Preserving Your Financial Resources Development Office 800 West Jefferson Street Kirksville, Missouri 63501 Phone: 1-86...
Presented by: Randy Rogers, CFP® Associate Vice President of Institutional Advancement 08/19/10 copyright www.brainyb...
This seminar is for informational purposes only and is not intended as legal or tax advice. Please consult your legal, fi...
Questions to be Answered <ul><li>How do I get out of debt and accumulate assets to build wealth? </li></ul><ul><li>Why are...
4. How does the time value of money concept apply to my retirement funds? 5. If I own real estate in two states, will I ha...
The Life Cycle of Debt and Assets <ul><li>Debt Accumulation </li></ul><ul><li>Debt Reduction </li></ul><ul><li>Asset Accum...
Why Plan for Income and Estate Taxes? <ul><li>To give you more disposable income from </li></ul><ul><li>reduced income...
Federal Income Tax Rates <ul><ul><ul><ul><li>2007 Rates (Single Individual) </li></ul></ul></ul></ul><ul><ul><ul><ul><...
Capital Gain Tax Rates <ul><li>2008 Rate (long-term) </li></ul><ul><li>2008 – 2010 ~ No capital gain taxes on 10 & 15% ta...
Four Time Tested Ways to Reduce Your Income Tax <ul><li>Deduct (itemized deductions, tax credits) </li></ul><ul><li>Conve...
Estate Planning is Necessary… <ul><li>To make sure assets are distributed in accordance with one’s wishes. </li></ul><ul...
Federal Estate and Gift Tax <ul><li>Gross estate includes all asset values </li></ul><ul><li>at date of death </li></ul><...
Gross Estate Includes All Assets Valued at Date of Death <ul><li>Cash, CDs, money market funds, US Treasuries </li></ul><u...
Unlimited Marital Deduction at Death of First Spouse Surviving Spouse has no estate tax liability at that time; but, WAT...
Estate Tax Credit for Every Individual ESTATE TAX EXEMPTIONS AND RATES 2008-2011 <ul><li>Year Rate Credit Exempt Amoun...
Annual Gift Tax Exclusion <ul><li>Annual gift tax exclusion amount of $12,000 per recipient to an unlimited number of reci...
Estate Planning Tools Estate Owner Will Living will and durable power of attorney Trusts
The Will (with pour-over provisions) <ul><li>If you have no plan, your state has one for you (State Testate Laws) </li></u...
Living Will and Durable Power of Attorney
Living Will (Health Care Directive) <ul><li>To determine the course of health care including: </li></ul><ul><ul><li>Withh...
General Durable Power of Attorney Appoints an agent to act in one’s behalf in the event of incapacity.
Trusts <ul><li>Revocable Living Trust ~ </li></ul><ul><li>(to avoid probate) </li></ul><ul><li>By-Pass Trust ~ </li></ul...
The Revocable Living Trust Allows You To: <ul><li>Own, control, change, and/or revoke </li></ul><ul><li>Be the trustee </l...
Dr. Joe and Mary’s Estate Analysis Sheltered by Marital Deduction Mary’s Death Depleted by Costs and Estate Tax Without Pl...
Dr. Joe and Mary with Bypass (B) Trust Maximizing Unified Tax Credit Amounts 9% Shrinkage Estate (Joe’s Death) $2,500,000 ...
Life Income Plan Charitable Gift Annuity <ul><li>Simple one-page contract </li></ul><ul><li>Transfer cash, stock, bonds </...
Charitable Gift Annuity One & Two-Life Payout Rates Sample One - Life Rates Sample Two - Life Rates Age 55 5.5% Both Age...
You Have a Choice… Choose Action <ul><li>to reduce your income taxes </li></ul><ul><li>to maximize your assets before an...
