end-of-year tax strategies
DESCRIPTION
End-of-Year Tax Strategies. James Hahn Vice President, Sales. End-of-Year Tax Strategies. Victor Sanchez, MBA, CLU Assistant Vice President. 2011 Tax Rates???. 2011?. UNCERTAINTY. What a Difference a Year May Make. - PowerPoint PPT PresentationTRANSCRIPT
Kick-Off to Sales
For producer use only. Not for client presentation.
End-of-Year Tax Strategies
Kick-Off to Sales
For producer use only. Not for client presentation.
James HahnVice President, Sales
Kick-Off to Sales
For producer use only. Not for client presentation.
Victor Sanchez, MBA, CLUAssistant Vice President
End-of-Year Tax Strategies
For producer use only. Not for client presentation.
2011?
2011 Tax Rates???
UNCERTAINTY.
For producer use only. Not for client presentation.
What a Difference a Year May Make
Income Taxes* Current tax brackets of
10%, 15%, 25%, 28%, 33%, and 35% in 2010
Returns to pre-Bush tax rates brackets of 15%, 28%, 31%, 36%, and 39.6% in 2011
Capital gains taxed at 15% in 2010, increases to 20% in 2011
*Congress and President are near compromise on preserving Bush tax cuts for two years.
For producer use only. Not for client presentation.
Qualified Plans
There is still time to implement a qualified plan Must be implemented by 12/31/2010
Documents must be signed
Funding by 2011 tax-filing deadline
For producer use only. Not for client presentation.
Charitable Gifts
Charitable gifts can be made before the year ends Gifts of cash, life insurance or stock Significant tax savings Lead to discussion of other planning options
For producer use only. Not for client presentation.
What a Difference a Year May Make
If Bush tax changes are allowed to lapse*
Estate Tax – jumps from 0% in 2010, to 55% in 2011
Exemption – returns to pre-Bush amount of $1 million
(or $2 million for couples)
Gift Tax – top rate jumps from 35% in 2010, to 55% in 2011
* Congress and President are near compromise on preserving Bush tax cuts for two years.
For producer use only. Not for client presentation.
TransACE Survivor® Guarantees
Flexibility
Control
Prepare for the Unexpected
For producer use only. Not for client presentation.
2010201120122013201420152016
Design for Flexibility
For producer use only. Not for client presentation.
Design for flexibility
TransACE Survivor® Estate Protection Rider
For producer use only. Not for client presentation.
TransACE Survivor®
1 69 $82,402 $2,500,000
2 70 $82,402 $2,500,000
3 71 $82,402 $2,500,000
4 72 $82,402 $2,500,000
Male / Female age 68, Preferred Nonsmokers*
Yr Age Annual Premium
Death Benefit
5 73 $82,402 $2,500,000 $82,778 $2,500,000
With Estate Protection Rider
$82,778 $5,000,000
$82,778 $5,000,000
$82,778 $5,000,000
$82,778 $5,000,000
Annual Premium
Death Benefit
*Based on a 10 Pay Lifetime Guarantee Scenario
For producer use only. Not for client presentation.
Design for flexibility
TransACE Survivor® Honeymoon Provision
For producer use only. Not for client presentation.
TransACE Survivor®
1 69 $0 $111,388 $5,000,000
Year Age
Surrender Value
Accumulation
ValueDeath
Benefit
2 70 $94,888 $229,037 $5,000,000
3 71 $226,509 $351,309 $5,000,000
4 72 $364,436 $478,336 $5,000,0005 73 $507,272 $610,221 $5,000,000
Honeymoon Provision
Waives surrender charges for a full surrender during the first 5 years
*10 Pay Lifetime Guarantee Scenario with an Annual Premium of $164,567. Values shown are based on guaranteed interest and charges
Male / Female age 68, Preferred Nonsmokers*
For producer use only. Not for client presentation.
Design for flexibility
TransACE Survivor® Surrender Penalty Deferral Endorsement
For producer use only. Not for client presentation.
Total Premiums Paid
Design for flexibility.Reduce Death BenefitYears Death Benefit Annual Premium
1 thru 5 $5,000,000 $822,835
1 thru 5 $5,000,000 $ 164,567
6 thru 10 $2,500,000 $19,475
11 thru 33 $2,500,000 $ -----------
Policy guaranteed for life
TransACE Survivor® Male / Female age 68, Preferred Nonsmokers*
6 thru 10 $2,500,000 $920,210
For producer use only. Not for client presentation.
Design for flexibility
TransACE Survivor® Enhanced Surrender Value Endorsement
For producer use only. Not for client presentation.
TransACE Survivor®
10 78 $1,481,103 $1,645,670 $5,000,000
Year AgeEnhanced
Surrender ValueCumulative Premiums Death Benefit
15 83 $1,645,670 $1,645,670 $5,000,000
Enhanced Surrender Value Endorsement
*10 Pay Lifetime Guarantee Scenario with an Annual Premium of $164,567
90% of premiums at the 10th anniversary
100% of premiums at the 15th anniversary
Male / Female age 68, Preferred Nonsmokers*
For producer use only. Not for client presentation.
Enhanced Surrender Value Endorsement
No caps on face amount
No restrictions on age or underwriting status. TransACE Survivor allows for one uninsurable with a 12-month life expectancy.
Available at no additional cost
For producer use only. Not for client presentation.
Estate Planning
Legacy Planning
Does the Estate Tax Matter?
For producer use only. Not for client presentation.
Potential Prospects for Legacy Planning
Age: 45+
Net worth: at least $2 Million
Children from a previous marriage
Family member with special needs
Family business or privately held company
Charitable inclination
For producer use only. Not for client presentation.
Control
A Trust Alternative
For clients who: Don’t want to deal with trust documents
Can’t find a suitable trustee
Won’t have an estate tax liability
For producer use only. Not for client presentation.
5 – 25 years $10,000 min. $10,000 min.
Guaranteed Monthly Income Stream
Initial Lump Sum
Back-EndLump Sum
Income Protection Option
For producer use only. Not for client presentation.
Year End Highlights
TransSecurity
Underwriting Enhancements
Foreign Nationals
Cash Balance Plans
Premium Finance
For producer use only. Not for client presentation.
This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.
TransACE Survivor® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. 1-12111108 (CVAT), Group Certificate No. 2-72136108 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.
Transamerica Insurance & Investment Group (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.
Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.
Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of December 2010.
Kick-Off to Sales
For producer use only. Not for client presentation.
OLA 2055 L 1210
End-of-Year Tax Strategies