Financial Advisor Series <ul><li>Charitable Trusts </li></ul><ul><li>Presented by </li></ul><ul><li>Brett Sanner </li></ul...
Estate Planning Overview <ul><li>Most Estate Plans   Just Don’t Work! </li></ul>
Estate Planning Overview <ul><li>Keys to an effective Estate Plan </li></ul><ul><li>Proper Asset  Ownership  (Title) </li>...
Estate Planning Overview <ul><li>Definition of Estate Planning </li></ul><ul><li>I want to  control  my property while I a...
Estate Planning Overview <ul><li>The Estate Planning Pyramid </li></ul><ul><li>Focuses on Client Goals </li></ul><ul><li>“...
Estate Planning Overview    Estate Planning Pyramid   “ No  one-size-fits-all solutions.” <ul><li>taxes and costs </li></u...
Estate Planning Overview Approach <ul><li>Traditional </li></ul><ul><li>Reactive </li></ul><ul><li>Truth  </li></ul><ul><l...
Estate Planning Overview Control <ul><li>Traditional </li></ul><ul><li>By Others </li></ul><ul><li>Truth </li></ul><ul><li...
Estate Planning Overview Client Education <ul><li>Traditional </li></ul><ul><li>Minimal, </li></ul><ul><li>Much After </li...
Estate Planning Overview Client Understanding / Comfort   <ul><li>Traditional </li></ul><ul><li>Minimal / Low </li></ul><u...
Estate Planning Overview Team Approach <ul><li>Traditional </li></ul><ul><li>Infrequent Use </li></ul><ul><li>Truth </li><...
Estate Planning Overview Funding <ul><li>Traditional </li></ul><ul><li>After Death  </li></ul><ul><li>  (With Increased </...
Estate Planning Overview Personal Instructions <ul><li>Traditional </li></ul><ul><li>Minimal to  </li></ul><ul><li>None </...
Estate Planning Overview Updating <ul><li>Traditional </li></ul><ul><li>Infrequent or  </li></ul><ul><li>Non-Existent </li...
Estate Planning Overview Fees <ul><li>Traditional </li></ul><ul><li>Little Known, </li></ul><ul><li>  Primarily after  </l...
Legal Counselling   For an Estate Plan that will Work: <ul><li>1. Work with a Counseling Oriented Attorney </li></ul><ul><...
Legal Counselling   Some common goals we discover: <ul><li>Take care of family (now & later) </li></ul><ul><li>Diversify a...
Legal Counselling   Clients’ choice for their wealth:  Pick and allocate to at least two. <ul><li>At death to my Family __...
Charitable Planning Basics  Charitable Deductions <ul><li>Amount you give to charity entitles you to an income tax deducti...
Charitable Planning Basics  Charitable Deductions <ul><li>Donate  appreciated  assets </li></ul><ul><li>Stock you bought f...
Charitable Planning Basics   Split Interest Gift Trusts <ul><li>Form a Trust - an agreement </li></ul><ul><li>One party ge...
Charitable Remainder Trusts <ul><li>Charitable Remainder Trusts  </li></ul><ul><ul><li>You keep the apples for life, and t...
Charitable Remainder Trust <ul><li>Donate an asset to the Trust </li></ul><ul><ul><li>highly appreciated asset works best ...
Charitable Remainder Trust John  &  Mary
Charitable Remainder Trust John  &  Mary Asset placed in Trust CRT Income Trust
Charitable Remainder Trust John  &  Mary CRT Income Trust Income for life
Charitable Remainder Trust John  &  Mary, Deceased CRT Income Trust 501(c)(3) Charity  Receives remainder
Charitable Remainder Trust John  &  Mary, Deceased CRT Income Trust The transaction  is a gift to the end Beneficiary, sub...
Charitable Remainder Trust <ul><li>  What good is a CRT? </li></ul><ul><li>Provide future benefit to charity of choice </l...
