Zero Tax and Asset Protection Planning: Integrating Charitable Planning Tools

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1 Zero Tax and Asset Protection Planning: Integrating Charitable Planning Tools Presented By: Jeffrey R. Matsen 1 August 2012 By Jeffrey R. Matsen Wealth Strategies Counsel

2 JEFFREY R. MATSEN Worth Magazine: Matsen Included In Nation s Top 100 Attorneys Founder and Partner In Charge of Matsen Voorhees Law, the Estate Planning and Business Transaction Division of a Division of Bohm Matsen, LLP, of Costa Mesa, California A Southern California Super Lawyer (Los Angeles Magazine), with a national reputation for emphasizing wealth preservation for his high net worth and professional, accomplishment driven clientele Nationally recognized CLE Speaker in the areas of asset protection and LLCs Areas of emphasis include: International and Domestic Asset Protection, Estate Planning & Wealth Preservation, Real Estate Acquisitions & Development, Business Formation & Transactions, Probate, and Trust Administration Certified Business Appraiser by the National Society of Appraiser Specialists Member, Society of Trust & Estate Practitioners ( STEP ) Fellow, Center of International Legal Studies Professor, Chapman University School of Law & Western State University College of Law, in Business & Estate Planning Visiting faculty member, European law schools Awarded highest rating ( AV ) for competency and ethics, as published in the prestigious international Martindale Hubbell attorney directory Awarded highest rating ( 10/10 Superb )by The Nationally Renowned Attorney Rating Service, AVVO Recognized as one of O.C. s Top Lawyers by OC METRO Magazine 2 Wealth Strategies Counsel

3 Jeff Can Help You to Engage the Donor You can refer to Jeff as part of my team and piggyback on his reputation and expertise including the authorship of his book. 3 Wealth Strategies Counsel

4 Jeff s Partner Can Help You Engage Donors Tim Voorhees has written a book on Zero Tax Planning using charitable tools 35 years of experience developing and implementing Zero Tax Plans. JD - Southern Methodist University - Corporate & Estate Planning Law; MBA - Arizona State University - Finance & Accounting Published in Estate Planning Magazine, the Journal of Practical Estate Planning, Insurance News, the elite advisor website of Financial Planning Magazine, and other leading publications. Tim teaches Best Tools Workshops for advisers interested in learning how to integrate the most effective zero tax planning tools into financial and estate plans. He also conducts Best Practices Workshops for advisers who seek to integrate advanced Wealth Counseling technologies into their practices Spoken at national conferences of the National Network of Estate Planning Attorneys, ALI-ABA, Kingdom Advisors, the Southern California Tax & Estate Planning Forum, etc. He has also presented at annual conferences for numerous financial advisory firms. Provides mediation and arbitration services as a Certified Christian Conciliator Led teams that have developed hundreds of Family Wealth Blueprints for high net worth clients 4 August, 2012, Voorhees Intellectual Property LLC Wealth Strategies Counsel

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6 Five Charitable Tools to Implement Now Donor Advised Fund Charitable Remainder Trust Charitable Lead Trust Private Foundation Charitable LLC Wealth Strategies Counsel

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13 Five Charitable Tools Explained Donor Advised Fund Charitable Remainder Trust Charitable Lead Trust Private Foundation Charitable LLC Wealth Strategies Counsel

14 Donor Advised Fund Examples Wealth Strategies Counsel

15 Charitable Remainder Trust Case Study Wealth Strategies Counsel

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20 Charitable Lead Trust Case Study Wealth Strategies Counsel

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24 PRIVATE FOUNDATION PROS/CONS Organization organized and operated for Testing of Public Safety Private Foundation Wealth Strategies Counsel

25 ADVANTAGES Retains maximum control Controls timing of tax benefits Name identification Private Foundation Wealth Strategies Counsel

26 FEDERAL TAX POLICY (TRA 69) Self-dealing Activities directed toward specific purposes Limited business ownership and operations Investment speculation Private Foundation Wealth Strategies Counsel

27 DISADVANTAGES Limitations on Deductions Public Charities General 50% of AGI Capital Gain Assets 30% of AGI Private Foundations General 30% of AGI Capital Gain Assets 20% Private Foundation Wealth Strategies Counsel

28 DISADVANTAGES Appreciated Property Private Foundation Wealth Strategies Counsel

29 DISADVANTAGES Excise Tax Self-dealing Failure to make minimum distributions Excess business holdings Risky investments Certain expenses Private Foundation Wealth Strategies Counsel

30 DISADVANTAGES Investment Income Tax Compliance Requirements Private Foundation Wealth Strategies Counsel

31 Charitable LLC Case Study Wealth Strategies Counsel

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51 Disclaimer Family Office Services, Inc. and Matsen Voorhees Law, a division of Bohm Matsen LLP, do not give tax, accounting, regulatory, or legal advice to its clients unless clients have a current engagement defined in a signed retainer agreement. Clients must consult with advisers regarding the tax, accounting, and legal implications of these proposed strategies before any strategy is implemented. The effectiveness of any of the strategies described will depend on a client s individual situation and on a number of complex factors. Nothing in this presentation is intended to offer securities or investment advice. Any discussion in this presentation relating to tax, accounting, regulatory, or legal matters is based on our understanding as of the date of this presentation. Rules in these areas are constantly changing and are open to varying interpretations. 51 Wealth Strategies Counsel

52 JEFFREY R. MATSEN Phone: Founder and Partner In Charge of Matsen Voorhees Law, the Estate Planning and Business Transaction Division of a Division of Bohm Matsen, LLP, of Costa Mesa, California A Southern California Super Lawyer (Los Angeles Magazine), with a national reputation for emphasizing wealth preservation for his high net worth and professional, accomplishment driven clientele Nationally recognized CLE Speaker in the areas of asset protection and LLCs Areas of emphasis include: International and Domestic Asset Protection, Estate Planning & Wealth Preservation, Real Estate Acquisitions & Development, Business Formation & Transactions, Probate, and Trust Administration Certified Business Appraiser by the National Society of Appraiser Specialists Member, Society of Trust & Estate Practitioners ( STEP ) Fellow, Center of International Legal Studies Professor, Chapman University School of Law & Western State University College of Law, in Business & Estate Planning Visiting faculty member, European law schools Awarded highest rating ( AV ) for competency and ethics, as published in the prestigious international Martindale Hubbell attorney directory Awarded highest rating ( 10/10 Superb )by The Nationally Renowned Attorney Rating Service, AVVO Recognized as one of O.C. s Top Lawyers by OC METRO Magazine 52 Wealth Strategies Counsel