Charitable Planning Presentation

754 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
754
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
8
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Charitable Planning Presentation

  1. 1. CHARITABLE PLANNING: TOOLS TO IMPLEMENT YOUR GENEROSITY<br />Holland Museum<br />P. Haans Mulder, JD, MST, CFP®<br />Cunningham Dalman, P.C.<br />321 Settlers Road<br />Holland, MI 49423<br />(616) 392-1821<br />phmulder@holland-law.com<br />
  2. 2. Background<br />Partner at Cunningham Dalman, P.C.<br />Masters in Tax, CFP®, and specialize in estates/elder law and business planning<br />Cunningham Dalman, P.C. has been serving the greater Holland/Zeeland since 1900<br />Serving the Holland area since 1900<br />
  3. 3. Overview<br />Background assumptions<br />Common client goals<br />Status on estate taxes<br />Vehicles for charitable planning<br />Serving the Holland area since 1900<br />
  4. 4. Background Assumptions<br />You have an estate plan<br />You are charitably inclined<br />You need to plan for estate taxes (i.e. high net worth)<br />Only have time to cover general concepts<br /> <br />Serving the Holland area since 1900<br />
  5. 5. Common Client Goals<br />Give money to charity and children<br />Create a stream of income <br />Get children involved in philanthropy<br />Avoid or minimize estate taxes<br />Minimize income taxes<br /> <br />Serving the Holland area since 1900<br />
  6. 6. Status of Estate Tax Laws<br />?<br />Serving the Holland area since 1900<br />
  7. 7. Status of Estate Tax Laws<br />Plan for the worst, but hope for the best…<br />Worst is exemption will be $1 million in 2011 and will stay at that level<br />Possible exemption will be $3-5 million<br />Serving the Holland area since 1900<br />
  8. 8. Vehicles for Charitable Planning<br />Outright gifts<br />Split-interest gifts<br />Gifts tied to a charity or the community foundation<br />Permanent structure for giving<br />Serving the Holland area since 1900<br />
  9. 9. Outright Gifts<br />Variety of assets to use<br />Simple to do<br />Tax benefit for gifting appreciated property<br />Be aware of charitablededuction limitations<br />Serving the Holland area since 1900<br />
  10. 10. Split-Interest Gifts <br />Gift is “split” between a charity and an individual or individuals (which could include yourself)<br />Charitable remainder trusts<br />Charitable lead trusts<br />Serving the Holland area since 1900<br />
  11. 11. Charitable Remainder Trusts<br />Charitable remainder annuity trust (CRAT)<br />Charitable remainder unitrust (CRUT)<br />Pays an amount to an individual or individuals for period of time and remainder to charity<br />Serving the Holland area since 1900<br />
  12. 12. Split-Interest Gifts (CRAT)<br />An annuity is paid to an individual or individuals for a term of years (20 at most) or life and remainder goes to charity<br />Diversifying of investments and predictable income stream<br />No transfer tax benefit<br />Serving the Holland area since 1900<br />
  13. 13. Split-Interest Gifts (CRUT)<br />A certain percentage of the initial trust assets is paid to an individual or individuals for a term of years (20 at most) or life and remainder goes to charity<br />Helpful way to protect against inflation<br />Payments will vary<br />Serving the Holland area since 1900<br />
  14. 14. Charitable Lead Trusts<br />Charitable lead annuity trust (CLAT)<br />Charitable lead unitrust (CLUT)<br />Benefit to charity for period of time and remainder to an individual or individuals for terms of years (20 at most) or life<br />Serving the Holland area since 1900<br />
  15. 15. Split-Interest Gifts (CLAT)<br />An annuity is paid to a charity and remainder goes to individuals<br />Beneficial when interest rates are low and already planning on making gifts<br />If investments don’t perform, there will not be a distribution to remainder individuals<br />Serving the Holland area since 1900<br />
  16. 16. Split-Interest Gifts (CLUT)<br />A certain percentage of the trust assets is paid to a charity for a term of years and remainder goes to individuals<br />Will always allow for a distribution to individuals<br />Less tax benefit<br />Serving the Holland area since 1900<br />
  17. 17. Gifts Tied to a Charity or the Community Foundation<br />Charitable annuity<br />Donor advised fund<br />Supporting organization<br />Serving the Holland area since 1900<br />
  18. 18. Supporting Organization<br />Establish a nonprofit organization and “supports” an existing charity<br />Have control over gifts and less complicated than private foundation<br />Not as much control as private foundation<br />Serving the Holland area since 1900<br />
  19. 19. Permanent Structure for Giving<br />Private Foundation <br />Donor forms a trust or a nonprofit corporation and makes gifts to the foundation<br />Foundation grants money to charities<br /> <br />Serving the Holland area since 1900<br />
  20. 20. Private Foundation<br />Allows for greater control/flexibility over gifts and involvement of children in philanthropy<br />Very expensive to setup/administer and complicated rules to comply with<br />Serving the Holland area since 1900<br />
  21. 21. Thank You<br />P. Haans Mulder, JD, MST, CFP®<br />Cunningham Dalman, P.C.<br />321 Settlers Road<br />Holland, MI 49423<br />(616) 392-1821<br />phmulder@holland-law.com<br />www.holland-law.com<br />Serving the Holland area since 1900<br />

×