Estate Planning; A Map for Planned Giving

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Estate PlanningA Map for Planned GivingTerry D. Nelson, CFP, ChFC, CASL, LUTCF507-281-12623428 Lakeridge Pl. Suite 120Rochester, MN 55901

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

WillSumPercentageDirect to a particular purposeResidual value after estate expenses and specific bequests have been paidYour assets still remain in your controlCan modify gift to address changing circumstances

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Donor Advised FundCharitable savings accountMaintained and operated by a 501(c)(3) non-profit organizationIrrevocable contribution of personal assets

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Donor Advised FundAbility to process appreciated securities (property) at which the donor does not have to pay capital gains taxContribution invested and grows tax free The donor can recommend grants to qualified charities anytime

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Charitable Remainder Annuity Trust (CRAT)Funding a trust with appreciated assets allows the trust to sell the assets without incurring a capital gains tax (many would pay 15% to 20% tax)The income stream must represent at least 5% of the corpus each yearThe recipient receives an income tax deduction from the present value of the remainder interestIrrevocable for charitable purpose

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life InsuranceThree parties to a life insurance policy:OwnerInsuredBeneficiary

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance1. BeneficiaryName a charity as the primary or contingent beneficiary of an existing or new life insurance policyWill not receive a tax deductionRetain ownership

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance2. Existing policyOwner makes an absolute assignment (gift) of a life insurance policy currently owned and continues to pay annual premiums. Each of these premiums are tax deductible Will receive an income tax deduction equal to the lesser of the cash value in the policy or the total premiums paid.

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance3. New policyYou as the insured could donate a new life insurance policy or have the charity purchase life insurance on your life and pay annual premiums. Each of these premiums would be allowed a current tax deductionThrough a relatively small annual cost (the premium), a benefit far in excess of what would otherwise would be possible can be provided to charity.

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance4. Insurance for replacement of a giftProbably the greatest increase in using life insurance in charitable plans has been to replace for heirs of an estate a value being given.Donate appreciated propertyGift is irrevocableBypass capital gains

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance4. Insurance for replacement of a giftLarge tax deductionProperty donated is gone no longer going to the estatePurchase life insurance with tax savings

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Works Cited1. States that Allow Transfer-On-Death Deeds for Real Estate. www.nolo.com. Nolo, Mary Randolph, J.D. Web. April 22, 2015.2. Types of Gift Annuities. http://www.acga-web.org/. American Council on Gift Annuities, 30 June 2011. Web. April 22, 2015.3. Charitable giving with life insurance: 4 fall planning ideas. www.lifehealthpro.com. Brett Berg, Web. October 15, 2016

Estate PlanningA Map for Planned GivingTerry D. Nelson, CFP, ChFC, CASL, LUTCF507-281-12623428 Lakeridge Pl. Suite 120Rochester, MN 55901

The information presented is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. All estate and financial planning strategies involve risk. There is no assurance that any strategy suggested will be successful. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security, advisory or insurance product.

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