nae 2013-01-30-slides final
TRANSCRIPT
Update on Planning or, What Do I Do
Now?
Presented by!
2!
Me!
Family!
Assets!
Growth!
Tax, Probate!
What is Estate Planning?
1!
3!
Me!
Family!
Assets!
Growth!
Tax, Probate!
What is Estate Planning?
2!
Where We Are Now
• American Taxpayer Relief Act of 2012
– Rules are now “permanent” (that is, un5l Congress changes its mind)
3!
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!
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!
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!
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!
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!
So What Does This Mean? (Con’t)
• Do you sHll want “A-‐B” trust planning?
– Complexity
– Asset protec5on – Remarriage protec5on
– Preserving portability
9!
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!
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!
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!
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!
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!
The Moral of the Story
• One of the cool things about estate planning is we usually can accomplish all your goals
15!
QuesHons
16!
What’s The Next Step?
Jan Copley (626) 696-‐3145
NAE Clare Flanagan
Director of Planned Giving (202) 334-‐1536
17!
Thank You
70 South Lake Avenue | Suite 1000
Pasadena, CA 91101
P (626) 696-‐3145
www.PasadenaLawGroup.com
18!