Who We Are: Zuk Financial Group

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2 Who We Are: Zuk Financial Group Established in ,000+ Clients One of the Largest Independent Retirement Planning Firms to the Educational Community in California Securities and Advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Zuk Financial Group and NPC are separate and unrelated companies. 2

3 Feedback Card 3

4 What Is Estate Planning? 4

5 Estate Planning Is Life Planning 5

6 Estate Planning 1. Accumulation 2. Enjoyment 3. Preservation 4. Distribution 6

7 Basic Estate Planning Common Estate Planning PROBLEMS! 7

8 Many People Die Without Having A Will 8

9 Problems With Probate 9

10 A Will Does Not Avoid Probate 10

11 What A Will Can Not Do 1. Avoid probate. 2. Distribute non-probate assets. 3. Change statutory rights. A will cannot be used to disinherit a spouse, unless the spouse consents. 11

12 Interest In Real Property Joint Tenancy Tenancy in Common Separate vs. Community Property 12

13 Problems of Joint Tenancy Loss of Asset Liability Exposure Capital Gains Tax Liability 13

14 The Federal Estate Tax 9 months to pay Pay in Cash! 14

15 Federal Estate Tax Rates From To Tax Rate on Excess $500,000 $750,000 $155,800 37% $750,000 $1,000,000 $248,300 39% $1,000,000 $1,250,000 $348,800 41% $1,250,000 $1,500,000 $448,300 43% $1,500,000 Unlimited $555,800 45% As of 6/4/08. Tax law and rates subject to change. 15

16 Estate Tax Exclusion Year Exclusion Credit 2005 $ 1,500,000 $ 555, $ 2,000,000 $ 780, $ 2,000,000 $ 780, $ 2,000,000 $ 780, $ 3,500,000 $ 1,455, NO TAX Tax law and rates subject to change. 16

17 Sample Calculation Taxable Estate Value $ 2,500,000 Gross Estate Tax $ 1,005,800 Less Estate Tax Credit $ 780,800 Net Estate Tax $ 225,000 Hypothetical example for illustrative purposes only. Individual results may vary. Tax law and rates subject to change. 17

18 Trust A trust is a legal entity in which title to property is held by one person for the benefit of another 18

19 Types of Trusts Revocable Trusts Irrevocable Trusts 19

20 Elements of a Trust 1. Grantors 2. Trustees 3. Beneficiaries 4. Assets 5. Legal Purpose 6. Capacity 20

21 Steps in Creating a Trust Following examples are for illustrative purposes only, not to be construed as recommendations. Individual results will vary. Consult with a financial professional prior to implementing any strategy. 21

22 Single Person 22

23 Simple Married Couple 23

24 Simple Married Couple Less $450,000 Estate Tax 24

25 A B Trust 25

26 Life Insurance Trust Life Ins Trust No Estate Tax Less $450,000 Estate Tax 26

27 Top 10 Reasons for a Living Trust 1. Peace of Mind 2. Avoids Probate 3. Quick Distribution 4. Reduce FET 5. Privacy 6. Incapacitation 7. Control 8. Revocable 9. Organization 10. Nationwide 27

28 Where do we go from here? Complimentary Consultation Don t Procrastinate! Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specializes in Estate planning. Estate planning can involve a complex web of tax rules and regulations. you should consider the counsel of an experienced estate planning professional before implimenting any strategy. 28

29 A Financial Professional Can Help You To: Clarify Your Investment Goals. Choose Investments that Seek to Meet Your Goals, Risk Tolerance and Time Horizon. Set Realistic Expectations for Performance. Remain Disciplined. Monitor your Portfolio and Recommend Changes over Time 29

30 Your Next Steps!!! 30

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32 Securities Licensed Associates of Zuk Financial Group are Registered Representatives Offering Securities Through: National Planning Corporation (NPC) Member FINRA/SIPC Zuk Financial Group & NPC are Separate and Unrelated Companies This seminar and text should not be construed as individual tax, financial, legal or investment advice. The viewpoints presented are intended for informational and educational purposes. Specific topics, examples and conclusions should not be relied upon without seeking further professional advice. All information presented is subject to change in the Internal Revenue Code and State Teachers Retirement System. Investors should not rely solely on information contained in this presentation in making investment decisions. Zuk Financial Group strongly recommends that individuals seek professional advice before making any investment decisions. Past performance does not guarantee future results. While every attempt has been made to insure the accuracy of the information contained in this presentation, Zuk Financial Group is not responsible for any decision of individuals acting or resulting from the information presented. 32