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DISPOSITIVE PROVISIONS OF WITH NO PLANNING SETTLOR Living Trust ALL TO SPOUSE NO ESTATE TAX $6,000,000 TO HEIRS Unlimited Marital Deduction TAX AT SPOUSES.

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Presentation on theme: "DISPOSITIVE PROVISIONS OF WITH NO PLANNING SETTLOR Living Trust ALL TO SPOUSE NO ESTATE TAX $6,000,000 TO HEIRS Unlimited Marital Deduction TAX AT SPOUSES."— Presentation transcript:

1 DISPOSITIVE PROVISIONS OF WITH NO PLANNING SETTLOR Living Trust ALL TO SPOUSE NO ESTATE TAX $6,000,000 TO HEIRS Unlimited Marital Deduction TAX AT SPOUSES DEATH $10,000,000 $6,000,000 40% Estate Tax 100% Joint Property

2 DISPOSITIVE PROVISIONS OF PROPOSED ESTATE PLAN TESTAMENTARY SETTLOR Living Trust MARITAL QTIP/QDOT TRUST TO SPOUSE NO ESTATE TAX $6,600,000 TO HEIRS FOR LIFE LIMITED BY CERTAIN STANDARD Credit Shelter Amount Unlimited Marital Deduction 100% TO HEIRS 40% ESTATE TAX AT SPOUSES DEATH $10,000,000 $1,500,000 $8,500,000 $5,100,000

3 DISPOSITIVE PROVISIONS OF PROPOSED ESTATE PLAN TESTAMENTARY ILIT $10,000,000 SETTLOR Living Trust $1,500,000 MARITAL QTIP/QDOT TRUST $6,500,000 TO SPOUSE NO ESTATE TAX $5,400,000 + $5 Mil. DB. = $10,500,000 TO HEIRS FOR LIFE LIMITED BY CERTAIN STANDARD Credit Shelter Amount Unlimited Marital Deduction 100% TO HEIRS TAX AT SPOUSES DEATH $2,000,000 JSWL $5 Million Death Benefit IRREVOCABLE LIFE INSURANCE TRUST 100% TO HEIRS Gifting $5,000,000 $1,500,000 Net $3,900,000

4 Charitable Remainder Annuity Trust John Jones - Age 74 Mary Jones - Age % Annuity Trust Charity/Family Foundation Property Value $1,000,000 Cost $100,000 Gain $900,000 Principal $1,000,000 Annual Annuity Income $63,800 Estimated Income for 2 lives over 20.2 years $1,228,760 Transfer and sell tax-free. Bypass up to $900,000 gain may save $135,000. Income tax deduction of $272,825 may save $95,489. If trust earns 7.81%, pays 6.38% annuity, trust value increases. After two lives, trust passes without probate to charity.

5 PROPOSED ESTATE PLAN TESTAMENTARY ILIT + Charitable Trust/Family Foundation PROPOSED ESTATE PLAN TESTAMENTARY ILIT + Charitable Trust/Family Foundation $10,000,000 SETTLOR Living Trust $1,500,000 MARITAL QTIP/QDOT TRUST $5,500,000 TO SPOUSE NO ESTATE TAX $3,465,000 + $5 Mil. DB. = $8,465,000 TO HEIRS Credit Shelter Amount Unlimited Marital Deduction TAX AT SPOUSES DEATH $2,000,000 JSWL $5 Million Death Benefit IRREVOCABLE LIFE INSURANCE TRUST 100% TO HEIRS Gifting $5,000,000 $1,500,000 Net $3,465,000 CRAT $1,000,000 Family Foundation Heirs Are Directors $1,667,073 Estate Tax reduces to 37%


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