are your clients taking advantage of the best zero tax planning tools? zero tax planning presented...

Are Your Clients Taking Advantage of the Best Zero Tax

Planning Tools?

Zero Tax PlanningZero Tax PlanningPresented By: Tim Voorhees, JD, MBA

695 Town Center Drive | 7th Floor | Costa Mesa, CA 92626

Tel: 800.447.7090 | Fax: 866.447.7090

[email protected] | www.vfos.com

© January, 2013, Voorhees Intellectual Property LLC1

34 years of experience developing and implementing Zero Tax Plans.

President of the Registered Investment Advisory firm at Voorhees Family Office Services.com and the managing partner of its affiliated tax law firm, Matsen Voorhees LLP

JD - Southern Methodist University - Corporate & Estate Planning Law; MBA - Arizona State University - Finance & Accounting

Authored two books. Published in Estate Planning Magazine, the Journal of Practical Estate Planning, Insurance News, the elite advisor website of Financial Planning Magazine, and other leading publications.

Instructs at Best Tools Workshops for advisers interested in learning how to integrate the most effective zero tax planning tools into financial and estate plans. He also conducts Best Practices Workshops for advisers who seek to integrate advanced Wealth Counseling technologies into their practices

Speaks at national conferences of the National Network of Estate Planning Attorneys, ALI-ABA, Kingdom Advisors, the Southern California Tax & Estate Planning Forum, etc. He has also presented at annual conferences for numerous financial advisory firms.

Provides mediation and arbitration services as a Certified Christian Conciliator™

Leads teams that have developed hundreds of Family Wealth Blueprints® for high net worth clients

Timothy L. VoorheesTimothy L. VoorheesDesigned and Implemented Hundreds of Zero Tax PlansDesigned and Implemented Hundreds of Zero Tax Plans


7 Highly Practical Topics7 Highly Practical Topics

1. Why Public Policy Promotes Zero Tax Planning 2. Why Zero Tax Planning Is More Attractive

Than Ever3. Why Everyone Needs a Plan With Integrated

Financial and Tax Solutions 4. Why Most Clients Prefer to Start With a

Tactical Plan 5. Which Deliverables Are Best 6. How to Establish a Process7. How to Communicate the Message

3 © January, 2013, Voorhees Intellectual Property LLC

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#1 Why Public Policy Promotes

Zero Tax Planning

© January, 2013, Voorhees Intellectual Property LLC

…. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, however, I drive the extra mile and drive outside the city of Washington, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing a useful social service by doing so. For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.” --U.S. Supreme Court Justice Louis D. Brandeis


Synergistically Combine Charitable and

Non-Charitable Tools• Convert involuntary philanthropy into

voluntary philanthropy• Integrate complementary tools• Low-interest loans• Charitable gifts• Discounting• Life insurance


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Free Book

!

#2 Why Zero Tax Planning Is

More Attractive Than Ever

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Key ConceptsKey Concepts

Clients can choose voluntary versus involuntary philanthropy

Clients can control 100% of their wealth Estate tax is easily eliminated when

combining charitable and non-charitable planning tools

Income, capital gains, IRD, and other taxes can be discounted and/or deferred by integrating charitable and other wealth transfer tools

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Advantages to ClientsAdvantages to Clients

Addresses personal and family needs

Reduces complexity

Maintains more family control over wealth

Increases opportunity and means to pursue

Family values Family unity Community improvement

Reduces taxes

Integrates with Values-Based Planning

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www.WhyPlanNow.infowww.WhyPlanNow.info

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• See 10 reasons why clients should plan now.

• Exploit new opportunities to move assets to irrevocable trusts


Implement More TrustsImplement More Trusts

• Learn ways to super-charge trust strategies • Use web-based software to produce

customized client illustrations • Present marketing materials for business

owners, retired couples, and elderly clients• Serve attorney referral sources more

effectively• Provide trust funding services to attorneys• Position yourself as the quarterback on every

case


#3 Why Everyone Needs a Plan With Integrated

Financial and Tax Solutions

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8,000,000+ MillionairesServed by Financial Planners

800,000+ Deci-MillionairesServed by MFOs

80,000+ Centi-Millionaires

Served by MFOs &

SFOs

$10,000,000+ Net Worth = Deci-millionaire

$100,000,000+ Net Worth = Centi-millionaire

MFO = Multi-Family Office

SFO = Single Family Office

900+ BillionairesServed by

SFOs


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#4 Why Most Clients Prefer to