Charitable Remainder Trust   Bank Stock worth  $3,000,000 Basis     $100,000 <ul><li>Increase Income </li></ul><ul><li>Cur...
Charitable Remainder Trust   Bank Stock worth  $3,000,000 Basis     $100,000 <ul><li>Avoid Capital Gain Tax/Increase Incom...
Charitable Remainder Trust   Bank Stock worth  $3,000,000 <ul><li>Also avoid Estate Tax </li></ul><ul><li>$3M >> $2,420,00...
Charitable Remainder Trust  PLUS John  &  Mary Income  for life Asset placed in Trust Charitable  Remainder Trust
Charitable Remainder Trust  PLUS John  &  Mary Income  for life Asset placed in Trust Charitable  Remainder Trust From ext...
Charitable Remainder Trust  PLUS John  &  Mary Family Receives  $3,000,000 Charity Receives $3,000,000 No Death Taxes!! In...
CRT Variations: CRAT <ul><li>Charitable Remainder Annuity Trust </li></ul><ul><li>Income paid back to Trustmaker is a fixe...
CRT Variations: CRUT <ul><li>Charitable Remainder  Uni Trust </li></ul><ul><li>Income paid back to Trustmaker is a percent...
CRT Variations: NICRUT <ul><li>Net Income  Charitable Remainder UniTrust </li></ul><ul><li>Income paid back to Trustmaker ...
CRT Variations: NIMCRUT <ul><li>Net Income  Make-up  Charitable Remainder UniTrust </li></ul><ul><li>Actual income earned ...
CRT Variations: NIMCRUT John  &  Mary, Deceased CRT Income Trust More flexibility on distributions vs. pushing growth insi...
CRT Variations: FLIP-CRUT <ul><li>“ Triggered” Charitable Remainder UniTrust </li></ul><ul><li>Like a CRUT but the payout ...
Family benefit analysis Net Present Value: No CRT <ul><li>$400,000 asset to sell, with zero basis   NPV </li></ul><ul><li>...
Family benefit analysis   Net Present Value: With a CRT <ul><li>$400,000 asset to sell, with zero basis   NPV </li></ul><u...
CRT Income Taxation: WIFO <ul><li>Distributions taxed to the income beneficiary  </li></ul><ul><li>W orst  I n  F irst  O ...
Marketing Opportunities: <ul><li>Assets under management </li></ul><ul><ul><li>Sale of unmanaged assets (real estate, smal...
Another twist   Charitable  Lead  Trust <ul><li>ZERO-OUT  your estate taxes </li></ul><ul><li>At death, from Living Trust,...
Another twist   Charitable Lead Trust John  &  Mary Asset placed in Trust Charitable  Lead Trust
Another twist   Charitable Lead Trust John  &  Mary Income Charitable  Lead Trust
Another twist   Charitable Lead Trust John  &  Mary Charitable  Lead Trust Children Receive Remaining assets
Basic Estate Tax Planning John’s Death Mary’s Death IRS  Supermarket John’s RLT Mary’s  Living Trust Children Family Trust...
Basic Estate Tax Planning  plus a Testamentary CLT Children Family Trust IRS  Supermarket Mary’s RLT Marital Trust Mary’s ...
Social Capital How to use our Social Capital <ul><li>Government: 1/4 gets to end user </li></ul><ul><li>Private charity: 9...
The Free Bridge <ul><li>“ I live in Alexandria, Virginia.  Near the Supreme Court chambers is a toll bridge across the Pot...
The Free Bridge <ul><li>“ If, however, I drive the extra mile and drive outside the city of Washington to the free bridge,...
“ gains achieved unfairly” <ul><li>“ Over the past 12  years, trickle-down policies have benefited the wealthy at the expe...
Who has paid enough? <ul><li>“ So you’ve made  $20 million  in your lifetime.  After you paid  income taxes , your net wor...
