Welcome to the Financial and Estate Planning Council of Metro Detroit Charitable Remainder Trust

1
Welcome to the Financial and Estate Planning
Council of Metro Detroit Charitable Remainder
Trust

• Presented by
• Michael W. Halloran, AEP, CLU, ChFC, CFP
• November 1, 2011

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Mechanics of a CRT

• Fixed Payment
• Future Contributions

• Annuity Trust

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Mechanics

• Percentage of payment
• Future contributions

• Unitrust

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Mechanics

• Termination of Trust

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Advantages

• Charitable Gift
• Tax Deduction
• Estate Consequences

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Tax Consequences
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Income Tax at Formation
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Taxation on income distributions

• Ordinary income
• Capital gains
• Tax-exempt income
• Corpus

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Gift tax

• Income interest in non-charitable beneficiary.
• Annual exclusion and marital deduction.
• Charitable deduction for present value of
  remainder interest.

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Estate Tax

• Inclusion
• Deduction

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Common Features

• Irrevocable
• B) Distributions Frequency
• C) Sprinkle provisions
• D) Expiration of Trust
• E) Lives and years
• Living individuals
• Duration

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Payouts

• Minimum
• Maximum

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Remainder Interest Rules
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Wealth Replacement Ideas

• Life Insurance
• Individual Life Insurance
• Joint and Last to Die Life Insurance