Producer Guide For producer use only. Not for distribution to the public.
|
|
- Claire Patience Newman
- 8 years ago
- Views:
Transcription
1 Dy n a s t y Tru s t Producer Guide For producer use only. Not for distribution to the public.
2
3
4
5 Dynasty Trusts The following overview provides general information on the design and operation of Dynasty Trusts and incentive provisions, current as of September Please note that all documents must be drafted by legal counsel. Additionally, qualified advisors who are knowledgeable in the area must provide any needed professional services such as accounting or tax advice. Overview of Dynasty Trusts Many high net worth individuals wish to leave an ongoing legacy to their grandchildren without dramatically reducing their children s inheritance. This may be accomplished by effectively leveraging the generation-skipping transfer tax (GSTT) exemption. One of the most effective ways to do this is to use a Dynasty Trust to pass as many assets as possible to the grandchildren. Benefits of Dynasty Trusts A Dynasty Trust, also known as a legacy or generation-skipping trust, can be a tax-effective way to transfer significant assets to beneficiaries. While it is an irrevocable life insurance trust (ILIT), a Dynasty Trust goes a step beyond a standard ILIT in that it can last over several generations. Rule Against Perpetuities A Dynasty Trust will continue for as long as the rule against perpetuities will allow. In jurisdictions that have adopted the Uniform Statutory Rule Against Perpetuities, a Dynasty Trust can endure for the common law perpetuities period or 90 years. A Dynasty Trust goes a step beyond a standard ILIT in that it can last over several generations. In those states that have abolished or greatly extended the rule against perpetuities, 1 a Dynasty Trust can last beyond the limit imposed by the common law perpetuities period. Of these states, Alaska, Delaware, Florida, South Dakota, and Wyoming are considered the most desirable locations for these types of trusts because of their favorable asset protection and income tax laws. 1 Currently these states include Alaska, Arizona, Colorado, Delaware, Florida, Idaho, Illinois, Maine, Maryland, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, Ohio, Rhode Island, South Dakota, Utah, Virginia, Washington, Washington, D.C., Wisconsin, and Wyoming. t r a n s a m e r i c a 1
6 Life insurance as a trust asset can be an effective way to leverage trust contributions because they can be used to purchase a sizable life insurance policy. Estate Tax Considerations When the trust is properly drafted by legal counsel, the trust s assets including life insurance owned by the trust may remain free from federal gift and estate taxes for the life of the Dynasty Trust. Under current federal law, no estate tax is due at death if the taxable estate is less than $2 million in 2007 or 2008, increasing to a maximum of $3.5 million in In 2010 no federal estate taxes will be assessed; however, in 2011 the estate tax exemption will revert to the 2001 level of $1 million. Understanding Generation Skipping Transfer Taxes In 1986, Congress created the GSTT. Under current federal tax law, a GSTT is imposed on any transfer of property by gift, or at death, to any person who is two or more generations below that of the transferor or 37 1 /2 years younger than the transferor. For example, in the case of family members, this includes the transferor s grandchildren as well as great-nieces and great-nephews. The GSTT is applied to the Dynasty Trust by assuming that the trust beneficiaries own the assets in the Dynasty Trust. A flat tax equal to the highest estate tax bracket is imposed on every generation-skipping transfer. There are a number of exceptions to the GSTT: n Tuition and medical payments when made directly to the provider n $12,000 annual exclusion in 2007 for present interest gifts 2 n $2 million lifetime exemption per transferor in 2007 and The annual gift tax exclusion amount is indexed for inflation annually in $1,000 increments. 2 Dynasty Trust
7 Producer Guide Gifts of the $12,000 annual exclusion amount may be used to pay the premium on a life insurance policy owned by a Dynasty Trust. Alternatively, the $2 million GSTT exemption may be utilized in conjunction with the $1 million lifetime gift exemption. In either case, life insurance as a trust asset can be an effective way to leverage trust contributions because they can be used to purchase a sizable life insurance policy. However, since the current lifetime gift tax exemption is limited to $1 million per transferor and is not scheduled to increase, transfers in excess of $1 million to a Dynasty Trust will be subject to gift tax. Therefore, it may be desirable to limit the use of the GSTT exemption to the $1 million maximum lifetime gift exemption when contributing funds to the Dynasty Trust. Future Tax Advantages The GSTT, like the estate tax, is scheduled to be repealed for This means that, without legislative action, it will return in its pre-egtrra Scheduled Tax Changes Lifetime Estate Tax Gift Tax GSTT Year Exemption Exemption Exemption 2008 $2 million $1 million $2 million 2009 $3.5 million $1 million $3.5 million 2010 N/A $1 million N/A repealed repealed 2011 $1 million $1 million $1,120,000 * * Plus increases for indexing for inflation after form on January 1, If the GSTT exemption is properly allocated to the contributions to the Dynasty Trust, it is likely that the trust assets will never be subject to the GSTT. Note, however, that income tax may be due on trust distributions. If the GSTT exemption is properly allocated to the contributions to the Dynasty Trust, it is likely that the trust assets will never be subject to the GSTT. 3 EGTRRA is the Economic Growth and Tax Relief Reconciliation Act of t r a n s a m e r i c a 3