Start With a Tactical Plan

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Popular Strategies in 2012Popular Strategies in 2012

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Dynasty Trust

Insurance as an Asset Class

ESOPs

Insurance Trust Review

Premium Financing

Pension Rescue

Tax-Efficient Buy-Sells

Annuity Income Maximization

IRA Maximizer

Sale of Partnership Interests to a Family

Grantor Trust

Financed Indexed UL

Annuity Arbitrage

Private Split Dollar

Zero Tax Estate Planning

Spousal Lifetime Access Trusts

Intellectual Property Strategy

Qualified Money Conversion

Defined Benefit Combo

Equity Appreciation Sharing

Cost Segregation Study

Captive Insurance Company

Tax-Efficient Squeeze Freeze


Illustrate Advanced Trust Illustrate Advanced Trust Design Techniques Design Techniques

A) Annuity Arbitrage. Transfer extra wealth to heirs tax-efficiently

B) Leveraged ILIT. Facilitate the tax-efficient funding of premium financing strategies

C) IDIT with Insurance. Monitor cash flows and inheritance amounts year-to-year

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A) Annuity ArbitrageA) Annuity Arbitrage

TAX ADVICE DISCLOSURETo ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

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$1 Million Annuity or IRA Value


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How Does Annuity Income Maximization For Deferred

Annuities Work?

How Do The Scenarios How Do The Scenarios Compare?Compare?

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Who Should Consider This Who Should Consider This Idea?Idea?

Individuals age 65-80 in fair health or better

Confident of adequate retirement income from other sources

Adequate personal liquidity Desire to preserve estate for family Willingness to initiate transfers now Suitable assets

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B) Leveraged ILITB) Leveraged ILIT

TAX ADVICE DISCLOSURE

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein

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How Does Premium Financing Work?

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Insurance Funding For Insurance Funding For Large Illiquid EstatesLarge Illiquid Estates

The ChallengeMany affluent individuals would like to acquire life insurance for estate planning but face significant obstacles.Their assets are illiquidIf sold a capital gain tax would be dueIf gifted a gift tax would be dueThey believe their strategic assets would be better if left at work

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Double Taxation Of Traditional Double Taxation Of Traditional Premium Payments Premium Payments

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SolutionSolution

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How Does Premium Financing How Does Premium Financing Work?Work?

Case HistoryCase History

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Assumptions SummaryAssumptions Summary

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Internal Rates Of Return At Internal Rates Of Return At DeathDeath

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Who Should Consider This Who Should Consider This Idea?Idea?

Individuals age 50-85 Average to good health Net worth $10 million or more Desire to acquire insurance coverage now but

current cash flow and/or annual gifting capacity is limited

Desire to maintain long position in assets with significant growth and/or income potential

Sophisticated investor comfortable knowledge about the benefits and risks of leverage

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BenefitsBenefits

Increase benefits to family Enhance estate liquidity Acquire insurance coverage now without

need to liquidate assets or allocate significant and immediate cash flow

Keep strategic assets at work longer

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C) Dynasty TrustC) Dynasty Trust

TAX ADVICE DISCLOSURE

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

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How Does The Dynasty Trust How Does The Dynasty Trust Work?Work?

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Goals And ObjectivesGoals And Objectives

1. Find ways to pass more wealth to our heirs during our lifetime without incurring gift taxes. We are currently gifting as much as we can annually to an Insurance Trust.

2. Maximize inheritance to heirs. We would consider additional insurance if we could find a way to own the insurance outside of our estate.

