CRT Hypothetical Scenario for Your Estate

CRT Hypothetical Scenario for Your Estate

Develop a Scenario for Your Own CRT

Is a tax saving Charitable Remainder Trust a personal planning option?

There are new tools to regain control of your social capital. Complete the following information and fax it to us for a hypothetical and preliminary review.

  • Disinherit the IRS and Protect Your Business Assets
  • Control Personal Wealth and Empower Your Family
  • Minimize Unnecessary Tax and Expense
  • Create a Family Foundation and Preserve Influence Benefits for Your Heirs

This preliminary evaluation is being provided as an educational introduction to the benefits of a CRT in typical estate planning scenarios. Specific advice and implementation is the responsibility of your tax and legal advisors.

Hypothetical Estate Planning Alternatives for:__________________________

Advisor’s Fax / Phone #_______________________ or Address:____________________________

Hypothetical CRT Beneficiary ____________ Sex ___ DOB ______ Insurable as a standard risk nonsmoker? ____

Hypothetical Spouse_______________ Sex ___ DOB ______ Insurable as a standard risk nonsmoker? ____

(This information is to calculate whether or not a wealth replacement trust is a theoretical and economically viable option)

State of Residence for Client/Donor ___. Is this plan for a married couple? _____

Marginal Fed/State Income Tax Bracket ____%. Current Taxable Estate Value $___________________

(e.g. 20% federal and 3% state tax rate)>>><<<(Gross estate less debts and expenses)

Do clients have an ILIT (Irrevocable Life Insurance Trust) to shelter insurance proceeds? ________

Do clients have recently reviewed simple will, trust or existing estate plan? _______________

If married, have they preserved both available Applicable Exclusion Amounts (the old “Unified Credit”) with sheltering trusts? _________

(Credit Shelter Trusts, either living or testamentary from their legal advisor)

Has client already used the Lifetime Gifts in taxable lifetime gifts? ______________

(already given away part of the $1,000,000 allowed in 2005)

Is the Zero Estate Tax Plan a planning goal? ____________________________

Will the donor wish to add to this trust with gifts later? ___________________________

Are there significant qualified retirement or pension funds in estate? _________

Pension Account Value? ___________________. Beneficiary of Account? _____________________

Estate priorities for the clients? _________________________________________________

(e.g., heirs made whole, control, income, security or charity as their principal goals?)

Clients’ New Goals: ____% Assets to heirs, ____% Assets to IRS, ____% Assets to charity

If donors make use of Charitable Lead or Charitable Remainder Trusts, is there a specific philanthropy or family foundation in mind? ________

If so, what charities? ______________________________________

Type of asset under consideration for CRT evaluation _________________. % Annual pretax income it generates ____%

(e.g. farm land worth $760,000 with a basis of $100,000 earning 3.5% of its fair market value annually and appreciating 3%)

Asset’s market value $____________. Asset’s Adjusted Basis $_____________. Asset’s % Annual Appreciation ____%

Annual income needed from this asset? $__________. Is asset mortgaged? ____. How is it legally owned? _____________

(e.g. client needs $40,000 annually for retirement)>>><<<(joint with rights of survivorship, tenants in common, individually, etc.)

Is there any reason the client would not want more income from this asset? ________________

Does client/donor have a family business to pass down and preserve? _____________________________

Client’s risk tolerance _________. Client’s projected % annual appreciation in their estate ____%

Are clients using all of their annual exclusion gifting opportunities? _______________

Number of potential gift beneficiaries? _______

(right to gift up to $11,000 annually per donee to shift assets without tax to heirs)

Do clients want immediate income or deferred income?____________. Do clients need to control distribution timing? ____

Client’s % annual inflation rate (CPI) or COLA assumptions ____%

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