Estate PlanningA Map for Planned Giving

Terry D. Nelson, CFP®, ChFC®, CASL®, LUTCF507-281-12623428 Lakeridge Pl. Suite 120Rochester, MN 55901

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Will

●Sum

●Percentage

●Direct to a particular purpose

●Residual value after estate expenses and specific bequests have been paid

●Your assets still remain in your control

●Can modify gift to address changing circumstances

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Donor Advised Fund

Charitable savings account

Maintained and operated by a 501(c)(3) non-profit organization

Irrevocable contribution of personal assets

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Donor Advised Fund

Ability to process appreciated securities (property) at which the

donor does not have to pay capital gains tax

Contribution invested and grows tax free

The donor can recommend grants to qualified charities anytimeSecurities & Advisory business offered through Geneos Wealth Management, Inc.

Member FINRA/SIPC

Charitable Remainder Annuity Trust (CRAT)

Funding a trust with appreciated assets allows the trust to sell the assets without incurring a capital gains tax (many would pay 15% to 20% tax)

The income stream must represent at least 5% of the corpus each year

The recipient receives an income tax deduction from the present value of the remainder interest

Irrevocable for charitable purpose

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance

Three parties to a life insurance policy:

Owner

Insured

BeneficiarySecurities & Advisory business offered through Geneos Wealth Management, Inc.

Member FINRA/SIPC

Life Insurance

1. Beneficiary

●Name a charity as the primary or contingent beneficiary of an existing or new life insurance policy

●Will not receive a tax deduction

●Retain ownershipSecurities & Advisory business offered through Geneos Wealth Management, Inc.

Member FINRA/SIPC

Life Insurance

2. Existing policy

●Owner makes an absolute assignment (gift) of a life insurance policy currently owned and continues to pay annual premiums.

●Each of these premiums are tax deductible

●Will receive an income tax deduction equal to the lesser of the cash value in the policy or the total premiums paid.Securities & Advisory business offered through Geneos Wealth Management, Inc.

Member FINRA/SIPC

Life Insurance

3. New policy

● You as the insured could donate a new life insurance policy or have the charity purchase life insurance on your life and pay annual premiums.

● Each of these premiums would be allowed a current tax deduction

● Through a relatively small annual cost (the premium), a benefit far in excess of what would otherwise would be possible can be provided to charity.

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance

4. Insurance for replacement of a gift

● Probably the greatest increase in using life insurance in charitable plans has been to replace for heirs of an estate a value being given.

● Donate appreciated property

● Gift is irrevocable

● Bypass capital gainsSecurities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Life Insurance

4. Insurance for replacement of a gift

●Large tax deduction

●Property donated is gone no longer going to the estate

●Purchase life insurance with tax savings

Securities & Advisory business offered through Geneos Wealth Management, Inc.Member FINRA/SIPC

Works Cited1. States that Allow Transfer-On-Death Deeds for Real Estate. www.nolo.com. Nolo, Mary Randolph, J.D. Web. April 22, 2015.

2. Types of Gift Annuities. http://www.acga-web.org/. American Council on Gift Annuities, 30 June 2011. Web. April 22, 2015.

3. Charitable giving with life insurance: 4 fall planning ideas. www.lifehealthpro.com. Brett Berg, Web. October 15, 2016

Estate PlanningA Map for Planned Giving

Terry D. Nelson, CFP®, ChFC®, CASL®, LUTCF507-281-12623428 Lakeridge Pl. Suite 120Rochester, MN 55901

The information presented is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources

believed to be accurate. All estate and financial planning strategies involve risk. There is no assurance that any strategy suggested will be successful. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security,

advisory or insurance product.