CH Capital Estate Planning

7/31/2019 CH Capital Estate Planning

1/41

CHCapitalPartnersLLC

EstatePlanning

BySokH.CordellSr.ManagingDirector

KnowwhoyouareworkingwithStrivingtoeducateandconsultSmallBusinessandMiddleMarketstohelpcreatejobsfor

ourfellowAmericans


2/41

WhatisEstatePlanning? An

ongoing

process

Transferandmanagementofassets

Careandsupportofdependents

Accordingtoyourwishes


3/41

SpecificConcerns Transferring

property

intact

Arrangingforcare/supportofdependents

Avoidingdisputesamongsurvivors

Avoidingintestacy(dyingwithoutawill)

Minimizingtheprobateprocess

Minimizinggiftandestatetaxes

Arrangingforphilanthropicconsiderations


4/41

Wills

Awill:

Identifiesheirs

Identifiesexecutor

Identifiesguardianforminorchildren

Mayminimizesettlementcostandestatetaxes


5/41

TransferringProperty


6/41

CareandSupportofDependents Identify

asuitable

guardian

Arrangeforfinancialsupport

Documentyourintentions

Secureresponsiblemanagement

Appointprofessionaltrustee(s)


7/41

AvoidingDisputes Objective,

professional

trustee

Durablepowerofattorney

Livingwill(righttodie)

Livingtrust(assetdistribution)

Controlwhileyoustillcan


8/41

DyingWithoutaWillA

judge

will

appoint

the

Administratorofyourestate

Guardian(s)ofyourchildren

Administratorwilloverseethe

Settlementofyourestate

Dispositionofyourassets


9/41

TheProbateProcess

Withorwithouta

will: Probate

Reviewfor

authenticityand

legality

Settleestate

and

distributeassetsExpensive

and

timeconsuming

Avoidprocessby

establishingaTRUST

Expensiveand

timeconsuming

Avoidprocessby

establishingaTRUST

Settleestate

and


and

timeconsuming

Avoidprocessby

establishingaTRUST

Reviewfor

authenticityand

legality

Settleestate

and


and

timeconsuming

Avoidprocessby

establishingaTRUST

Withorwithouta

will: Probate

Reviewfor

authenticityand

legality

Settleestate

and


and

timeconsuming

Avoidprocessby

establishingaTRUST


10/41

Gift&EstateTaxesIn

the

absence

of

planning

prior

to

death,

you

may

have

an

unintended

heir:

Uncle

Sam


11/41

Gift&EstateTaxes All

transfers

during

life

or

at

death

are

taxed

Annualgifttaxexclusion

Lifetimeexemptionamount:

$1,000,000

during

life $1,000,000atdeathtoindexupwards

UnlimitedCharitableDeduction

UnlimitedMaritalDeduction


12/41

PhilanthropicConsiderationsCombine

charity

with

tax

and

estate

planning:

Fundaworthycause

Obtainspecialtaxadvantages

Income

Tax

Advantages EstateTaxAdvantages

Establishacharitabletrust


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UnlimitedMartialDeduction No

tax

transfers

to

spouse

MostuseAlltoSpousewill

Highlyinefficient

Taxedon

second

death

Wastedunifiedtaxcredit


14/41

TheHospitalityOwnerStory Died

unexpectedly

at

age

59

HospitalityEnterprisevaluedat$150million

Childrenfacedaninheritancetaxof55%

[It]could

have

been

the

endofourcompany.

HospitalityOwner


15/41

DisinheritUncleSam

ESTATEVALUE AMOUNTOFTAX RATEONEXCESS$500,000$750,000 $155,800 37 %

$750,000$1,000,000 248,300 39

$1,000,000$1,250,000 345,800 41

$1,250,000$1,500,000 448,300 43

$1,500,000$2,000,000 555,800 45

$2,000,000$2,500,000 780,800 49

$2,500,000$3,000,000 1,025,800 53

EstateTaxesin2013


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DisinheritUncleSam Unlimited

marital

deduction:

Property

may

transfer

tax

free

to

surviving

spouse

Gifting:Helpsreducethesizeofyourestate,solessistaxed

Federalestatetaxexclusion:$1,000,000in2002and2003

Bypass

trust:

Helps

preserve

the

estate

tax

exclusion

for

both

spouses


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WhatMethodsAreAvailable?Asset

Freezing

and

gifting

technique

LLC,LLPandFLP

GRAT

GRUT

QPRT

CRAT

CRUT


18/41

EstateProvisionsStarting

in

2010:

CarryOverCostBasisRuleswillbeineffect.

InheritedpropertynolongerreceivesastepupinCostBasis.

CarryOver

Basis

will

be

the

LOWER

of

cost

basis

to

the

deceasedorthefairmarketvalueonthedateofdeath.