8 Establishing the Dynasty Trust A Dynasty Trust should be drafted by an experienced estate planning attorney after a thorough analysis of the client s objectives. The trust can be created during a grantor s lifetime or upon his or her death. Life insurance death benefit proceeds magnify trust assets through leverage of premium amounts. In the following example, the trustee pays the premiums on a life insurance policy with annual split gifts from the two grantors of $24,000 per grandchild. In order for the gifts to qualify for the annual gift and GSTT exemption, it is important for the beneficiaries to be given withdrawal rights, commonly referred to as Crummey powers. These powers to withdraw gifts placed in the trust are only exercisable during a specific period of time for example, for 30 days after receiving the Crummey notice. The $2 million gift can be used as the source of income and/or principal payable from the Dynasty Trust to the grandchildren during the grandparents lifetimes, or to supplement the annual gifts to pay the life insurance premiums. Ownership/Beneficiary Arrangements In establishing a Dynasty Trust funded with life insurance, there are a number of ownership and beneficiary issues to consider. n Estate Exclusion If the insured had no incidents of ownership in the life insurance policy at any time within three years prior to his or her death, the policy proceeds will not be included in the insured s taxable estate. To assure that the life insurance policy is excluded from the grantor s estate, the original policy applicant should be a third party, such as the trustee of the Dynasty Trust. The grantor would then gift the premium to the thirdparty owner. 4 Dynasty Trust
9 Producer Guide Dynasty Trust Grandparents Grantors Create trust with gift of $2 million ($1 million each) using lifetime gift tax exemption and allocating a portion of GSTT exemption. Annual gifts of $24,000 per beneficiary (can be split gifts if separate property). Children & Grandchildren Beneficiaries Trust may make distribution of income and/or principal. Such distribution may be based upon incentive provisions. Dynasty Trust Trust purchases survivorship life insurance policy on lives of grandparents. Death benefit proceeds magnify trust assets through leverage of premium amounts. Life Insurance Policy n Gifting to the Dynasty Trust By using the current annual gift exclusion of $12,000 per beneficiary, grantors may provide the funds needed to purchase a life insurance policy. This exclusion allows each grandparent to make a $12,000 gift to any one donee, which means the grandparents can make a joint gift of up to $24,000 a year to any one individual. For example, in an instance where married grandparents have five grandchildren, they could jointly gift a total of $120,000 per year. Joint gifts need not come from both spouses property. The entire $24,000 could be made from one spouse s separate property, provided the other spouse consents to split the gift. Grandparents can make a joint gift of up to $24,000 a year to each individual. t r a n s a m e r i c a 5
10 Example: The Buck Family Bill and Barbara Buck, both 65, have one daughter Susan. Susan is financially comfortable in her own right. They also have three teenage grandchildren: Tom, Eileen, and James. The Bucks have a substantial estate and want to pass their wealth on to their descendants without paying a federal transfer tax. There are a number of incentive provisions that can be added to the Dynasty Trust to provide a blueprint of the grantor s own values. After consulting with their financial advisor, a life insurance professional, and an attorney experienced in estate planning, Bill and Barbara decide to create a Dynasty Trust. The Bucks transfer $2 million (each using $1 million of their lifetime GSTT and gift tax exemptions) to the trust that will pay income to Susan s children for their lives, and on to successive generations until the expiration of the perpetuities period. The trust assets, as well as their appreciation and accumulated income, will not be subject to federal gift and estate taxes for the entire term of the Bucks Dynasty Trust. In addition to the $2 million gift to the trust, the Bucks gift an additional $72,000 to the trust using their annual gift and GSTT exclusion to fund the purchase of a $6 million survivorship life insurance policy that will pay a death benefit at the death of the surviving spouse. Because Bill and Barbara think Susan s children are a bit wild and undisciplined, they also include incentive provisions in the trust to ensure that the grandchildren meet certain behavioral and lifestyle standards before they are allowed access to the trust s substantial assets. 6 Dynasty Trust