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Preserving Your Financial Resources Development Office

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Preserving Your Financial Resources Development Office

  • 1. Preserving Your Financial Resources Development Office 800 West Jefferson Street Kirksville, Missouri 63501 Phone: 1-866-626-2878, ext. 2180 Kirksville College of Osteopathic Medicine A College of A.T. Still University
  • 2. Presented by: Randy Rogers, CFP® Associate Vice President of Institutional Advancement 08/19/10 copyright www.brainybetty.com 2006 All Rights Reserved
  • 3. This seminar is for informational purposes only and is not intended as legal or tax advice. Please consult your legal, financial, or tax advisors for information of this nature and how any desired change may impact your particular situation. See Your Advisors
  • 4. Questions to be Answered <ul><li>How do I get out of debt and accumulate assets to build wealth? </li></ul><ul><li>Why are knowledgeable advisors important to me? </li></ul><ul><li>Why should I be concerned about income, dividend, and capital gain tax rates? </li></ul>
  • 5. 4. How does the time value of money concept apply to my retirement funds? 5. If I own real estate in two states, will I have probate costs in both states? 6. What are estate taxes? 7. Can I avoid estate taxes by giving all my assets to heirs before I die? 8.How can I supplement my/spouse’s retirement income & make a gift to charity?
  • 6. The Life Cycle of Debt and Assets <ul><li>Debt Accumulation </li></ul><ul><li>Debt Reduction </li></ul><ul><li>Asset Accumulation </li></ul><ul><li>Asset Distribution </li></ul>
  • 7. Why Plan for Income and Estate Taxes? <ul><li>To give you more disposable income from </li></ul><ul><li>reduced income tax rates </li></ul><ul><li>To take advantage of reduced dividend and </li></ul><ul><li>capital gain tax rates </li></ul><ul><li>To reduce or avoid estate taxes for the benefit of heirs </li></ul>
  • 8. Federal Income Tax Rates <ul><ul><ul><ul><li>2007 Rates (Single Individual) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>35% ($349,701+) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>33% ($160,851 - $349,700) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>28% ($77,101 - $160,850) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>25% ($31,851 - $77,100) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>15% ($7,826 - $31,850) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>10% (0 - $7,825) </li></ul></ul></ul></ul>
  • 9. Capital Gain Tax Rates <ul><li>2008 Rate (long-term) </li></ul><ul><li>2008 – 2010 ~ No capital gain taxes on 10 & 15% tax brackets) </li></ul><ul><li>15% for all higher brackets </li></ul><ul><li>Short term gains (one year or less) are taxed at the taxpayers highest ordinary income tax rate </li></ul>
  • 10. Four Time Tested Ways to Reduce Your Income Tax <ul><li>Deduct (itemized deductions, tax credits) </li></ul><ul><li>Convert (tax-free or less taxed securities) </li></ul><ul><li>Divert (income to child - lower tax rate) </li></ul><ul><li>Defer ( contribute to retirement plan) </li></ul>
  • 11. Estate Planning is Necessary… <ul><li>To make sure assets are distributed in accordance with one’s wishes. </li></ul><ul><li>To make sure probate is avoided. </li></ul><ul><li>To make sure estate taxes are avoided or reduced. </li></ul><ul><li>To make sure your wishes concerning life support issues are respected. </li></ul>
  • 12. Federal Estate and Gift Tax <ul><li>Gross estate includes all asset values </li></ul><ul><li>at date of death </li></ul><ul><li>Unlimited marital deduction </li></ul><ul><li>Estate tax credit </li></ul><ul><li>Annual gift tax exclusion </li></ul><ul><li>Charitable contributions </li></ul>
  • 13. Gross Estate Includes All Assets Valued at Date of Death <ul><li>Cash, CDs, money market funds, US Treasuries </li></ul><ul><li>Stock, bonds, mutual funds </li></ul><ul><li>Life insurance </li></ul><ul><li>Personal residence, vacation home </li></ul><ul><li>Other real estate </li></ul><ul><li>Retirement Funds (subject to possible double-taxation) </li></ul><ul><li>All other assets owned by the decedent </li></ul>
  • 14. Unlimited Marital Deduction at Death of First Spouse Surviving Spouse has no estate tax liability at that time; but, WATCH OUT LATER !
