ch capital estate planning
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CHCapitalPartnersLLC
EstatePlanning
BySokH.CordellSr.ManagingDirector
KnowwhoyouareworkingwithStrivingtoeducateandconsultSmallBusinessandMiddleMarketstohelpcreatejobsfor
ourfellowAmericans
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WhatisEstatePlanning? An
ongoing
process
Transferandmanagementofassets
Careandsupportofdependents
Accordingtoyourwishes
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SpecificConcerns Transferring
property
intact
Arrangingforcare/supportofdependents
Avoidingdisputesamongsurvivors
Avoidingintestacy(dyingwithoutawill)
Minimizingtheprobateprocess
Minimizinggiftandestatetaxes
Arrangingforphilanthropicconsiderations
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Wills
Awill:
Identifiesheirs
Identifiesexecutor
Identifiesguardianforminorchildren
Mayminimizesettlementcostandestatetaxes
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TransferringProperty
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CareandSupportofDependents Identify
asuitable
guardian
Arrangeforfinancialsupport
Documentyourintentions
Secureresponsiblemanagement
Appointprofessionaltrustee(s)
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AvoidingDisputes Objective,
professional
trustee
Durablepowerofattorney
Livingwill(righttodie)
Livingtrust(assetdistribution)
Controlwhileyoustillcan
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DyingWithoutaWillA
judge
will
appoint
the
Administratorofyourestate
Guardian(s)ofyourchildren
Administratorwilloverseethe
Settlementofyourestate
Dispositionofyourassets
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TheProbateProcess
Withorwithouta
will: Probate
Reviewfor
authenticityand
legality
Settleestate
and
distributeassetsExpensive
and
timeconsuming
Avoidprocessby
establishingaTRUST
Expensiveand
timeconsuming
Avoidprocessby
establishingaTRUST
Settleestate
and
distributeassetsExpensive
and
timeconsuming
Avoidprocessby
establishingaTRUST
Reviewfor
authenticityand
legality
Settleestate
and
distributeassetsExpensive
and
timeconsuming
Avoidprocessby
establishingaTRUST
Withorwithouta
will: Probate
Reviewfor
authenticityand
legality
Settleestate
and
distributeassetsExpensive
and
timeconsuming
Avoidprocessby
establishingaTRUST
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Gift&EstateTaxesIn
the
absence
of
planning
prior
to
death,
you
may
have
an
unintended
heir:
Uncle
Sam
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Gift&EstateTaxes All
transfers
during
life
or
at
death
are
taxed
Annualgifttaxexclusion
Lifetimeexemptionamount:
$1,000,000
during
life $1,000,000atdeathtoindexupwards
UnlimitedCharitableDeduction
UnlimitedMaritalDeduction
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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
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TheHospitalityOwnerStory Died
unexpectedly
at
age
59
HospitalityEnterprisevaluedat$150million
Childrenfacedaninheritancetaxof55%
[It]could
have
been
the
endofourcompany.
HospitalityOwner
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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
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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.
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CaseStudy:AllToMySpouse John
and
Jane
Affluent
$3,000,000combinedtaxableestate
Johndiesfirst
Calculationarefor2002
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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
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EstatePlanningSolutions:Trusts Legal
device
to
transfer
assets
Nameatrusteetoadminister
Privacyandprotection
Minimizeprobateprocess
Professionalassetmanagement
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UnifiedCredit(Family)Trust Directs
$1,000,000
into
trust
(for
2002)
Estatetaxoffsetbyunifiedcredit
Trustisseparatetaxentity
Survivingspousemayreceiveincome
Decedentdesignatesbeneficiaries
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MaritalTrust Funded
on
death
of
first
spouse
Noestatetaxdueonfirstdeath
Survivingspousemustreceiveincome
Accesstoprincipal/namebeneficiaries
Noprobateorothercourtproceedings
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CaseStudy:AllToMySpouse
ForIllustrativepurposesonly. Individualresultswillvary.
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
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QTIPTrustQualified
Terminable
Interest
Property
Trust
VariationofMaritalTrust
Protectassetsforfinalheirs
Mustprovideincometospouse
Grantordesignatesbeneficiaries
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IrrevocableLifeInsuranceTrustLiquidity
and
tax
reduction
Whentaxesareinevitable
Cash
payment
in
nine
months Preventforcedsaleofassets
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CaseStudy:AllToMySpouse
ForIllustrativepurposesonly. Individualresultswillvary.
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
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CharitableTrusts Charitable
remainder
unitrusts
Charitableremainderannuitytrusts
Pooledincomefunds
Charitableleadtrusts
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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.
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EstatePlanning:WhyCHCapitalPartnersLLC?Thoughtfulplanning. Thesuccessfultransferofwealthtothenextgenerationdependsonthoughtfulplanningandpainstakingimplementationandadministrationofyourplan.
Fullbreadthofservices. AtCHCapitalPartners,wewillworkwithyoutodevelopacomprehensive
estate
plan.
Depthofexperience. CHCapitalPartnershashelpedthousandsofourclientsdevelopcomprehensiveestateplansthatprovidepeaceofmind.
Teamwork.Becauseweprovideforyourdaytodayfinancialneeds,we haveaccesstoresourcesandmuchofthefinancialinformationthatwillbeneededinthedevelopmentofyourplan.
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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.
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EstateandTaxPlanningWith
agoal
of
maximizing
your
estate
and
minimizing
complications,
we
will
workcloselywithyouandyourattorneyortaxadvisor,inthedevelopmentofa
planthattakesintoconsiderationallthefactorsthatmayaffectyourlegacy:
Yourfamily
situation
Yourfinancialsituation
Taxlaw
Thechoiceofanexecutorand/ortrustee(s)
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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?
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EstatePlanningConsiderationsWhich
assets
should
they
inherit?
Ifyouownabusiness,shouldthestockpassonlytochildrenactiveinthe
business?Ifso,shouldtheotherchildrenbecompensatedwithotherassets?
Ifyouownrentalproperties,shouldallbeneficiariesinheritthem?Dothey
havetheabilitytomanageproperty?Whatarethecashneedsofthe
beneficiaries?
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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.
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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.
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InsuranceServicesOur
range
of
insurance
solutions
includes:
Lifeinsurance:wholelife,universallife,variablelife,termandsecondtodie
policies
Propertyandcasualtyinsurance
Grouphealth
insurance
and
benefits
Disabilityincomeinsuranceforbothindividualsandgroups
Longtermcare
Nonqualifiedretirementplanning
Businesssuccessionplanning
Enhancedexecutivecompensation
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TrustServicesWewillworkcloselywithyouandothermembersofyourteamtodesigntruststohelpmeetyourspecificobjectives.
Solutionsinclude:
Revocableliving
trusts
Irrevocabletrusts
Dynastytrusts
Testamentarytrusts
Generationskippingtrusts
Irrevocablelifeinsurancetrusts
(ILITs)
Offshoretrusts
Fullservice
real
estate
investment
managementservices,including
timberlandandnaturalresource
management
Charitabletrusts
LLCorFLP
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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
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CreditServicesCH
Capital
Partners
provides
lending
for
all
of
your
financial
needs:
Customizedcreditandstructureddebt
Liquidityfinancing,includingsecuredandunsecuredloans,andassettransfer
financingstrategies
Mortgageandrealestatelending
Professionalpracticelending
Securitizedlendingfordiversificationandriskmanagement
Marginlending
for
stock
option
exercise