11 Producer Guide Adding Incentives to the Trust Many people who have worked hard to earn and build their wealth are reluctant to leave it to beneficiaries who may be carefree in their spending or who do not share the same values as the donors. There are a number of incentive provisions that can be added to the Dynasty Trust to provide a blueprint of the grantor s own values. These incentives will ensure that beneficiaries meet certain goals before they receive funds from the trust. Let s look at how incentive provisions can help improve the lives of the Buck grandchildren. Tom the eldest grandchild is ambivalent about attending college. Bill and Barbara, however, have strong feelings about a college education and have included an incentive in the trust to address this. On the day that Tom graduates from college, the trust will pay him $50,000. This gift is not specific to Tom. Any grandchild will be eligible to collect a $50,000 gift upon graduation. Likewise, James their youngest grandson is working to purchase his first car but would rather play basketball. To give him an incentive and to help him reach his goal more quickly, Bill and Barbara decide to incorporate trust language that will match his earnings by 50%. Of the three grandchildren, their granddaughter Eileen has an exemplary academic record and appears to be driven to succeed in her chosen career. While Bill and Barbara are proud of her success, they feel family values are important and would like to see her get married. As soon as Eileen gets married, she receives a $100,000 gift from the trust. A Dynasty Trust can help clients leverage their GSTT exemption. Note that some provisions might not be legally enforceable. For example, it s unlikely that an individual would be able to disinherit a beneficiary if the provision were such that he or she never marries. But a provision may be added to the Dynasty Trust limiting annual distributions to a certain amount such as $5,000 if the beneficiary marries a specific person. Achieving Important Goals A Dynasty Trust can help clients leverage their GSTT exemption while they are alive, and create a long-lasting legacy for future generations by sheltering not only the value of the assets transferred, but also any appreciation of those assets. For more information about this and other advanced marketing strategies, be sure to visit our Web site at or speak to our Advanced Marketing consulting team by calling ADV-MRKT ( ). t r a n s a m e r i c a 7
12 This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company (collectively Transamerica ), and their representatives do not give tax or legal advice. This material and concepts presented here are provided for informational purposes only and should not be construed as tax or legal advice. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of September Life insurance products are issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499, or Transamerica Financial Life Insurance Company, Purchase, NY All products may not be available in all jurisdictions. Transamerica Financial Life Insurance Company is authorized to conduct business in New York. Transamerica Life Insurance Company is authorized to conduct business in all other states. OLA 1376 T 1008 Dynasty Trust Producer Brochure For producer use only. Not for distribution to the public.
IDEAS February 2012. Make Big Gifts to a Dynasty ILIT
IDEAS February 2012 Make Big Gifts to a Dynasty ILIT Summary Make big gifts to a dynasty trust and the assets will be out of the transfer tax system forever. Use life insurance for an even more effective
More informationIrrevocable Life Insurance Trusts
Irrevocable Life Insurance Trusts Producer Guide 1 Irrevocable Life Insurance Trusts For producer use only. Not for distribution to the public. An In-Depth Look at the ILIT An irrevocable life insurance
More informationCLIENT GUIDE. Advanced Markets. Estate Planning Client Guide
CLIENT GUIDE Advanced Markets Estate Planning Client Guide TABLE OF CONTENTS Why Create an Estate Plan?........................ 1 Basic Estate Planning Tools......................... 2 Funding an Irrevocable
More informationMAXIMIZATION ANNUITY STRATEGY. An estate planning technique for individuals who own deferred annuities with sizable growth.
ANNUITY MAXIMIZATION STRATEGY An estate planning technique for individuals who own deferred annuities with sizable growth. Transamerica Occidental Life Insurance Company Preserving Hard-Earned Assets As
More informationAnnuity Maximization Strategy
Annuity Maximization Strategy Preserving Hard-Earned Annuity Assets t r a n s a m e r i c a 1 Alternatives to help protect financial assets, increase current income stream, or decrease income tax liabilities
More informationMaximizing Wealth Transfer using Innovative Trust Designs
Maximizing Wealth Transfer using Innovative Trust Designs For For Producer or or Broker/Dealer Use Use Only. Only. Not Not for for Public Distribution. Why Life Insurance? Provides for: Personal family
More informationFlorida (360 years); Nevada (365 years); Utah (1,000 years); Washington (150 years); and Wyoming (1,000 years).
