Creative Wealth Preservation Techniques

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VINSON HALL ESTATE AND CHARITABLE
PLANNING SEPTEMBER 22, 2015
2013 VADA Family Convention Greenbrier
By John P. Dedon 1775 Wiehle Avenue, Suite
400 Reston, Virginia 20190 (703)
218-2131 John.Dedon_at_ofplaw.com
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Estate Tax
American Taxpayer Relief Act of 2012
Exemption Amount
Year
2013 Forward
5 Million gift and estate exemption 40 tax
rate Presidents Proposal Reversion to 2009
45 rate 3.5 M exemption beginning in 2018
Permanent?
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Planning for the Couple with Assets under 10.5
Million

• Focus on asset management and income tax planning
• Trusts to protect and manage inheritance
• Income tax planning may be more important than
  transfer tax planning

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TAKE CARE OF BASICS

• Wills
• Revocable Living Trusts
• Advanced Medical Directives (Living Wills)
• Powers of Attorney

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Other Fundamental Planning Issues

• Children with creditor, financial, or marital
  problems
• Children from a previous marriage and second
  spouse
• Children with special needs (parents)
• Spouse who would need help managing and investing
  funds now or later

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Charitable Advantages

• Satisfy Your Charitable Objectives
• Income Tax Deduction
• Avoid Estate Tax Entirely
• Avoid Capital Gains Tax Entirely
• Control Assets During Your Lifetime For
  Charity
• Allow Your Children to Control Assets Upon
• Your Death For Charity

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Charitable Remainder Trusts
Two Types _____________________ Unitrust and
Annuity Trust
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Example of Charitable Remainder Annuity Trust
STOCK REAL ESTATE
961,874 (Basis 119,874)
(No Capital Gain)
Charity 257,000 (assumes 6 Growth)
5 Year
Income Tax Deduction 101,224
Annuity 183,000
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Private Foundation vs. Donor Advised
Fund Or Community Foundation
Advantages/Disadvantages