OneTimeBasisAdjustment

$1,300,000stepupforheirs

$3,000,000stepupforSurvivingSpouse

Basisinpropertycannotbeadjustedaboveitsdateofdeath

value.


19/41

CaseStudy:AllToMySpouse John

and

Jane

Affluent

$3,000,000combinedtaxableestate

Johndiesfirst

Calculationarefor2002


20/41

CaseStudy:AllToMySpouse

ForIllustrativepurposesonly. Individualresultswillvary.

John

$1.5Million

Jane

$1.5Million

ViaUnlimited

MaritalDeduction

JanesNewEstate

Value:$3M

NetEstateTaxDue

$930,000

UnifiedTaxCredit

$345,800

TentativeEstateTax

$1,275,800

UsingUnlimitedMaritalDeductionAndUnifiedTaxCredit


21/41

EstatePlanningSolutions:Trusts Legal

device

to

transfer

assets

Nameatrusteetoadminister

Privacyandprotection

Minimizeprobateprocess

Professionalassetmanagement


22/41

UnifiedCredit(Family)Trust Directs

$1,000,000

into

trust

(for

2002)

Estatetaxoffsetbyunifiedcredit

Trustisseparatetaxentity

Survivingspousemayreceiveincome

Decedentdesignatesbeneficiaries


23/41

MaritalTrust Funded

on

death

of

first

spouse

Noestatetaxdueonfirstdeath

Survivingspousemustreceiveincome

Accesstoprincipal/namebeneficiaries

Noprobateorothercourtproceedings


24/41



John

$1.5Million

Jane

$1.5Million

UnifiedCreditTrust

$1,000,000Noestatetaxdue

JanesNewEstate

Value:$2M

TentativeEstateTax

$780,000

UnifiedTaxCredit

$345,800

UseofUnifiedCredit

$345,800

UsingUnifiedCreditTrustandMaritalTrust

MaritalTrust

$500,000Noestatetaxduenow

TotalTaxesDue

$435,000


25/41

QTIPTrustQualified

Terminable

Interest

Property

Trust

VariationofMaritalTrust

Protectassetsforfinalheirs

Mustprovideincometospouse

Grantordesignatesbeneficiaries


26/41

IrrevocableLifeInsuranceTrustLiquidity

and

tax

reduction

Whentaxesareinevitable

Cash

payment

in

nine

months Preventforcedsaleofassets


27/41



John

$1.5Million

Jane

$1.5Million

UnifiedCreditTrust

$1,000,000Noestatetaxdue

JanesNewEstate

Value:$2M

EstateTax

Due

$435,000

ToILITforLife

InsurancePurchaseInsurancePolicy

IrrevocableLifeInsuranceTrust

MaritalTrust

$500,000Noestatetaxduenow

Liquidityfor

Taxes

Johnand

Jane

GiftofPremium


28/41

CharitableTrusts Charitable

remainder

unitrusts

Charitableremainderannuitytrusts

Pooledincomefunds

Charitableleadtrusts


29/41

FundingOptions$435,000

Tax

Bill

Paythetaxesoutright

Borrow

the

money Givelargesumstocharity

EstablishanILIT

Cashduewithinninemonthsofdeath


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ComparingSolutions

UnlimitedMarital

Deduction

OnlyUnlimited

Marital

Deduction

Only

UnifiedTax

and

Marital

TrustsUnified

Tax

and

Marital

Trusts

ILITILIT

$930,000

$435,000

$2,500

Totalestimatedpremiumfor$500,000SecondToDiepolicyfor50yearoldcoupleingoodhealth.

ForIllustrativepurposesonly. Premiumswillvary.


31/41

EstatePlanning:WhyCHCapitalPartnersLLC?Thoughtfulplanning. Thesuccessfultransferofwealthtothenextgenerationdependsonthoughtfulplanningandpainstakingimplementationandadministrationofyourplan.

Fullbreadthofservices. AtCHCapitalPartners,wewillworkwithyoutodevelopacomprehensive

estate

plan.

Depthofexperience. CHCapitalPartnershashelpedthousandsofourclientsdevelopcomprehensiveestateplansthatprovidepeaceofmind.

Teamwork.Becauseweprovideforyourdaytodayfinancialneeds,we haveaccesstoresourcesandmuchofthefinancialinformationthatwillbeneededinthedevelopmentofyourplan.


32/41

EstatePlanningWe

are

experienced

in

dealing

with

all

aspects

of

estate

planning

and

willworkinconjunctionwithyourattorneytoguideyouthroughtheprocesstoensurethatyourplantakesintoconsiderationwhatisimportanttoyou.

Wecan:

Workwithyoutouncoverallaspectsthatshouldbeconsideredinplanningyourestate.

Recommendhowtrustscanbeusedtoaccomplishyourgoals.