DYNASTY TRUSTS Dynasty Trusts May Be Even More Powerful if Transfer Tax Laws Change The tax and creditor protection advantages of dynasty trusts will make these trusts more attractive as family wealth
More informationAn n u i t y. Preserving Hard-Earned Annuity Assets. t r a n s a m e r i c a 1
An n u i t y Maximization Strategy Preserving Hard-Earned Annuity Assets t r a n s a m e r i c a 1 Alternatives to help protect financial assets, increase current income stream, or decrease income tax
More informationState Estate Taxes BECAUSE YOU ASKED ADVANCED MARKETS
ADVANCED MARKETS State Estate Taxes In 2001, President George W. Bush signed the Economic Growth and Tax Reconciliation Act (EGTRRA) into law. This legislation began a phaseout of the federal estate tax,
More informationHow does an ILIT work? STOP! Proceed With Care: Gifts to Life Insurance Trusts in 2010
STOP! Proceed With Care: Gifts to Life Insurance Trusts in 2010 Kristi Mathisen, JD and CPA The first day of 2010 brought repeal of both the estate and generation-skipping transfer (GST) taxes. It was
More informationEstate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions
Estate planning strategies using life insurance in a trust Options for handling distributions, rollovers and conversions Life s better when we re connected Table of contents Find your questions review
More informationTaking Advantage of the New Gift and Estate Tax Law
product resource Taking Advantage of the New Gift and Estate Tax Law summary tra 2010 in brief Congressional debate about whether to extend tax cuts put into place during the Bush administration came to
More informationBy pa s s Tru s t. Program Highlights & Fact Finder
By pa s s Tru s t Program Highlights & Fact Finder Trusts have always played an important role in estate planning by allowing you to direct how your assets will be distributed after death What Is a Bypass
More informationEstate Tax Overview. Emphasis on Generation Skipping Transfers
Estate Tax Overview Emphasis on Generation Skipping Transfers 1 A Brief History - 1916 The Revenue Act of 1916 (39 Stat. 756) created a tax on the transfer of wealth from an estate to its beneficiaries,
More informationIrrevocable Life Insurance Trust
Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Irrevocable Life Insurance Trust Page 1 of 9, see disclaimer on final page Irrevocable
More informationSTOP! PROCEED WITH CARE: Gifts to Life Insurance Trusts in 2010
KRISTI MATHISEN, JD AND CPA The first day of 2010 brought repeal of both the estate and generation-skipping transfer (GST) taxes. It was an occurrence that some celebrated, some bemoaned, and most expected
More informationEstate, Gift, And GST Taxes: What Actually Happened
Estate, Gift, And GST Taxes: What Actually Happened Kenneth A. Goldstein The increased gift tax exemption and other provisions contained in the 2011 Act provide tremendous opportunities to save federal
More informationTax Relief, Unemployment Insurance Re- Authorization and Job Creation Act of 2010 Generation Skipping Transfer-Tax Issues Estate and Gift Tax Planning
Tax Relief, Unemployment Insurance Re- Authorization and Job Creation Act of 2010 Generation Skipping Transfer-Tax Issues Estate and Gift Tax Planning Robert A. DeVellis, Esq. Blair & Potts, PC 281 Tresser
More informationGeneration Skipping Transfer Tax
Generation Skipping Transfer Tax Producer Guide For agent use only. Not for public distribution. Generation Skipping Transfer Tax Summary The generation skipping transfer (GST) tax is a complex tax. This
More informationCHAPTER 13 Generation Skipping Transfers
CHAPTER 13 Generation Skipping Transfers DISCUSSION QUESTIONS 1. Define skip person. A natural person two or more generations younger than the transferor is a skip person. A trust is a skip person if all
More informationRising tuition for college education is a daunting
By Sharon L. Klein Paying for the (Grand) Kids College Know all the options and combinations thereof Rising tuition for college education is a daunting reality for many parents and grandparents. Even the
More informationTrusts & Estates. Many Estate Planning Opportunities May End in 2012 The Time to Act is Now
ALBANY AMSTERDAM ATLANTA AUSTIN BOSTON CHICAGO DALLAS DELAWARE DENVER FORT LAUDERDALE HOUSTON LAS VEGAS LONDON* LOS ANGELES MEXICO CITY+ MIAMI NEW JERSEY NEW YORK ORANGE COUNTY ORLANDO PALM BEACH COUNTY
More informationHERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015
HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax
More informationThe Role of Life Insurance
The Stretch-Out IRA Strategy The Role of Life Insurance Combining life insurance with an IRA Stretch-Out is an estate planning strategy that can help build and transfer wealth IRAs are the largest and
More informationThe Effective Use of Life Insurance in Wealth Transfer Planning
INDIVIDUAL LIFE INSURANCE A Consumer Resource The Effective Use of Life Insurance in Wealth Transfer Planning A Guide for Professionals and Consumers Table of Contents INTRODUCTION What is Wealth Transfer
More informationThe Possibilities of Estate Planning
The Possibilities of Estate Planning Richard D. Landsberg, JD, LLM, CLU, ChFC, RFC, APM, AIF Direcr Advanced Consulting Group Nationwide Financial Services Some things you need know This presentation was
More informationPlanning your estate
Planning your estate A general guide to estate planning Policies issued by: American General Life Insurance Company The United States Life Insurance Company in the City of New York What is estate planning?
More informationIN THIS ISSUE: March, 2011 j Planning with the $5 Million Gift Tax Exemption
IN THIS ISSUE: Federal Gift, Estate and GST Exemptions and Tax Rates New York State Gift & Estate Tax March, 2011 j Planning with the $5 Million Gift Tax Exemption By: Louis W. Pierro, Esq., Philip A.
