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CHCapitalPartnersLLC

Knowwhoyouareworkingwith StrivingtoeducateandconsultSmallBusinessandMiddleMarketstohelpcreatejobsfor ourfellowAmericans

EstatePlanning By
SokH.CordellSr.ManagingDirector

WhatisEstatePlanning? Anongoingprocess Transferandmanagementofassets Careandsupportofdependents Accordingtoyourwishes

SpecificConcerns Transferringpropertyintact Arrangingforcare/supportofdependents Avoidingdisputesamongsurvivors Avoidingintestacy(dyingwithoutawill) Minimizingtheprobateprocess Minimizinggiftandestatetaxes Arrangingforphilanthropicconsiderations

Wills Awill: Identifiesheirs Identifiesexecutor Identifiesguardianforminorchildren Mayminimizesettlementcostandestatetaxes

TransferringProperty

CareandSupportofDependents Identifyasuitableguardian Arrangeforfinancialsupport Documentyourintentions Secureresponsiblemanagement Appointprofessionaltrustee(s)

AvoidingDisputes Objective,professionaltrustee Durablepowerofattorney Livingwill(righttodie) Livingtrust(assetdistribution) Controlwhileyoustillcan

DyingWithoutaWill Ajudgewillappointthe Administratorofyourestate Guardian(s)ofyourchildren Administratorwilloverseethe Settlementofyourestate Dispositionofyourassets

TheProbateProcess

Avoidprocessby establishingaTRUST

Expensiveand timeconsuming

Settleestateand distributeassets

Withorwithouta will:Probate

Reviewfor authenticityand legality

Gift&EstateTaxes Intheabsenceofplanningpriortodeath,youmayhaveanunintendedheir:Uncle Sam

Gift&EstateTaxes Alltransfersduringlifeoratdeatharetaxed Annualgifttaxexclusion Lifetimeexemptionamount:

$1,000,000duringlife $1,000,000atdeathtoindexupwards
UnlimitedCharitableDeduction UnlimitedMaritalDeduction

PhilanthropicConsiderations Combinecharitywithtaxandestateplanning: Fundaworthycause Obtainspecialtaxadvantages

IncomeTaxAdvantages EstateTaxAdvantages
Establishacharitabletrust

UnlimitedMartialDeduction Notaxtransferstospouse MostuseAlltoSpousewill

Highlyinefficient Taxedonseconddeath
Wastedunifiedtaxcredit

TheHospitalityOwnerStory Diedunexpectedlyatage59 HospitalityEnterprisevaluedat$150million Childrenfacedaninheritancetaxof55%

[It]couldhavebeenthe endofourcompany.
HospitalityOwner

DisinheritUncleSam

EstateTaxesin2013
ESTATEVALUE AMOUNTOFTAX RATEONEXCESS

$500,000$750,000 $750,000$1,000,000 $1,000,000$1,250,000 $1,250,000$1,500,000 $1,500,000$2,000,000 $2,000,000$2,500,000 $2,500,000$3,000,000

$155,800 248,300 345,800 448,300 555,800 780,800 1,025,800

37 % 39 41 43 45 49 53

DisinheritUncleSam Unlimitedmaritaldeduction:Propertymaytransfertaxfreetosurviving spouse Gifting:Helpsreducethesizeofyourestate,solessistaxed Federalestatetaxexclusion:$1,000,000in2002and2003 Bypasstrust:Helpspreservetheestatetaxexclusionforbothspouses

WhatMethodsAreAvailable? AssetFreezingandgiftingtechnique LLC,LLPandFLP GRAT GRUT QPRT CRAT CRUT

EstateProvisions Startingin2010: CarryOverCostBasisRuleswillbeineffect.

InheritedpropertynolongerreceivesastepupinCostBasis. CarryOverBasiswillbetheLOWERofcostbasistothe deceasedorthefairmarketvalueonthedateofdeath.


OneTimeBasisAdjustment

$1,300,000stepupforheirs $3,000,000stepupforSurvivingSpouse Basisinpropertycannotbeadjustedaboveitsdateofdeath value.

