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:__________________________
Advisors 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%)
Assets market value $____________. Assets Adjusted Basis $_____________. Assets % 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? _____________________________
Clients risk tolerance _________. Clients 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? ____
Clients % annual inflation rate (CPI) or COLA assumptions ____%
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