Over the last several years we’ve developed an interesting strategy that involves making a significantly impactful gift to charity as well as helping our wealthy families reduce taxes to the lowest amount possible. This alternative to a TCLAT can be very attractive in the right situation. Join us to see how the idea might be useful for your high net worth clients Learn more at www.inknowvision.com

1. Technical Webinar
©2012. InKnowVision LLC. All rights reserved. www.inknowvision.com

2. Upcoming Webcasts:
• Marketing Webinar
• May 23rd
• Next Case Study
• June 6th
• Technical
• June 20th
www.InKnowVision.com © 2012

3.  October
 Survey being sent
InKnowVision 3

4. Note to Charity
InKnowVision®
May, 2012

5.  Zero estate tax
 Money to charity
 Delayed inheritance to kids
 Unknown exemption amount
 Reference session on our web site
InKnowVision 5

6. Transfer
$5M Residual $5M
Estate Above TCLAT
Exemption
$334k for
25 Years
Assumptions
Term 25 Years
Rate 6.69%
AFR 4.2% Charity

7. TCLAT
25 years of Assumed
Growth at 7% $5.9M
Heirs

8.  Reduce estate tax
 Solution for Illiquidity
 Solution for uninsurable clients
 Increase assets to heirs
 Accelerate assets to heirs
 Gifts to charity
InKnowVision 8

9. Sale of assets
Parent(s) Trust for Heirs
Promissory
Note to
Parents
Not
Note
e
InKnowVision 9

10. Parent(s)
Trust for Heirs
Not Buys Insurance
e
Who can be insured?
Life Insurance Co
InKnowVision 10

11. Parent(s) Trust for Heirs
Note
100% Charitable Deduction
•Reduce estate tax
Charity •Use disclaimer
•Use TCLAT
InKnowVision 11

12. Parent(s) Trust for Heirs
Promissory
Note
Paid with Life Insurance Co
Charity Insurance
Proceeds
Note
InKnowVision 12

13.  $40M estate
 $36.5M is illiquid commercial real estate
 Real estate is:
◦ Devalued
◦ Distressed
◦ Needs updating
◦ Needs rent increases
◦ Liability issues everywhere
 Clients are 88 (and dying) and 85 and
uninsurable
 If they die, estate tax of $9M-$16M
 What should they do?
InKnowVision 13

14. Sale of RE assets
Parent(s) Trust for Heirs
$27M Note
Not
Note
e
Assets were owned in a holding company
Recapitalized and sold at a 25% discount.
InKnowVision 14

15. Parent(s) Trust for Heirs
Buys Insurance
Not on
e
child/children
Cash flow pays note
payment and insurance
premium
Life Insurance Co
InKnowVision 15

16. Parent(s) Trust for Heirs
Owns
Real Estate
Pays Premium
Note
100% Charitable Deduction
•Reduce estate tax
Charity •Use disclaimer
•Use TCLAT
InKnowVision 16

17. Parent(s) Trust for Heirs
Owns all assets
less cost of
insurance
Promissory
Note
Paid with Life Insurance Co
Charity Insurance
Proceeds
Note
InKnowVision 17

18.  Charity holds note from estate
 Long term
 Interest accrues
 Low interest rate
 Collateralized?
 What is value of note
 How much would charity take for cash today?
InKnowVision 18

19.  Design
 Illustrations
 Insurance
 Documents
 Know how
InKnowVision 19