  • 15. Estate Tax Credit for Every Individual ESTATE TAX EXEMPTIONS AND RATES 2008-2011 <ul><li>Year Rate Credit Exempt Amount Top Tax </li></ul><ul><li>2008 $780,800 $2,000,000 45% </li></ul><ul><li>$1,455,800 $3,500,000 45% </li></ul><ul><li>One year repeal of estate tax </li></ul><ul><li>2011 $345,800 $1,000,000 55% </li></ul>
  • 16. Annual Gift Tax Exclusion <ul><li>Annual gift tax exclusion amount of $12,000 per recipient to an unlimited number of recipients. (Inflation indexed) </li></ul><ul><li>Married couples may elect to split gifts </li></ul><ul><li>i.e., $24,000 per couple. </li></ul><ul><li>Direct payments of medical expenses and qualified tuition costs are excluded from Federal Gift Tax. </li></ul>
  • 17. Estate Planning Tools Estate Owner Will Living will and durable power of attorney Trusts
  • 18. The Will (with pour-over provisions) <ul><li>If you have no plan, your state has one for you (State Testate Laws) </li></ul><ul><li>Probate Process </li></ul><ul><li>Avoid Probate by Title, Contract, or Trust </li></ul>
  • 19. Living Will and Durable Power of Attorney
  • 20. Living Will (Health Care Directive) <ul><li>To determine the course of health care including: </li></ul><ul><ul><li>Withholding of artificially supported </li></ul></ul><ul><ul><li>nutrition and hydration. </li></ul></ul><ul><ul><li>Use of medications to relieve pain without regard to other consequences. </li></ul></ul>
  • 21. General Durable Power of Attorney Appoints an agent to act in one’s behalf in the event of incapacity.
  • 22. Trusts <ul><li>Revocable Living Trust ~ </li></ul><ul><li>(to avoid probate) </li></ul><ul><li>By-Pass Trust ~ </li></ul><ul><li>(to maximize estate tax savings) </li></ul>
  • 23. The Revocable Living Trust Allows You To: <ul><li>Own, control, change, and/or revoke </li></ul><ul><li>Be the trustee </li></ul><ul><li>Have complete control during your lifetime </li></ul><ul><li>Avoid probate (and ancillary probate) </li></ul>
  • 24. Dr. Joe and Mary’s Estate Analysis Sheltered by Marital Deduction Mary’s Death Depleted by Costs and Estate Tax Without Planning 17.5% Shrinkage Estate (Joe’s Death) $2,500,000 Costs (8%) $200,000 Remainder $2,300,000 No Estate Tax (at death of first spouse) Mary Receives $2,300,000 Costs (8%) $184,000 Federal Estate Tax of $52,200 Children Receive $2,063,800
  • 25. Dr. Joe and Mary with Bypass (B) Trust Maximizing Unified Tax Credit Amounts 9% Shrinkage Estate (Joe’s Death) $2,500,000 Costs (8%) $200,000 Amount Remaining $2,300,000 No Estate Tax Mary Owns $300,000 Costs (8%) $24,000 B-Trust for Mary $2,000,000 Estate Tax -0- Children Receive $2,276,000
  • 26. Life Income Plan Charitable Gift Annuity <ul><li>Simple one-page contract </li></ul><ul><li>Transfer cash, stock, bonds </li></ul><ul><li>Guaranteed fixed payments for one or two-lives </li></ul><ul><li>Payout percentage based on age of income recipients </li></ul><ul><li>Tax benefits – deduction & income </li></ul><ul><li>Future gift to charity in donor’s name </li></ul>
  • 27. Charitable Gift Annuity One & Two-Life Payout Rates Sample One - Life Rates Sample Two - Life Rates Age 55 5.5% Both Age 55 5.0% Age 60 5.7% Both Age 60 5.4% Age 65 6.0% Both Age 65 5.6% Age 70 6.5% Both Age 70 5.9% Age 75 7.1% Both Age 75 6.3% Age 80 8.0% Both Age 80 6.9% Age 85 9.5% Both Age 85 7.9% * Rates effective July 1, 2003
  • 28. You Have a Choice… Choose Action <ul><li>to reduce your income taxes </li></ul><ul><li>to maximize your assets before and after retirement </li></ul><ul><li>to plan your estate more efficiently </li></ul><ul><li>to pass your assets on to heirs and charities of your choice </li></ul>

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