Thanks for Attending Please Complete the Feedback Form
Financial Advisor Series <ul><li>Charitable Trusts </li></ul><ul><li>Presented by </li></ul><ul><li>[Your Name] </li></ul>...
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Charitable Remainder Trust Presentation

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Benefits of a Charitable Remainder Trust

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  • Charitable Remainder Trust Presentation

    1. 1. Financial Advisor Series <ul><li>Charitable Trusts </li></ul><ul><li>Presented by </li></ul><ul><li>Brett Sanner </li></ul><ul><li>Raymond James Financial </li></ul><ul><li>Suzanne M. Graves </li></ul><ul><li>Law Offices of Suzanne M. Graves, Inc. </li></ul>
    2. 2. Estate Planning Overview <ul><li>Most Estate Plans Just Don’t Work! </li></ul>
    3. 3. Estate Planning Overview <ul><li>Keys to an effective Estate Plan </li></ul><ul><li>Proper Asset Ownership (Title) </li></ul><ul><li>Control the Process </li></ul><ul><ul><li>Know what to do </li></ul></ul><ul><ul><li>Know how to do it </li></ul></ul><ul><ul><li>Know how to pay for it </li></ul></ul>
    4. 4. Estate Planning Overview <ul><li>Definition of Estate Planning </li></ul><ul><li>I want to control my property while I am alive and well, </li></ul><ul><li>Plan for the care of me and my loved ones if I become disabled ; </li></ul><ul><li>When I want, give What I have to Whom I want, and the Way I want, with fully disclosed and controlled costs to me and my family. </li></ul>
    5. 5. Estate Planning Overview <ul><li>The Estate Planning Pyramid </li></ul><ul><li>Focuses on Client Goals </li></ul><ul><li>“ Solutions” make planning easier </li></ul><ul><li>Exposes Traditional planning as “upside down” </li></ul>
    6. 6. Estate Planning Overview Estate Planning Pyramid “ No one-size-fits-all solutions.” <ul><li>taxes and costs </li></ul><ul><li>increasing assets </li></ul><ul><li>preserving your assets </li></ul><ul><li>information about family </li></ul><ul><li>Client (goals, fears, dreams) </li></ul>Peter Lynch
    7. 7. Estate Planning Overview Approach <ul><li>Traditional </li></ul><ul><li>Reactive </li></ul><ul><li>Truth </li></ul><ul><li>Proactive </li></ul>
    8. 8. Estate Planning Overview Control <ul><li>Traditional </li></ul><ul><li>By Others </li></ul><ul><li>Truth </li></ul><ul><li>Rests With </li></ul><ul><li>Client </li></ul>
    9. 9. Estate Planning Overview Client Education <ul><li>Traditional </li></ul><ul><li>Minimal, </li></ul><ul><li>Much After </li></ul><ul><li>Death </li></ul><ul><li>Truth </li></ul><ul><li>Increased and </li></ul><ul><li>as Soon as </li></ul><ul><li>Possible </li></ul>
    10. 10. Estate Planning Overview Client Understanding / Comfort <ul><li>Traditional </li></ul><ul><li>Minimal / Low </li></ul><ul><li>Truth </li></ul><ul><li>Increased </li></ul>
    11. 11. Estate Planning Overview Team Approach <ul><li>Traditional </li></ul><ul><li>Infrequent Use </li></ul><ul><li>Truth </li></ul><ul><li>Requirement </li></ul>
    12. 12. Estate Planning Overview Funding <ul><li>Traditional </li></ul><ul><li>After Death </li></ul><ul><li> (With Increased </li></ul><ul><li> Expense) </li></ul><ul><li>Truth </li></ul><ul><li>Current and </li></ul><ul><li>Continuous </li></ul>
    13. 13. Estate Planning Overview Personal Instructions <ul><li>Traditional </li></ul><ul><li>Minimal to </li></ul><ul><li>None </li></ul><ul><li>Truth </li></ul><ul><li>Substantial </li></ul><ul><li> (& Encouraged) </li></ul>
    14. 14. Estate Planning Overview Updating <ul><li>Traditional </li></ul><ul><li>Infrequent or </li></ul><ul><li>Non-Existent </li></ul><ul><li>Truth </li></ul><ul><li>Continuous </li></ul>
