charitable lead trusts.ppt

Credit Crisis Creates Estate Planning Opportunities

Anticipating Opportunities.Developing Solutions.

J. Max Barger, JD, MBA

Financial Crisis

half full

120% of Applicable

Section 7520

Revenue

Federal Midterm

Rate

Interest Rate

Ruling

12/7/2007 4.97% 5.00% 2007-70

1/8/2008 4.31% 4.40% 2008-4

2/8/2008 4.22% 4.20% 2008-9

3/8/2008 3.57% 3.60% 2008-11

12/8/2008 3.43% 3.40% 2008-53

1/9/2009 2.48% 2.40% 2009-1

2/9/2009 1.98% 2.00% 2009-5

3/9/2009 2.33% 2.40% 2009-8

Section 7520 Interest Rates

Valuation Month

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

$1,000,000.00

Gift Tax Credit Used

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

$1,000,000.00

Gift Tax Credit Used

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

$1,000,000.00

Gift Tax Credit Used

Charitable Lead Trust: Income to Charity for term of years or life of Grantor

Outright Gift: Immediate gift tax on

entire value of gift

Appreciated value passes to remainder

beneficiaries

Credit Crisis Creates Estate Planning Opportunities

Anticipating Opportunities.Developing Solutions.

J. Max Barger, JD, MBA