experience more
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2013 Tax Law. Experience More. Flow Chart of Sale. Experience More. Expenditure Model. Experience More. Benefits for Family Charity. Experience More. Contact Information. Joe Horner Private Wealth Management 3725 Champion Hill Drive, Suite 1300 Memphis, TN 38125 901-322-4213 - PowerPoint PPT PresentationTRANSCRIPT
Experience More
2013 Tax Law
Experience More
Flow Chart of Sale
Experience More
Expenditure Model
Experience More
Benefits for Family Charity
Contact Information
Joe HornerPrivate Wealth Management3725 Champion Hill Drive, Suite 1300Memphis, TN [email protected]
Charitable Giving with Life Insurance
• Simple and effective way to make a large income tax free gift at fraction of cost to person giving the gift
• In some cases, premiums paid can provide tax advantages to the person giving the gift.
• The legacy you can create will greatly benefit the organization with a larger gift than through a lump sum donation
• Allows organization possible flexibility of determining best use of funds to meet current and future needs
Lump Sum vs. Life Insurance
• *Example of gift through life insurance:– 55 year old male – preferred non tobacco rate– $25,000 lump sum payment into life policy– Tax free death benefit at issue of policy would be
$58,350– Policy earns tax deferred cash accumulation at
competitive interest rate– The person giving the gift may also elect to make the
charity the owner of the policy which will allow the charity to access the cash value of the policy if an immediate cash need arises.
• Lump sum payment of $25,000 to organization– No additional benefit beyond the original gift
*CVAT projection through Tennessee Farmers Life Insurance
Income Streams to Fund Life Insurance
• Annual premium payments into life policy– Same concept as before: same gift amount = increased
benefit• Interest payments from investment accounts
– Pay premiums while not affecting principal amount• If over age 70 ½, RMD payments
– After tax payments going into tax free death benefit to organization
• *Example of life policy with annual premium payments: – 55 year old male, preferred non tobacco rate– $2,500 annual premium – Death benefit from day one of $100,000– Same tax advantages to organization as before*UL projection through Tennessee Farmers Life Insurance
Giving Through Existing Life Policy
• The most simple way for guaranteed impact of large gift
• What need(s) were there at time policy was issued?
• Have your needs changed to make you think that the policy is no longer needed or needs to be reduced?
• Making the organization either full or partial beneficiary
• Tax free death benefit to the organization• Larger gift through life insurance than with lump
sum • Usually can be done with phone call or change
form
Why Life Insurance?
• Maximizing gift amount at smallest cost to you• Taking advantage of tax incentives while
benefiting the organization at highest possible level
• Be proud of what you give and know that it is important to the organization
• Family may want to consider doing the same thing even if on a different level of giving
• Comfort and security given to family before changing beneficiary on existing life policy
• Consider Life Insurance as part of giving
Investment advisory services offered through Securian Financial Services, Inc. Jeremy Jones is a Registered Representative of Securian Financial Services, Inc., Securities Dealer, Member FINRA/SIPC, and Registered Investment Advisors.
Shoemaker Financial is independently owned and operated.A04118-0910 DOFU 9-2010
Jeremy Jones, AIF
February 21, 2013
Financial Planning:Aligning Goals and Action
Financial Planning Can Help With…
•Developing an action plan for your goals•Aligning your financial decisions with your goals•Understanding how financial issues are interrelated
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A Good Financial Plan
• Based on the client’s individual situation and goals– Areas of focus depend on life stage
• Delivered in writing• Contains both analysis and recommendations
– Product and non-product based• Completed in partnership between advisor
and client• Will eventually be out-of-date
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Who is a Good Candidate for Planning?
• Someone who cares about others and their future• Life complexity – examples:
– Remarriage or blended family– Unmarried couple– Business owner or concentrated holding– Inheritance or trust beneficiary
• Life event – examples: – Within ten years of retirement– Job change– Death of loved one– Divorce/separation
• Active management of your financial life
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Financial Planning: What’s Included?
Financial advisors do not provide tax/legal advice. This information should not be considered specific tax or legal advice. You should consult your own tax/legal advisor about your own situation.
Contact Jeremy Jones:901-757-5757
http://financialpicture.com/ShoemakerFinancial/Box.html
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
Our Culture of Philanthropy A snapshot of our community
Memphis ranks second most generous urban area among the 50 largest metropolitan areas in the U.S. -- Chronicle of Philanthropy
Comparative figures:
United States: 4.7% given$2,564 / $54,783
Tennessee: 6.6% given$3,807 / $58,097
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
Source: The Sharpe Group 2013
Anatomy of a Gift
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
RELIGION
SOCIAL THEORY
TAX AND ECONOMIC BENEFITS
EMOTION
POLITICS
Source: The Sharpe Group 2013
Motivations and drivers of donative intent:
Why do people give?
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
Creating, Living and Leaving a Legacy
Creating a legacy:Who am I?Why am I here?
Living a legacy:What do you stand for?Who is important to you?What is truly important to you?What is life all about?
Leaving a legacy:What is your 100 year plan?How will you define success?What do you want to be remember for?What will your family say about you after you are gone?
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
Our Children and CharityRule #1: Do no harm
Rule #2: Include them
• Share with them your vision, values & dreams• Talk with them• Share what is important to you• Share why it is important to you
• Give them a way to participate• Ask them what is important to them• Ask them why?• Let them give some money away
• Consider formalizing your gifting strategies• Donor Advised Fund• Private Family Foundation
6070 Poplar Avenue, Suite 725 | Memphis, TN 38119 | 901-259-3345 | [email protected]
Contact Information:
Dan PattersonSilverleafe Capital Partners, LLC6070 Poplar Avenue, Suite 725Memphis, Tennessee [email protected]
The Clanlo Society
• Giving Society named in honor of the School’s first bequest donor and her family
• Membership is made of any parents and friends who have a confirmed bequest intention on file with the school
• Why Inform?• Changing Programs & Needs, Planning, and
Forecasting• Quarterly Newsletters• Annual Luncheon & Cocktail Event
Contact Information
Jay PhilpottDirector of AdvancementSt. George’s Independent School1880 Wolf River BlvdCollierville, TN [email protected] cell901-457-2014 office