    15. 15. Estate Planning Overview Fees <ul><li>Traditional </li></ul><ul><li>Little Known, </li></ul><ul><li> Primarily after </li></ul><ul><li>Death </li></ul><ul><li>Truth </li></ul><ul><li>Fully Disclosed, </li></ul><ul><li>Higher Initially, </li></ul><ul><li>Lower Overall </li></ul>
    16. 16. Legal Counselling For an Estate Plan that will Work: <ul><li>1. Work with a Counseling Oriented Attorney </li></ul><ul><li>2. Establish and maintain Formal Updating program </li></ul><ul><li>3. Assure Controlled settlement costs after death </li></ul>
    17. 17. Legal Counselling Some common goals we discover: <ul><li>Take care of family (now & later) </li></ul><ul><li>Diversify assets/take profits without paying capital gain tax </li></ul><ul><li>Avoid estate taxes </li></ul><ul><li>Support some social/charitable interest </li></ul>
    18. 18. Legal Counselling Clients’ choice for their wealth: Pick and allocate to at least two. <ul><li>At death to my Family ____% </li></ul><ul><li>At death to my Country ____% </li></ul><ul><li>At death to my Charities ____% </li></ul><ul><li>Total will equal 100% </li></ul>
    19. 19. Charitable Planning Basics Charitable Deductions <ul><li>Amount you give to charity entitles you to an income tax deduction </li></ul><ul><li>Write off up to 50% of your AGI </li></ul><ul><li>Example: </li></ul><ul><ul><li>Made $80,000 this year </li></ul></ul><ul><ul><li>Contribute $20,000 to 501(c)(3) organization </li></ul></ul><ul><ul><li>Pay income tax on $60,000 </li></ul></ul>
    20. 20. Charitable Planning Basics Charitable Deductions <ul><li>Donate appreciated assets </li></ul><ul><li>Stock you bought for $5,000 but now is worth $20,000 </li></ul><ul><li>If you do anything else with that stock, it is only worth $17,000 ($3000 less) </li></ul><ul><li>Capital gain taxes of 20% of $15,000 </li></ul><ul><li>Contribute: tax deduction for $20,000 </li></ul>
    21. 21. Charitable Planning Basics Split Interest Gift Trusts <ul><li>Form a Trust - an agreement </li></ul><ul><li>One party gets the Income for a term - a defined period of time </li></ul><ul><li>The other party gets the assets later - the Remainder </li></ul><ul><li>Wealth is like an orchard you’ve built up over a lifetime. Taxes take the trees. When the trees are gone, no more apples! </li></ul>
    22. 22. Charitable Remainder Trusts <ul><li>Charitable Remainder Trusts </li></ul><ul><ul><li>You keep the apples for life, and the charity gets the trees when you die </li></ul></ul><ul><ul><li>Use some of the apples to replace the orchard for your kids </li></ul></ul>
    23. 23. Charitable Remainder Trust <ul><li>Donate an asset to the Trust </li></ul><ul><ul><li>highly appreciated asset works best </li></ul></ul><ul><li>Sell and reinvest proceeds (diversified for safety and at higher rate of return) </li></ul><ul><li>Keep income (some tax-free) for life </li></ul><ul><li>Use excess income to buy tax free insurance policy in “ILIT” </li></ul><ul><li>At death everything goes tax-free! </li></ul>
    24. 24. Charitable Remainder Trust John & Mary
    25. 25. Charitable Remainder Trust John & Mary Asset placed in Trust CRT Income Trust
    26. 26. Charitable Remainder Trust John & Mary CRT Income Trust Income for life
    27. 27. Charitable Remainder Trust John & Mary, Deceased CRT Income Trust 501(c)(3) Charity Receives remainder
    28. 28. Charitable Remainder Trust John & Mary, Deceased CRT Income Trust The transaction is a gift to the end Beneficiary, subject to the retained right to income for a number of years. 501(c)(3) Charity Receives remainder
