Child Non-Exempt Dynasty Trust
  37. 37. LLCs In Estate Planning Protect Assets and Minimize Estate Taxes
  38. 38. Revocable Living Trusts and Asset Protection <ul><li>Revocable Living Trusts Provide No Asset Protection prior to death of first spouse </li></ul><ul><li>Client’s creditors can take everything away </li></ul><ul><li>Insurance can only cover so much </li></ul>
  39. 39. Asset Protection LLC
  40. 40. Putting Asset Protection into Your Revocable Living Trust <ul><li>LLC </li></ul><ul><ul><li>Wyoming or Nevada </li></ul></ul><ul><ul><li>Charging Order is sole remedy </li></ul></ul><ul><ul><ul><li>Phantom Income </li></ul></ul></ul><ul><li>Watch Out for Fraudulent Conveyance </li></ul><ul><li>Great Tool for Protecting Assets while keeping full control </li></ul><ul><li>More than one LLC provides better protection </li></ul>
  41. 41. LLC Estate Planning Bonus <ul><li>Discounting </li></ul><ul><ul><li>All assets in LLC will receive discount when client dies </li></ul></ul><ul><ul><ul><li>Significant reduction in estate taxes </li></ul></ul></ul><ul><li>Discounts </li></ul><ul><ul><li>Depend on assets LLC owns </li></ul></ul><ul><ul><li>Depend on Operating Agreement drafting </li></ul></ul><ul><ul><li>Depend on state law </li></ul></ul><ul><ul><li>Planning is everything </li></ul></ul>
  42. 42. Bullet Resistant, Not Bullet Proof
  43. 43. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust
  44. 44. THE SPOUSAL GIFTING TRUST Understanding the Ultimate Trust
  45. 45. Spousal Gifting Trust <ul><li>Removes Assets From Estate </li></ul><ul><li>Protects Assets from Creditors </li></ul><ul><li>Allows for Greater Gifting to Kids in Future </li></ul><ul><li>Allows you to Retain Control of Assets </li></ul><ul><li>Flexible Investment Options </li></ul>
  46. 46. What it is <ul><li>Husband Creates Trust for Wife </li></ul><ul><li>Wife Creates Trust for Husband </li></ul><ul><ul><li>Watch for Reciprocal Trust Doctrine </li></ul></ul><ul><li>Each spouse is trustee of the other’s Trust </li></ul><ul><ul><li>Each spouse can use their trust for Health, Education, Maintenance and Support </li></ul></ul><ul><li>Each spouse is main beneficiary of the other’s Trust </li></ul><ul><ul><li>Passes to kids, grandkids, upon death </li></ul></ul><ul><ul><li>Not to other spouse </li></ul></ul>
  47. 47. How Money Gets in SGT <ul><li>Crummey Gifts </li></ul><ul><ul><li>Spouse </li></ul></ul><ul><ul><li>Kids </li></ul></ul><ul><ul><li>Grandkids </li></ul></ul><ul><li>Use $1,000,000 exemption </li></ul><ul><ul><li>5 and 5 rule </li></ul></ul><ul><ul><li>Funds with at least $240,000 </li></ul></ul><ul><li>Have Trust Purchase Property </li></ul>
  48. 48. Results (10% growth) $6,948,227.60 $17,370,569.00 $96,000.00 5 30 $2,419,296.00 $6,048,240.00 $96,000.00 5 20 $673,196.80 $1,682,992.00 $96,000.00 5 10 $257,879.50 $644,699.00 $96,000.00 5 5 $42,240.00 $105,600.00 $96,000.00 5 1 Estate Tax Savings Amount in SGTs Annual Gifts made to SGTs Number of Family Members Year of SGT
  49. 49. ADVISOR ALERT <ul><li>Life Insurance is an excellent purchase </li></ul><ul><ul><li>Remember that once a trustee beneficiary dies it goes to the kids, not back to the other spouse </li></ul></ul><ul><ul><li>If life insurance is used, this doesn’t matter </li></ul></ul>
  50. 50. Supercharge the SGT <ul><li>Combine with discounts in LLC to produce amazing results </li></ul><ul><li>Example </li></ul><ul><ul><li>5 family members (spouses, three kids) </li></ul></ul><ul><ul><li>$12k per year each family member </li></ul></ul><ul><ul><li>10% growth </li></ul></ul><ul><ul><li>33% discount </li></ul></ul><ul><ul><ul><li>$18k per person instead of $12k </li></ul></ul></ul><ul><ul><ul><li>$1,500,000 exemption instead of $1,000,000 </li></ul></ul></ul>
  51. 51. Results of Supercharged SGT $10,422,341 $26,055,853 $144,000 33% $96,000 5 30 $3,628,944 $9,072,360 $144,000 33% $96,000 5 20 $1,009,795.20 $2,524,488 $144,000 33% $96,000 5 10 $386,819 $967,048 $144,000 33% $96,000 5 5 $63,360 $158,400 $144,000 33% $96,000 5 1 Estate Tax Savings Total FMV of SGT Actual FMV of Gifts Discount Discounted Value of SGT Gifts # of Family Members Year Of SGT
  52. 52. RLT Survivor BYPASS QTIP RESIDUE RLT Survivor Child Exempt Child Non-Exempt Dynasty Trust Husband Wife
  53. 53. Avoid the Estate Tax Entirely <ul><li>Use a Testamentary Charitable Lead Annuity Trust (TCLAT) </li></ul><ul><ul><li>At Death </li></ul></ul><ul><ul><ul><li>Any amounts subject to estate tax go to TCLAT </li></ul></ul></ul><ul><ul><ul><ul><li>Estate Tax Free </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Zero Out the Remainder using 7520 rate </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Whatever’s left goes to kids tax free </li></ul></ul></ul></ul><ul><ul><li>Results </li></ul></ul>
  54. 54. TCLAT <ul><li>$1,000,000 that is subject to estate taxes </li></ul><ul><ul><li>10% growth </li></ul></ul><ul><ul><li>20 years after death </li></ul></ul><ul><ul><li>$1,687,493 to charity </li></ul></ul><ul><ul><li>$1,894,941.95 to kids </li></ul></ul><ul><ul><ul><li>Plus possible foundation management fees </li></ul></ul></ul><ul><li>Compare $500,000, same terms </li></ul><ul><ul><li>$3.3 million to kids (assuming none distributed) </li></ul></ul><ul><ul><li>But $500k went to IRS </li></ul></ul><ul><ul><li>No charitable legacy </li></ul></ul>
  55. 55. RLT BYPASS RESIDUE RLT Child Exempt Child Non-Exempt Dynasty Trust Wyoming Close LLC Husband Wife Spousal Gifting Trusts Survivor QTIP TCLAT
  56. 56. THE END QUESTIONS???

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