3. Reduce or eliminate gift and estate taxes.

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Comparison Of BenefitsComparison Of BenefitsDollars in MillionsDollars in Millions

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IDIT Strategy AdvantageIDIT Strategy Advantage

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Comparison Of Benefits To Heirs Comparison Of Benefits To Heirs By YearBy Year

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Installment Sale To IDITInstallment Sale To IDIT

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#5 Which Deliverables Are Best

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Summarize the Value Summarize the Value PropositionPropositionSample Diagram

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CurrentCurrent ProposedProposed

Estate Taxes $14,300,000 $100,000

Benefit to Heirs $15,200,000 $18,900,000

Income Tax Savings

$0 $200,000

Benefit to Charity $0 $21,300,000

Example:


Clarify RolesClarify Roles

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Offer Services Linked to Offer Services Linked to DeliverablesDeliverables

#6 How to Establish a Process #6 How to Establish a Process for:for:

Delivering value during each engagement phase

Generating More Fee Income• Implementing More Investment and

Insurance Cases• Documenting More Gifts for

Charities• Consistently Collecting More Positive

Client Satisfaction Surveys

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Hi-Tech, Hi-Touch Hi-Tech, Hi-Touch Cornerstones See Cornerstones See

www.vDashboard.infowww.vDashboard.info

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Training/Coaching

Marketing

Planning/Production Tools

Administrative Workflows

Business Plan


#7 How to Communicate the #7 How to Communicate the Message Message

Estate tax practitioners need to know how to build the following concepts into estate plans:• Income tax plans• Business transition plans• Business formation design/drafting• Asset protection• Will contest prevention• Legacy planning to equip heirs• Trust planning• Special needs trust design/planning

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What Kind of Client is Suitable What Kind of Client is Suitable for for ImplementingImplementing the the

Concepts?Concepts?

Has a potential estate or IRD tax liability at death

Has excessive income or capital gains taxes now

Is moderately or very charitably inclined

Is willing to begin transferring some wealth now

Cares about what will happen after he or she dies

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Strategy Flyers, Case Studies, Strategy Flyers, Case Studies, Sample Plans, and BooksSample Plans, and Books

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Benefits to AdvisersBenefits to Advisers

Differentiates you in the market

Attractive to higher net worth clients

Creative

Simple

New fee-based design opportunities

New document drafting opportunities

New trust funding opportunities

New referral opportunities

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7 Highly Practical Topics7 Highly Practical Topics

#1 Why Public Policy Promotes Zero Tax Planning #2 Why Zero Tax Planning Is More Attractive Than Ever#3 Why Everyone Needs a Plan With Integrated Financial and Tax Solutions #4 Why Most Clients Prefer to Start with a Tactical Plan #5 Which Deliverables Are Best #6 How to Establish a Process#7 How to Communicate the Message

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Information Available: Information Available:

• www.ZeroTaxCounsel.com – All• www.FamilyOfficeCounsel.com – Advisers

and Attorneys• www.WealthCoCounsel.com – Attorneys• www.WebinarCounsel.com – Advisers and

Attorneys

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Free WebinarsFree WebinarsEmail Email [email protected] for links to for links to

recordingsrecordings

•8 Essential Steps Every Estate Planning Lawyer and Financial Adviser Must Navigate to Close Big Cases – Feb•Integrating Zero-Tax and Values-Based Planning – March•Funding Insurance with Pre-Tax Dollars - April•Using Insurance to Fund More Tax-Efficient Lifetime Income – May

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For Webinar Dates and Recordings, Call 1-800-447-7090 or email [email protected]

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Free Zero Tax Planning BookFree Zero Tax Planning Book

Buy on Kindle and email your receipt to [email protected] for reimbursement

Email your address to [email protected] to have us send you a hard copy with a 2013 addendum

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Free Reflecting God’s Free Reflecting God’s Character BookCharacter Book

Download from www.Legacies.info

Thank You!Thank You!

Zero Tax PlanningZero Tax PlanningPresented By: Tim Voorhees, JD, MBA

695 Town Center Drive | 7th Floor | Costa Mesa, CA 92626

Toll Free: 888-WSC-FIRM (972.3476) |Tel: 800.447.7090 | Fax: 866.447.7090

[email protected] | www.WealthStrategiesCounsel.com


DisclaimerDisclaimer

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Family Office Services, Inc. and Matsen Voorhees LLP do not give tax, accounting, regulatory, or legal advice to its clients unless clients have a current engagement defined in a signed retainer agreement. Clients must consult with advisers regarding the tax, accounting, and legal implications of these proposed strategies before any strategy is implemented. The effectiveness of any of the strategies described will depend on a client’s individual situation and on a number of complex factors. Nothing in this presentation is intended to offer securities or investment advice. Any discussion in this presentation relating to tax, accounting, regulatory, or legal matters is based on our understanding as of the date of this presentation. Rules in these areas are constantly changing and are open to varying interpretations.

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