    29. 29. Charitable Remainder Trust <ul><li> What good is a CRT? </li></ul><ul><li>Provide future benefit to charity of choice </li></ul><ul><li>Take profits: Liquidate appreciated asset without paying capital gain taxes </li></ul><ul><li>Diversify client’s investments </li></ul><ul><li>Current income tax deduction </li></ul><ul><li>Removes asset from taxable estate </li></ul>
    30. 30. Charitable Remainder Trust Bank Stock worth $3,000,000 Basis $100,000 <ul><li>Increase Income </li></ul><ul><li>Current income: </li></ul><ul><ul><li>dividend 2.5% $75,000 ---------------------------------------------------------------------------------------------------------------------------------------------------- </li></ul></ul><ul><ul><li>Transfer to CRT, sell stock, </li></ul></ul><ul><ul><li>reinvest, take 7% per year $210,000 </li></ul></ul><ul><li>Increase of $135,000 </li></ul><ul><li>Bonus! Up to $105,000 for 6 years is income tax free! </li></ul>
    31. 31. Charitable Remainder Trust Bank Stock worth $3,000,000 Basis $100,000 <ul><li>Avoid Capital Gain Tax/Increase Income </li></ul><ul><li>Sell as is, lose 20% of $2.9M gain </li></ul><ul><ul><li>lost $ 580,000 ; balance of $2,420,000 </li></ul></ul><ul><ul><li>invested at 7% return $169,400 ----------------------------------------------------------------------------------------------------------------------------------------------------- </li></ul></ul><ul><li>Using CRT, sell stock, no capital gain tax </li></ul><ul><ul><li>reinvest full $3M at 7% $210,000 </li></ul></ul><ul><li>Increase per year of $40,600 </li></ul>
    32. 32. Charitable Remainder Trust Bank Stock worth $3,000,000 <ul><li>Also avoid Estate Tax </li></ul><ul><li>$3M >> $2,420,000 after Cap Gain tax $580,000 </li></ul><ul><li>Death: estate taxes (if have other assets) $1,121,700 </li></ul><ul><li>To IRS from original $3M: $1,701,700 </li></ul><ul><li>To Heirs from original $3M: $1,298,300 ----------------------------------------------------------------------------------------------------------------------------------------------------- </li></ul><ul><li>Using CRT & investing some of the extra $40,600 into a guaranteed $3,000,000 Life Insurance Trust </li></ul><ul><li>To Charity at Death $3,000,000 </li></ul><ul><li>To Heirs at Death $3,000,000 </li></ul><ul><li>TO IRS: $0 </li></ul>
    33. 33. Charitable Remainder Trust PLUS John & Mary Income for life Asset placed in Trust Charitable Remainder Trust
    34. 34. Charitable Remainder Trust PLUS John & Mary Income for life Asset placed in Trust Charitable Remainder Trust From extra income, invest small Gifts into Trust Life Insurance Trust
    35. 35. Charitable Remainder Trust PLUS John & Mary Family Receives $3,000,000 Charity Receives $3,000,000 No Death Taxes!! Income for life Asset placed in Trust Charitable Remainder Trust From extra income, invest small Gifts into Trust Life Insurance Trust
    36. 36. CRT Variations: CRAT <ul><li>Charitable Remainder Annuity Trust </li></ul><ul><li>Income paid back to Trustmaker is a fixed dollar amount, much like a fixed annuity for life (or a set term) </li></ul><ul><li>Contribute $100,000, receive an annuity payment of $7,000 per year for life </li></ul>
    37. 37. CRT Variations: CRUT <ul><li>Charitable Remainder Uni Trust </li></ul><ul><li>Income paid back to Trustmaker is a percentage of the assets in the trust each year </li></ul><ul><li>Contribute $100,000, receive payment equal to 7% of the first-business-day-of-year value of the trust property </li></ul><ul><li>May be distributing income or principal </li></ul>