More informationAdvisory. Will and estate planning considerations for Canadians with U.S. connections
Advisory Will and estate planning considerations for Canadians with U.S. connections Canadian citizens and residents may be exposed to U.S. estate, gift, and generation-skipping transfer tax (together,
More information230 S. Bemiston; Suite 900 Clayton, MO 63105 (314)727-5522 FAX (314)727-5568 www.mrctbenefitsplus.com www.mrctquote.com
Life & Health Insurance Advisor MRCT Benefits Plus is a comprehensive employee benefits, wellness and Human Resources consulting firm offering a variety of financial services to businesses and individuals
More informationHow To Save An Annuity From Being Lost At The Hands Of The Taxman
Annuity Rescue Strategy An estate planning technique for individuals who own deferred annuities with sizable growth. Transamerica Occidental Life Insurance Company Despite the advantage of tax-deferred
More informationEstate Planning Basics. An Overview of the Estate Planning Process
Estate Planning Basics An Overview of the Estate Planning Process What Is an Estate Plan? An estate plan is a map This map reflects the way you want your personal and financial affairs to be handled in
More informationProgram Highlights & Fact Finder
Executive Bonus Plan Program Highlights & Fact Finder A Rewarding Way to Retain Key Executives Executive Bonus Plans can be an effective way to reward selected employees or owners while providing tax deductions
More informationThe New Era of Wealth Transfer Planning #1. American Taxpayer Relief Act Boosts Life Insurance. For agent use only. Not for public distribution.
The New Era of Wealth Transfer Planning #1 American Taxpayer Relief Act Boosts Life Insurance For agent use only. Not for public distribution. In January 2013 Congress stepped back from the fiscal cliff
More informationWealthiest Families Know: 2013 & Beyond
What the Wealthiest Families Know: 2013 & Beyond Determine How Estate Planning Strategies and Life Insurance May Help You Turn Your Goals into a Wealth Legacy Whether you acquired it or inherited it, wealth
More informationHEIR UN-APPARENT: ESTATE PLANNING FOR U.S. BENEFICIARIES
HEIR UN-APPARENT: ESTATE PLANNING FOR U.S. BENEFICIARIES Jamie Golombek Managing Director, Tax & Estate Planning CIBC Private Wealth Management Estate planning involves consideration of who should benefit
More informationBypass Trust (also called B Trust or Credit Shelter Trust)
Davis & Graves CPA LLP Jerry Davis, CPA/PFS 700 N Main Gresham, OR 97009 503-665-0173 jerryd@davisgraves.com www.jjdcpa.com Bypass Trust (also called B Trust or Credit Shelter Trust) Page 1 of 9, see disclaimer
More informationGIFTS: THE KEY TO ESTATE TAX SAVINGS
GIFTS: THE KEY TO ESTATE TAX SAVINGS THE LAW FIRM OF ELLEN M. WINKLER 58 Atlantic Avenue Marblehead, MA 01945 Tel. 781-631-6404 Fax 781-631-7338 www.emwinklerlaw.com Estate taxes can take a significant
More informationEx e c u t i ve Bo n u s Pl a n
Ex e c u t i ve Bo n u s Pl a n Program Highlights & Fact Finder A Rewarding Way to Retain Key Executives In today s highly competitive business landscape, it is increasingly difficult to attract and retain
More informationEstate Planning. Maximize the legacy you leave to loved ones
Estate Planning Maximize the legacy you leave to loved ones An estate plan is a versatile tool from which anyone can benefit. It is the way you communicate your wishes to the loved ones you leave behind
More informationIRREVOCABLE LIFE INSURANCE TRUST CAUTION:
CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended
More informationSales Strategy Sale to a Grantor Trust (SAGT)
Estate planners have been using the Irrevocable Life Insurance Trust (ILIT) for many years, to increase wealth and liquidity outside the taxable estate. 1 However, transfers to ILITs One effective technique
More informationIN THIS ISSUE: June, 2011 j Using a Limited Liability Company (LLC) to Transfer a Family Business
IN THIS ISSUE: Case Study Facts Consequences of No Planning Planning Objectives Phase 1: Reorganize & Recapitalize Phase 2: Create Dynasty Trusts Phase 3: Tom's Trust Installment Note Why Reorganize to
More informationMaking life work for estate planning
Life insurance opportunities Making life work for estate planning Financial professional s guide m A Securian Company The Tax Relief Act of 2010 significantly changed the federal transfer tax system, including
More informationSpousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning
SALES STRATEGY Guiding you through life. ESTATE PLANNING Spousal Access Trusts Access To Cash Value Potential Through Flexible Trust Planning The Concerns Many clients who are concerned about maximizing
More informationYPASS TRUST. Program Highlights & Fact Finder. Preserving Assets for Your Loved Ones
B YPASS TRUST Program Highlights & Fact Finder May 2005 Preserving Assets for Your Loved Ones BYPASS TRUST Trusts have always played an important role in estate planning by allowing the trust creator to
More informationNon-probate Asset Transfer. How to Distribute Assets Not Managed by a Will or Trust
Non-probate Asset Transfer How to Distribute Assets Not Managed by a Will or Trust Creating a Will or Living Trust is a significant part of a well thought out estate plan. Even the most exacting estate
More informationThe Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
Advisory Estates, Trusts & Tax Planning Tax March 3, 2011 New Estate and Gift Tax Laws for 2011-2012 and Transfer Tax Provisions of the President's Proposed Budget for 2012 by Jennifer Jordan McCall, Ellen
More informationEstate Tax Concepts. for Edward and Tina Collins
Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com
More informationThe Basics of Estate Planning
The Basics of Estate Planning Introduction The process of estate planning can be a daunting prospect. Often individuals will avoid the process altogether. Obviously, this is not the best approach since
