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Nae 2013-01-30-slides final
- 1. Update on Planning or, What Do I Do Now? Presented by !
- 2. What is Estate Planning? Tax, Probate! Growth! Assets! Family! Me! 1! 2!
- 3. What is Estate Planning? Me! Family! Assets! Growth! Tax, Probate! 2! 3!
- 4. Where We Are Now • American Taxpayer Relief Act of 2012 – Rules are now “permanent” (that is, un5l Congress changes its mind) 3!
- 5. Where We Are Now (Con’t) • Income Tax – “Bush Era” individual income tax rates have been preserved – Unless your AGI exceeds $450,000 (married) or $400,000 (single) • AlternaHve Minimum Tax – Exemp5on for AGI of $78,750 (married) or $50,600 (single) – Finally indexed for infla5on 4!
- 6. Where We Are Now (Con’t) • Capital Gains Taxes – The lower “Bush Era” capital gains tax rates have been preserved – Unless your AGI exceeds $450,000 (married) or $400,000 (single) • Medicare surtax – Starts this year – 3.8% on net investment income if AGI exceeds $250,000 (married) or $200,000 (single) 5!
- 7. Where We Are Now (Con’t) • Transfer Tax Rules – “Permanent” (un5l Congress changes things) – $5,250,000 exclusion/person – $5,250,000 exclusion for life5me giWs/person – $5,250,000 exclusion for genera5on-‐skipping giWs/ person – $14,000 annual exclusion/recipient All indexed for infla.on 6!
- 8. Where We Are Now (Con’t) • Transfer Tax Rules – “Portability” • Spouses can protect up to $10,500,000 from transfer taxes • More if you die, remarry in the right order 7!
- 9. How Much Have Things Really Changed? • In some ways, not so much – You s5ll plan to • Protect yourself • Protect your family • Protect your legacy • Two big differences – Do you s5ll need tradi5onal “A-‐B” trust planning? – A charitable giW is worth more now 8!
- 10. So What Does This Mean? (Con’t) • Do you sHll want “A-‐B” trust planning? – Complexity – Asset protec5on – Remarriage protec5on – Preserving portability 9!
- 11. So What Does This Mean? (Con’t) • A charitable giU is worth more now – Offset poten5ally higher income taxes – Offset poten5ally higher capital gains taxes – Offset poten5ally higher transfer taxes 10!
- 12. Yes, But I Want More Than A Tax DeducHon • I want to dispose of difficult assets – Re5rement accounts – No longer needed life insurance – Highly appreciated property • Tools to help – Charitable giWs of re5rement accounts – Charitable giWs of highly appreciated property 11!
- 13. Yes, But I Want More Than A Tax DeducHon (Con’t) • I want a steady stream of income • Tools to help – Charitable giW annuity – Charitable remainder trust 12!
- 14. Yes, But I Want More Than A Tax DeducHon (Con’t) • I want to control my legacy now and aUer I die • Tools to help – Donor-‐advised fund – Suppor5ng organiza5on – Private founda5on 13!
- 15. Yes, But I Want More Than A Tax DeducHon (Con’t) • I like charitable giving well enough, but I want it all to go to my family • Tools to help – Charitable lead trust planning – Life insurance • I want to do good – All charitable giving will help with this – You can make giWs with or without strings aeached – Remember NAE! 14!
- 16. The Moral of the Story • One of the cool things about estate planning is we usually can accomplish all your goals 15!
- 17. QuesHons 16!
- 18. What’s The Next Step? Jan Copley (626) 696-‐3145 jan@pasadenalawgroup.com NAE Clare Flanagan Director of Planned Giving (202) 334-‐1536 cflanagan@nas.edu 17!
- 19. Thank You 70 South Lake Avenue | Suite 1000 Pasadena, CA 91101 P (626) 696-‐3145 www.PasadenaLawGroup.com 18!