    38. 38. CRT Variations: NICRUT <ul><li>Net Income Charitable Remainder UniTrust </li></ul><ul><li>Income paid back to Trustmaker is the </li></ul><ul><ul><li>Actual income earned in the trust that year but not too exceed </li></ul></ul><ul><ul><li>a percentage of the assets in the trust. </li></ul></ul><ul><li>More like the CRUT, but pays less if investments don’t earn enough income </li></ul><ul><li>Theoretically never distributes principal </li></ul>
    39. 39. CRT Variations: NIMCRUT <ul><li>Net Income Make-up Charitable Remainder UniTrust </li></ul><ul><li>Actual income earned in the trust that year but not too exceed stated percentage </li></ul><ul><li>When actual income is less than stated percentage, the shortfall is accrued in a “make-up account” and may be distributed in later years when actual income exceeds percentage. </li></ul>
    40. 40. CRT Variations: NIMCRUT John & Mary, Deceased CRT Income Trust More flexibility on distributions vs. pushing growth inside the CRT John & Mary 501(c)(3) Charity Receives remainder
    41. 41. CRT Variations: FLIP-CRUT <ul><li>“ Triggered” Charitable Remainder UniTrust </li></ul><ul><li>Like a CRUT but the payout is tied to some future event, which “triggers” the start of the payments </li></ul><ul><li>Start making distributions when certain property is sold (until then, might be nothing available to distribute) </li></ul>
    42. 42. Family benefit analysis Net Present Value: No CRT <ul><li>$400,000 asset to sell, with zero basis NPV </li></ul><ul><li>20% Capital gain tax: lose $80,000 </li></ul><ul><li>Invest remaining $320,000 at 10% to produce $32,000/yr. income for life. Say 20 years. $272,434 </li></ul><ul><li>At death the $320,000 goes to children $47,566 </li></ul><ul><li>Net Present value of the income and remainder: $320,000 </li></ul><ul><li>If estate tax reduces the principal at death by 50%, then just $160,000 would go to kids. </li></ul><ul><li>Net present value reduced by $23,783, to a net of $296,217 </li></ul>
    43. 43. Family benefit analysis Net Present Value: With a CRT <ul><li>$400,000 asset to sell, with zero basis NPV </li></ul><ul><li>No Capital gain tax. Invest entire $400,000 at 10% to produce $40,000/yr. income for life. Say 20 years. $340,543 </li></ul><ul><li>Nothing goes to children at death, all to charity - 0 - </li></ul><ul><li>Initial income tax deduction is worth at least $13,200 </li></ul><ul><li>Net Present value of the income and remainder: $353,743 </li></ul><ul><li>With no estate tax, family is $ 33,743 better off, with estate tax, they are $ 57,526 better off. How much better off will they be investing a little income in an ILIT!? </li></ul>
    44. 44. CRT Income Taxation: WIFO <ul><li>Distributions taxed to the income beneficiary </li></ul><ul><li>W orst I n F irst O ut </li></ul><ul><li>Four tiers: The most “tax expensive” income comes out first </li></ul><ul><ul><li>1. Ordinary Income & Short Term Cap Gains </li></ul></ul><ul><ul><li>2. Long Term Capital Gain </li></ul></ul><ul><ul><li>3. Other (ie. muni bonds interest) </li></ul></ul><ul><ul><li>4. Return of Principal </li></ul></ul>
    45. 45. Marketing Opportunities: <ul><li>Assets under management </li></ul><ul><ul><li>Sale of unmanaged assets (real estate, small business) without capital gain tax, move assets to diverse portfolio </li></ul></ul><ul><ul><li>Sale of low-income stock without capital gain tax, reinvest in modern portfolio </li></ul></ul><ul><ul><li>NIMCRUT: Variable annuity can provide the spigot </li></ul></ul><ul><li>Life Insurance </li></ul><ul><ul><li>Replacement value for what goes to charity at death </li></ul></ul>