More informationWealth Transfer Planning Considerations for 2011 and 2012
THE CENTER FOR WEALTH PLANNING Wealth Transfer Planning Considerations for 2011 and 2012 March 2011 The Center for Wealth Planning is part of Credit Suisse s Private Banking USA and does not provide tax
More informationLIFE INSURANCE. Spousal Lifetime Access Trust. Transferring wealth and retaining spousal access
LIFE INSURANCE Spousal Lifetime Access Trust Transferring wealth and retaining spousal access Life. your way SM Strive to live your dreams. Discover the flexibility of life insurance protect, accumulate
More informationLeveraging wealth transfer using private financing
Private Financing Strategy Leveraging wealth transfer using private financing Not a bank or credit union deposit or obligation Not insured by any federal government agency Not FDIC or NCUA/NCUSIF insured
More informationLife Insurance and Estate Planning for Retirement Plans
Reynolds Financial Group LLC A Registered Investment Advisory Firm 216 Chaucer Drive Irwin, PA 15642 724-863-5005 Phone 724-863-8031 Fax wendyl@reynoldsfinancialgroup.net Life Insurance and Estate Planning
More informationBASICS * Irrevocable Life Insurance Trusts
KAREN S. GERSTNER & ASSOCIATES, P.C. 5615 Kirby Drive, Suite 306 Houston, Texas 77005-2448 Telephone (713) 520-5205 Fax (713) 520-5235 www.gerstnerlaw.com BASICS * Irrevocable Life Insurance Trusts Synopsis
More informationState Tax Deductions for Contributions to 529 Plans Presented by Advisor Name
State Tax Deductions for Contributions to 529 Plans Presented by Advisor Name Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Contributions
More informationTop 10 Estate Planning Ideas for Year-End: Tax Savings Available in 2010 May Not Last
Advisory Estates, Trusts & Tax Planning October 28, 2010 Top 10 Estate Planning Ideas for Year-End: Tax Savings Available in 2010 May Not Last by Jennifer Jordan McCall, Kim T. Schoknecht, Ellen K. Harrison
More informationPrepared For: The Client Family
Annuity Maximization Estate Planning and Deferred Annuities - Annuitization Prepared For: The Client Family Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA and
More informationState Tax Information
State Tax Information The information contained in this document is not intended or written as specific legal or tax advice and may not be relied on for purposes of avoiding any state tax penalties. Neither
More informationPrivate Wealth Management Trust & Estate Insights
Private Wealth Management Trust & Estate Insights March 2011 In This Issue Taking Advantage of the Increased Gift Tax Exemption Key Takeaways: The federal gift tax exemption has risen from $1 million per
More informationA Sole Proprietor Insured Buy-Sell Plan
A Sole Proprietor Insured Buy-Sell Plan At a sole proprietor s death, the business is dissolved and all business assets and liabilities become part of the sole proprietor's personal estate. Have you evaluated
More informationPlanning Solutions. Executive Bonus Plan. Program Highlights & Fact Finder. Transamerica Occidental Life Insurance Company
Planning Solutions Executive Bonus Plan Program Highlights & Fact Finder Transamerica Occidental Life Insurance Company A Rewarding Way to Meet Financial Goals Providing for the family, putting the kids
More informationCLIFF A CASE FOR CHARITABLE GIVING AND DEFENSIVE POSITIONING
THE FISCAL CLIFF A CASE FOR CHARITABLE GIVING AND DEFENSIVE POSITIONING The CriTTenTon FoundaTion & LJPr, LLC Leon C. LaBreCque, JD, CPa, CFP, CFa ! Preface The Perfect Tax Storm: Prospective Expiration
More informationThe Basics of Estate Planning
The Basics of Estate Planning A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all fi gures are based in USD. 1 The Basics of Estate Planning A White Paper by Manning &
More informationChapter 18 GENERATION-SKIPPING TRANSFER TAX
Chapter 18 GENERATION-SKIPPING TRANSFER TAX WHAT IS IT? This chapter discusses the generation-skipping transfer tax and planning with generation-skipping transfers, including the use of generation-skipping
More informationState Tax Information
State Tax Information The information contained in this document is not intended or written as specific legal or tax advice and may not be relied on for purposes of avoiding any state tax penalties. Neither
More informationGift and estate planning: Opportunities abound
Gift and estate planning: Opportunities abound Vanguard research July 2013 Executive summary. Under federal gift and estate tax rules, individuals can potentially make significant gifts that are exempt
More informationRobert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com
Law Offices of Robert J. Ross 1622 W. Colonial Parkway, Suite 201 (847) 358-5757 Inverness, Illinois 60067 Fax (847) 358-7088 Bob@RobertJRoss.com ESTATE PLANNING Estate planning is more than simply signing
More informationBUILDING FLEXIBILITY INTO THE TYPICAL IRREVOCABLE LIFE INSURANCE TRUST
BUILDING FLEXIBILITY INTO THE TYPICAL IRREVOCABLE LIFE INSURANCE TRUST Presented to the Kentucky Society of Certified Public Accountants, 48 th Annual Kentucky Institute on Federal Taxation, November 18,
More informationEstate Planning. Some common tools used to help meet those particular needs include:
Estate Planning The Importance of Having an Estate Plan Having an estate plan is one of the most important things you can do for your family. It's not just about planning for estate taxes; it's about developing
More informationWealth transfer and gifting strategies. A guide to lifetime gifts. Life s better when we re connected
Wealth transfer and gifting strategies A guide to lifetime gifts Life s better when we re connected Index 3 Introduction 4 Transfer tax basics 5 An overview of the federal gift tax system 6 Outright gifts
More informationThe New Tax Relief Act: How Will You Be Impacted?