Employstrategiestomaximizeyourestateandminimizeestatetaxes.

Seethat

your

estate

plan

includes

directions

on

fulfilling

your

goals

for

your

familyandheirs,orforcharitablegiving.

Assistyouindetermininganexecutororpersonalrepresentative.


33/41

EstateandTaxPlanningWith

agoal

of

maximizing

your

estate

and

minimizing

complications,

we

will

workcloselywithyouandyourattorneyortaxadvisor,inthedevelopmentofa

planthattakesintoconsiderationallthefactorsthatmayaffectyourlegacy:

Yourfamily

situation

Yourfinancialsituation

Taxlaw

Thechoiceofanexecutorand/ortrustee(s)


34/41

EstatePlanningConsiderationsWhen

developing

an

estate

plan

for

you,

we

will

ask

you

to

carefully

considerseveralquestionsbeforebeginningtheprocess.

Wewilldiscussthefollowing:

Whoshouldinherityourassets?

Wewillguideyouthroughthemaritalrightsissuesforyourstate

Shouldyourchildrenshareequallyinyourestate?

Doyouwishtoincludegrandchildrenorotherbeneficiaries?

Wouldyou

like

to

leave

assets

to

charity?

Whenandhowshouldtheyinherittheassets?


35/41

EstatePlanningConsiderationsWhich

assets

should

they

inherit?

Ifyouownabusiness,shouldthestockpassonlytochildrenactiveinthe

business?Ifso,shouldtheotherchildrenbecompensatedwithotherassets?

Ifyouownrentalproperties,shouldallbeneficiariesinheritthem?Dothey

havetheabilitytomanageproperty?Whatarethecashneedsofthe

beneficiaries?


36/41

Financial,EstateAndTaxPlanningServicesFinancial

planning

provides

an

opportunity

to

quantify

your

current

situationandtocreateaplantoachieveyourfinancialgoals.

Wecanprovide:

Modularplanningfocusedonaparticularneedsuchaseducationalfunding,

retirementplanning,incometaxorestateplanning

Acomprehensiveplanencompassingallaspectsofyourfinanciallife

Solutionsare

provided

to

both

individuals

and

families,

and

closely

held

or

familyownedbusinessowners.

Allestateplanningservicesareprovidedwiththeparticipationofyourpersonalattorney,whoshouldreviewallsuchmaterials. CHCapitalPartnersLLCdoesnotpreparewillsortrustdocuments.


37/41

RIAServicesYou

can

benefit

from

acomprehensive

range

of

full

service

or

discount

brokeragesolutions:for$5MMandHigher

Traditionalbrokerageproductsincludingstocktrading,fixedincometrading,

mutualfunds,UITs,annuities,optionsandbrokeredcertificatesofdeposit.

Mutualfundandseparateaccountwrapprograms.

RetirementandeducationalfundingvehiclesincludingIRAs,RothIRAs,SEPs,

401(k)sand

529

Plans.


38/41

InsuranceServicesOur

range

of

insurance

solutions

includes:

Lifeinsurance:wholelife,universallife,variablelife,termandsecondtodie

policies

Propertyandcasualtyinsurance

Grouphealth

insurance

and

benefits

Disabilityincomeinsuranceforbothindividualsandgroups

Longtermcare

Nonqualifiedretirementplanning

Businesssuccessionplanning

Enhancedexecutivecompensation


39/41

TrustServicesWewillworkcloselywithyouandothermembersofyourteamtodesigntruststohelpmeetyourspecificobjectives.

Solutionsinclude:

Revocableliving

trusts

Irrevocabletrusts

Dynastytrusts

Testamentarytrusts

Generationskippingtrusts

Irrevocablelifeinsurancetrusts

(ILITs)

Offshoretrusts

Fullservice

real

estate

investment

managementservices,including

timberlandandnaturalresource

management

Charitabletrusts

LLCorFLP


40/41

CharitableServicesWe

can

help

you

structure

philanthropic

solutions

to

meet

your

charitable

needs

andtoalignwithyouroverallfinancialplan.

Solutionsinclude:

IndividualandFamilyConsulting

Wealthstewardshipissues,practices&plans

NotforProfitConsulting

Spendingpolicies

Investmentobjectivesetting

Assetallocation

Grantmakingpolicies

CharitableLead

Trusts

CharitableRemainderTrusts

InsuranceSolutions

PrivateFoundations


41/41

CreditServicesCH

Capital

Partners

provides

lending

for

all

of

your

financial

needs:

Customizedcreditandstructureddebt

Liquidityfinancing,includingsecuredandunsecuredloans,andassettransfer

financingstrategies

Mortgageandrealestatelending

Professionalpracticelending

Securitizedlendingfordiversificationandriskmanagement

Marginlending

for

stock

option

exercise

Documents

CH Capital Estate Planning