CaseStudy:AllToMySpouse JohnandJaneAffluent $3,000,000combinedtaxableestate Johndiesfirst Calculationarefor2002

CaseStudy:AllToMySpouse

UsingUnlimitedMaritalDeductionAndUnifiedTaxCredit
John $1.5Million ViaUnlimited MaritalDeduction JanesNewEstate Value:$3M TentativeEstateTax $1,275,800 NetEstateTaxDue $930,000
ForIllustrativepurposesonly.Individualresultswillvary.

Jane $1.5Million

UnifiedTaxCredit $345,800

EstatePlanningSolutions:Trusts Legaldevicetotransferassets Nameatrusteetoadminister Privacyandprotection Minimizeprobateprocess Professionalassetmanagement

UnifiedCredit(Family)Trust Directs$1,000,000intotrust(for2002) Estatetaxoffsetbyunifiedcredit Trustisseparatetaxentity Survivingspousemayreceiveincome Decedentdesignatesbeneficiaries

MaritalTrust Fundedondeathoffirstspouse Noestatetaxdueonfirstdeath Survivingspousemustreceiveincome Accesstoprincipal/namebeneficiaries Noprobateorothercourtproceedings

CaseStudy:AllToMySpouse

UsingUnifiedCreditTrustandMaritalTrust
John $1.5Million UnifiedCreditTrust $1,000,000
Noestatetaxdue

Jane $1.5Million MaritalTrust $500,000


Noestatetaxduenow

UseofUnifiedCredit $345,800

JanesNewEstate Value:$2M TentativeEstateTax $780,000 UnifiedTaxCredit $345,800 TotalTaxesDue $435,000

ForIllustrativepurposesonly.Individualresultswillvary.

QTIPTrust QualifiedTerminableInterestPropertyTrust VariationofMaritalTrust Protectassetsforfinalheirs Mustprovideincometospouse Grantordesignatesbeneficiaries

IrrevocableLifeInsuranceTrust Liquidityandtaxreduction

Whentaxesareinevitable Cashpaymentinninemonths Preventforcedsaleofassets

CaseStudy:AllToMySpouse

IrrevocableLifeInsuranceTrust
John $1.5Million Jane $1.5Million JohnandJane GiftofPremium

UnifiedCreditTrust $1,000,000
Noestatetaxdue

MaritalTrust $500,000
Noestatetaxduenow

JanesNewEstate Value:$2M EstateTaxDue $435,000


ForIllustrativepurposesonly.Individualresultswillvary.

ToILITforLife InsurancePurchase
InsurancePolicy

LiquidityforTaxes

CharitableTrusts Charitableremainderunitrusts Charitableremainderannuitytrusts Pooledincomefunds Charitableleadtrusts

FundingOptions $435,000TaxBill Paythetaxesoutright Borrowthemoney Givelargesumstocharity EstablishanILIT

Cashduewithinninemonthsofdeath

ComparingSolutions

UnlimitedMaritalDeductionOnly

$930,000

UnifiedTaxandMaritalTrusts
$2,500

$435,000

ILIT

Totalestimatedpremiumfor$500,000SecondTo Diepolicyfor50yearoldcoupleingoodhealth.
ForIllustrativepurposesonly.Premiumswillvary.

EstatePlanning:WhyCHCapitalPartnersLLC? Thoughtfulplanning. Thesuccessfultransferofwealthtothenextgeneration dependsonthoughtfulplanningandpainstakingimplementationand administrationofyourplan. Fullbreadthofservices. AtCHCapitalPartners,wewillworkwithyoutodevelop acomprehensiveestateplan. Depthofexperience. CHCapitalPartnershashelpedthousandsofourclients developcomprehensiveestateplansthatprovidepeaceofmind. Teamwork.Becauseweprovideforyourdaytodayfinancialneeds,wehave accesstoresourcesandmuchofthefinancialinformationthatwillbeneededin thedevelopmentofyourplan.

EstatePlanning Weareexperiencedindealingwithallaspectsofestateplanningand willworkinconjunctionwithyourattorneytoguideyouthroughthe processtoensurethatyourplantakesintoconsiderationwhatis importanttoyou. Wecan: Workwithyoutouncoverallaspectsthatshouldbeconsideredinplanning yourestate. Recommendhowtrustscanbeusedtoaccomplishyourgoals. Employstrategiestomaximizeyourestateandminimizeestatetaxes. Seethatyourestateplanincludesdirectionsonfulfillingyourgoalsforyour familyandheirs,orforcharitablegiving. Assistyouindetermininganexecutororpersonalrepresentative.