STRATEGIC THINKING The New Tax Relief Act: How Will You Be Impacted? The President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ( the Act ) on December 17th,
More informationIn This Issue. July 5, 2013
July 5, 2013 Which States Reward College Savers? The last Adviser Fund Update focused on the basics of 529 plans. In this edition, we'll continue examining 529s with a look at tax implications, management
More informationIRREVOCABLE TRUSTS Memorandum to the Settlor and the Trustee
Memorandum to the Settlor and the Trustee by Layne T. Rushforth 1. GENERALLY This memorandum is for the settlor (creator) and the trustee (manager) of an irrevocable trust. There is a section for each
More informationLIFE INSURANCE TRUSTS
LIFE INSURANCE TRUSTS Robert M. Mendell, JD, CPA* Robert M. Mendell, Attorney at Law, P.C. 908 Town & Country Blvd. Suite 120 Houston, Texas 77024 (713) 888-0700 Fax: (713) 888-0800 Email: rmendell@mendellgroup.com
More informationBUSINESS DEVELOPMENT OUTCOMES
BUSINESS DEVELOPMENT OUTCOMES Small Business Ownership Description Total number of employer firms and self-employment in the state per 100 people in the labor force, 2003. Explanation Business ownership
More informationA Powerful Way to Plan: The Grantor Retained Annuity Trust
Strategic Thinking A Powerful Way to Plan: The Grantor Retained Annuity Trust According to The Taxpayer Relief Act of 2010, the estate and gift exemption amount has been increased temporarily, for 2011
More informationUsing Life Insurance and Private Foundations
Zero Estate Tax Strategy Using Life Insurance and Private Foundations Presented by: Joe Sample, [Designations per field stationery guidelines] [Company Approved Title][or][DBA Title][or][Brokerage Title]
More informationU.S. Taxes for Canadians with U.S. assets
U.S. Taxes for Canadians with U.S. assets December 2014 U.S. Gift, Estate and Generation Skipping Transfer Tax can affect Canadians who don t even live in the United States. This article examines how these
More informationHow To Know If You Should Convert To A Roth Ira
Why State Taxes Make Roth Conversion a Huge Opportunity for Americans Abroad David Kuenzi, CFP, Thun Financial Advisors September, 2010 Summary This note analyzes how the exemption from state taxation
More informationLife Insurance for Estate Taxes THE SIMPLEST SOLUTION TO AN ESTATE TAX PROBLEM
Life Insurance for Estate Taxes THE SIMPLEST SOLUTION TO AN ESTATE TAX PROBLEM M any successful individuals are shocked to learn that the federal estate tax may consume as much as 45% of their accumulated
More informationLife Insurance. Let the IRS Help You Make It The Most Profitable Year of Your Career. Secure Your Clients Futures. Unlock New Opportunities.