    46. 46. Another twist Charitable Lead Trust <ul><li>ZERO-OUT your estate taxes </li></ul><ul><li>At death, from Living Trust, place part of estate in the CLT </li></ul><ul><li>Income for a few years goes to Charity </li></ul><ul><li>After those years, property to kids </li></ul><ul><li>Let charity “pick the apples” for a few years, then the kids get the trees </li></ul>
    47. 47. Another twist Charitable Lead Trust John & Mary Asset placed in Trust Charitable Lead Trust
    48. 48. Another twist Charitable Lead Trust John & Mary Income Charitable Lead Trust
    49. 49. Another twist Charitable Lead Trust John & Mary Charitable Lead Trust Children Receive Remaining assets
    50. 50. Basic Estate Tax Planning John’s Death Mary’s Death IRS Supermarket John’s RLT Mary’s Living Trust Children Family Trust plus Mary’s coupon, tax free; Estate Taxes on all over that Family Trust (coupon) Mary’s Living Trust Marital Trust
    51. 51. Basic Estate Tax Planning plus a Testamentary CLT Children Family Trust IRS Supermarket Mary’s RLT Marital Trust Mary’s RLT John’s RLT Charitable Lead Trust
    52. 52. Social Capital How to use our Social Capital <ul><li>Government: 1/4 gets to end user </li></ul><ul><li>Private charity: 90% + to end user </li></ul><ul><li>Which makes more sense? </li></ul>
    53. 53. The Free Bridge <ul><li>“ I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge. </li></ul><ul><li>“ This bridge was placed outside the downtown Washington, DC area to serve a useful social service, getting drivers to drive the extra mile and help alleviate congestion during the rush hour. </li></ul><ul><li>“ If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. ... </li></ul>
    54. 54. The Free Bridge <ul><li>“ If, however, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and am performing a useful social service by doing so. </li></ul><ul><li>“ For my tax evasion, I should be punished. For my tax avoidance, I should be commended. </li></ul><ul><li>“ The tragedy of life today is that so few people know that the free bridge even exists.” </li></ul><ul><li>Justice Louis Brandeis </li></ul>
    55. 55. “ gains achieved unfairly” <ul><li>“ Over the past 12 years, trickle-down policies have benefited the wealthy at the expense of the middle class and working poor. While a privileged few have prospered, millions of Americans who work hard and play by the rules have been left behind. </li></ul><ul><li>Since these gains were achieved unfairly , it is time for the rich to bear the greatest burden and to do right by the people who work hard and play by the rules.” </li></ul><ul><li>Former President Bill Clinton - February 1993 </li></ul>
    56. 56. Who has paid enough? <ul><li>“ So you’ve made $20 million in your lifetime. After you paid income taxes , your net worth is $13.2 million . </li></ul><ul><li>“ After your children pay estate taxes upon your death, it will be worth $6.33 million . </li></ul><ul><li>“ After your grandchildren pay estate taxes on the death of your children, it will be worth $3,401,400 . </li></ul><ul><li>“ Your estate will be worth only 17% of its original value after only two generations of taxation.” </li></ul><ul><li>Barry Kaye, Save a Fortune on Your Estate Taxes </li></ul>
    57. 57. Thanks for Attending Please Complete the Feedback Form
    58. 58. Financial Advisor Series <ul><li>Charitable Trusts </li></ul><ul><li>Presented by </li></ul><ul><li>[Your Name] </li></ul>©2002 National Network of Estate Planning attorneys. Unauthorized reproduction in any form is prohibited.

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