EstateandTaxPlanning Withagoalofmaximizingyourestateandminimizingcomplications,wewill workcloselywithyouandyourattorneyortaxadvisor,inthedevelopmentofa planthattakesintoconsiderationallthefactorsthatmayaffectyourlegacy: Yourfamilysituation Yourfinancialsituation Taxlaw Thechoiceofanexecutorand/ortrustee(s)

EstatePlanningConsiderations Whendevelopinganestateplanforyou,wewillaskyoutocarefully considerseveralquestionsbeforebeginningtheprocess. Wewilldiscussthefollowing: Whoshouldinherityourassets? Wewillguideyouthroughthemaritalrightsissuesforyourstate Shouldyourchildrenshareequallyinyourestate? Doyouwishtoincludegrandchildrenorotherbeneficiaries? Wouldyouliketoleaveassetstocharity? Whenandhowshouldtheyinherittheassets?

EstatePlanningConsiderations Whichassetsshouldtheyinherit? Ifyouownabusiness,shouldthestockpassonlytochildrenactiveinthe business?Ifso,shouldtheotherchildrenbecompensatedwithotherassets? Ifyouownrentalproperties,shouldallbeneficiariesinheritthem?Dothey havetheabilitytomanageproperty?Whatarethecashneedsofthe beneficiaries?

Financial,EstateAndTaxPlanningServices Financialplanningprovidesanopportunitytoquantifyyourcurrent situationandtocreateaplantoachieveyourfinancialgoals. Wecanprovide: Modularplanningfocusedonaparticularneedsuchaseducationalfunding, retirementplanning,incometaxorestateplanning Acomprehensiveplanencompassingallaspectsofyourfinanciallife Solutionsareprovidedtobothindividualsandfamilies,andcloselyheldor familyownedbusinessowners.

Allestateplanningservicesareprovidedwiththeparticipationofyourpersonalattorney,whoshouldreviewallsuchmaterials.CHCapitalPartnersLLCdoesnotpreparewillsortrustdocuments.

RIAServices Youcanbenefitfromacomprehensiverangeoffullserviceordiscount brokeragesolutions:for$5MMandHigher Traditionalbrokerageproductsincludingstocktrading,fixedincometrading, mutualfunds,UITs,annuities,optionsandbrokeredcertificatesofdeposit. Mutualfundandseparateaccountwrapprograms. RetirementandeducationalfundingvehiclesincludingIRAs,RothIRAs,SEPs, 401(k)sand529Plans.

InsuranceServices Ourrangeofinsurancesolutionsincludes: Lifeinsurance:wholelife,universallife,variablelife,termandsecondtodie policies Propertyandcasualtyinsurance Grouphealthinsuranceandbenefits Disabilityincomeinsuranceforbothindividualsandgroups Longtermcare Nonqualifiedretirementplanning Businesssuccessionplanning Enhancedexecutivecompensation

TrustServices Wewillworkcloselywithyouandothermembersofyourteamto designtruststohelpmeetyourspecificobjectives. Solutionsinclude: Offshoretrusts Revocablelivingtrusts Fullservicerealestate Irrevocabletrusts investment Dynastytrusts managementservices,including Testamentarytrusts timberlandandnaturalresource Generationskippingtrusts management Irrevocablelifeinsurancetrusts Charitabletrusts (ILITs) LLCorFLP

CharitableServices Wecanhelpyoustructurephilanthropicsolutionstomeetyourcharitableneeds andtoalignwithyouroverallfinancialplan. Solutionsinclude: IndividualandFamilyConsulting Wealthstewardshipissues, practices&plans NotforProfitConsulting Spendingpolicies Investmentobjectivesetting Assetallocation Grantmakingpolicies

CharitableLeadTrusts CharitableRemainderTrusts InsuranceSolutions PrivateFoundations

CreditServices CHCapitalPartnersprovideslendingforallofyourfinancialneeds: Customizedcreditandstructureddebt Liquidityfinancing,includingsecuredandunsecuredloans,andassettransfer financingstrategies Mortgageandrealestatelending Professionalpracticelending Securitizedlendingfordiversificationandriskmanagement Marginlendingforstockoptionexercise