2. What
is
Estate
Planning?
Tax, Probate!
Growth!
Assets!
Family!
Me!
1!
2!
3. What
is
Estate
Planning?
Me!
Family!
Assets!
Growth!
Tax, Probate!
2!
3!
4. Where
We
Are
Now
• American
Taxpayer
Relief
Act
of
2012
– Rules
are
now
“permanent”
(that
is,
un5l
Congress
changes
its
mind)
3!
5. 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!
6. 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!
7. 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!
8. 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!
9. 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!
10. So
What
Does
This
Mean?
(Con’t)
• Do
you
sHll
want
“A-‐B”
trust
planning?
– Complexity
– Asset
protec5on
– Remarriage
protec5on
– Preserving
portability
9!
11. 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!
12. 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!
13. 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!
14. 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!
15. 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!
16. The
Moral
of
the
Story
• One
of
the
cool
things
about
estate
planning
is
we
usually
can
accomplish
all
your
goals
15!
18. What’s
The
Next
Step?
Jan
Copley
(626)
696-‐3145
jan@pasadenalawgroup.com
NAE
Clare
Flanagan
Director
of
Planned
Giving
(202)
334-‐1536
cflanagan@nas.edu
17!
19. Thank
You
70
South
Lake
Avenue
|
Suite
1000
Pasadena,
CA
91101
P
(626)
696-‐3145
www.PasadenaLawGroup.com
18!