Life Insurance 2012 Let the IRS Help You Make It The Most Profitable Year of Your Career Secure Your Clients Futures. Unlock New Opportunities. Are You Talking To Your Affluent Clients About The December
More informationEstate Tax Reduction Strategies
Estate Tax Reduction Strategies Foreword This publication is designed to provide information in regard to estate planning and various estate tax reduction strategies. It is provided with the understanding
More informationWhen an Irrevocable Trust Is Not: Giving New Life to Insurance Trusts
When an Irrevocable Trust Is Not: Giving New Life to Insurance Trusts by Kevin B. Rack Must have independent trustee Take advantage of annual exclusion of $14,000 per beneficiary Requires annual letterwriting
More informationPutting Your IRA to Work
Putting Your IRA to Work Multi-Generational IRA Planning You ve worked hard for years to accumulate a significant amount of money in your individual retirement account (IRA) or rollover IRA. Now you can
More informationComprehensive Split Dollar
Advanced Markets Client Guide Comprehensive Split Dollar Crafting a plan to meet your needs. John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company New York (John
More informationAdvanced Markets Combining Estate Planning Techniques A Powerful Strategy
Life insurance can help meet many wealth transfer goals. The death benefit could cover estate taxes, for instance, avoiding liquidation of much of the estate to meet the estate tax bill. Even though a
More informationHarry's Goals and Objectives: After meeting with his team of advisors, Harry has defined his goals and objectives as: From Randall Fisher
Transferring Business Interests to Family Members: Sale of Non- Voting Stock Interests to Grantor Dynasty Trusts Volume 5, Issue 9 Some of my clients have family-owned or closely held business interests
More informationIrrevocable Life Insurance Trust Checklist
ESTATE PLANNING THE PRUDENTIAL INSURANCE COMPANY OF AMERICA Irrevocable Life Insurance Trust Checklist Transferring an Existing Policy or Purchasing a New Policy The following chart details the procedures
More informationIRA Maximization. Wealth transfer strategies to enhance your legacy CLC.1124 (05.14)
Maximization Wealth transfer strategies to enhance your legacy CLC.1124 (05.14) Congratulations! For many years you ve put in the hard work planning, saving and investing for retirement. With all of that
More informationTax Facts At-A-Glance
2016 Tax Facts At-A-Glance Income Taxes 2015 If Taxable Income is: But Not Of the Over Over The Tax is Amount Over Married Filing Jointly: $ 0 $ 18,450 $ 0 + 10% $ 0 18,450 74,900 1,845 + 15% 18,450 74,900
More informationCounty - $0.55/$500 - $.75/$500 depending on +/- 2 million population 0.11% - 0.15% Minnesota
22-Apr-13 State Deed Transfer and Mortgage Tax Rates, 2012 Alabama State Tax Description Transfer Fee Rate Deeds $0.50/$500 0.10% Mortgages $0.15/$100 0.15% Alaska Arizona $2 fee per deed or contract Flat
More information5 Generation-Skipping Transfer Tax Issues
5 Generation-Skipping Transfer Tax Issues OVERVIEW OF CHAPTER This chapter 1 discusses selected key generation-skipping transfer (GST) tax issues concerning life insurance. 2 The GST tax is one of the
More informationWealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected
Wealth Structuring and Estate Planning Your vision and your legacy Life s better when we re connected Inside 1 Helping you shape the future 2 The elements of wealth structuring 4 The power and flexibility
More informationAMERICAN JOURNAL OF FAMILY LAWYERS PRE & POST NUPTIAL AGREEMENTS GENERAL ESTATE PLANNING ISSUES
AMERICAN JOURNAL OF FAMILY LAWYERS PRE & POST NUPTIAL AGREEMENTS GENERAL ESTATE PLANNING ISSUES BETH S. COHN, ESQ. JABURG & WILK, P.C. 3200 N. Central Avenue, Suite 2000 Phoenix, Arizona 85012 Direct Dial
More informationSpousal Lifetime Access Trust Using Legacy Advantage SUL Insurance Policy
Spousal Lifetime Access Trust Using Insurance Policy Supplemental Illustration Valued Client & Valued Client Prepared by: MetLife Agent 2 Park Ave. New York, NY 1166 Insurance Products: Not A Deposit Not
More informationZero Estate Tax Strategy
Zero Estate Tax Strategy AN PLANNING STRATEGY USING LIFE INSURANCE, A FOUNDATION, AND WEALTH REPLACEMENT TRUST The Prudential Insurance Company of America 0257697 0257697-00003-00 Ed. 07/2015 Exp. 01/20/2017
More informationNON-RESIDENT INDEPENDENT, PUBLIC, AND COMPANY ADJUSTER LICENSING CHECKLIST
NON-RESIDENT INDEPENDENT, PUBLIC, AND COMPANY ADJUSTER LICENSING CHECKLIST ** Utilize this list to determine whether or not a non-resident applicant may waive the Oklahoma examination or become licensed
More informationHow To Get A Life Insurance Policy From A Trust
THE KUGLER SYSTEM ESTATE CONCEPTS TECHNIQUE BOOK TABLE OF CONTENTS Review of Important Terms and Concepts Chapter I: The Proposed Estate Strategy Simple Will Arrangement (assuming Mr. Kugler Predeceases
More informationIRREVOCABLE TRUST Questions and Answers
1. Can Ascensus Trust handle trusts for individuals? Yes, through an Irrevocable Trust using life insurance as the sole funding vehicle. 2. Can proceeds be paid to beneficiaries in installments? Yes, The
More information