Visions Global Empowerment
BUSINESS OF GIVING
Why Give? •
Importance of doing/supporting charitable work: humanitarian needs are vast
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Tax breaks
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Avoid estate taxes and probate court
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Turn your charitable vision into a reality! • Start today & see benefits during your lifetime • Ensure your legacy in the future
Ways you can give to VISIONS 1. Monetary Donations: Cash, Direct Debit, PayPal 2. Whole Life Insurance 3. Appreciated Stocks 4. Properties 5. Sri Lanka Properties
Ways you can give to VISIONS, cont. 6. Sri Lanka Pensions 7. Grant Writing 8. “In Memory of…” 9. Family Foundations 10. Living Trusts 11. Charitable Trusts
Change Your Approach to Life •
You Be the Change
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Enlightenment & Awareness
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Philanthropic Forums
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Social Events for Service
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Fun & Fundraising
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Love All & Serve All
Estate Planning
UNDERSTANDING YOUR TAXES DURING YOUR LIFE TIME YOU PAY TAXES:
INCOME TAXES CAPITAL GAINS TAXES SALES/USE TAXES PROPERTY TAXES GIFT TAXES
UPON DEATH OF BOTH SPOUSES YOU PAY: ESTATE TAXES
Estate Planning WHAT: ANY ASSET BECOMES AN ESTATE UPON DEATH WHY: TO AVOID PROBATE AND SAVE TAXES WHEN: NOW
Probate Court PROBATE COURT: SPECIALIZED COURT THAT ONLY CONSIDERS CASES THAT DEAL WITH THE DISTRIBUTION OF DECEDENT’S ESTATE ANY INDIVIDUAL WHO HAS GENERALLY MORE THAN $100K IN ASSET VALUE WILL END UP IN PROBATE COURT UNLESS THEY HAVE CREATED THE FOLLOWING: 1. FAMILY LIVING TRUST 2. CHARITABLE PRIVATE FAMILY FOUNDATION 3. CHARITABLE REMAINDER TRUST AND/OR OTHER TRUSTS
Save Approx. 25% NOW BY CREATING A FAMILY LIVING TRUST AND/OR CHARITABLE FAMILY PRIVATE FOUNDATION YOU IMMEDIATELY SAVE APPROXIMATELY 25% OF YOUR ASSETS BY AVOIDING PROBATE COURT & LEGAL FEES
Living Will A LIVING WILL IS NOT A SUBSTITUTE FOR A FAMILY LIVING TRUST A LIVING WILL IS A COMPLEMENTARY DOCUMENT TO A FAMILY LIVING TRUST A LIVING WILL DOES NOT AVOID PROBATE COURT
Gift Tax Exclusions A GIFT HAS TO BE GIVEN BEFORE DEATH BY AN INDIVIDUAL OR FROM THEIR LIVING TRUST GIFT EXCLUSION IS $1 MILLION PER SPOUSE FOR 2009 THRU 2011 (DURING THEIR LIFE) GIFT CAN BE GIVEN TO MULTIPLE PEOPLE, BUT LIMITED TO $1 MILLION TOTAL FOR EACH SPOUSE
Estate Taxes Exclusions UPON DEATH OF BOTH SPOUSES, THE ESTATE WILL BE SUBJECT TO ESTATE TAXES OF: UP TO 45% IN 2009 (WITH AN EXCLUSION OF $3.5M) 0% in 2010 UP TO 45-55% (MOST LIKELY) IN 2011
ONE OF THE MANY TOOLS THAT IS AVAILABLE TO REDUCE ESTATE TAXES IS A CHARITABLE PRIVATE FAMILY FOUNDATION AS AN ALTERNATIVE, CONSIDER A CHARITABLE TRUST
Coping with Estate Taxes TO BUY LIFE INSURANCE FROM YOUR ASSETS IN THE TRUST TO PAY UP TO APPROX. 55% (CAN VARY) OF YOUR ESTATE (I.L.I.T.) TAXES. RETAIN APPROX. 45% (CAN VARY) OF YOUR ESTATE, OR RETAIN YOUR LIFE PROCEEDS AND DONATE YOUR ESTATE TO YOUR CHARITABLE PRIVATE FAMILY FOUNDATION AND PAY NO ESTATE TAXES.
A Possible Scenario ESTATE AFTER EXCLUSIONS=
$5M
ESTATE TAXES @45% =
$2.25M
LIFE INSURANCE PROCEEDS PAY ESTATE TAXES
$2.25M
NET PROCEEDS TO FAMILY
$ 5M
Charitable Family Foundation CHARITABLE FAMILY FOUNDATION CAN BECOME THE BENEFICIARY OF NET ASSETS IN EXCESS OF ESTATE TAX EXCLUSION, WITHOUT PAYING ESTATE TAXES. YOUR ADULT CHILDREN OR FAMILY MEMBERS OR ANOTHER “PERSON” (AS TRUSTEES OF THE CHARITABLE PRIVATE FAMILY FOUNDATION) CAN DISTRIBUTE ANNUALLY TO THE CHARITY(-IES) OF YOUR CHOICE.
Filing IRS Form 706 within 9 Months of Death ALL ASSETS PASS THRU TO THE SURVIVING SPOUSE UPON THE 1ST DEATH: FILE WITH IRS, NO ESTATE TAXES. UPON 2ND DEATH, ALL ASSETS PASS THRU TO BENEFICIARIES OF THE FAMILY LIVING TRUST: * FILE WITH IRS, PAY UP TO APPROX. 45-55% ESTATE TAXES ON THE VALUE OF ESTATE AFTER EXCLUSIONS (DEPENDS ON THE YEAR)
Save on Current Taxes through Business of Giving
DURING YOUR LIFETIME, TRANSFER ASSETS TO YOUR OWN CHARITABLE PRIVATE FAMILY FOUNDATION & SAVE ON INCOME TAX DOLLARS (CURRENT VALUE)
UPON DEATH, ASSETS TRANSFER TO YOUR OWN CHARITABLE FAMILY FOUNDATION & YOU SAVE ON ESTATE TAX DOLLARS
Public Charity DONATION TO A PUBLIC CHARITY: YOU RECEIVE A WRITE OFF ON YOUR AGI (ADJUSTED GROSS INCOME)-LINE 31, FORM 1040 CASH: 50% PROPERTY: 30%
Charitable Private Family Foundation DONATION TO A CHARITABLE PRIVATE FAMILY FOUNDATION: YOU RECEIVE A WRITE OFF ON YOUR AGI (LINE 31, FORM 1040) CASH: 30% APPRECIATED PROPERTY: 20%
Mission Fueled by Vision PUT YOUR CHARITABLE VISION TO WORK WITH CURRENT INCOME TAX DOLLARS. CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS
Contact VISIONS START TO MAKE YOUR VISION A REALITY TODAY: CONTACT US!
www.VisionsForTheFuture.org