TABLE OF CONTENTS. vii Field Guide. Page. Introduction... 1

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1 2014 Field Guide vii TABLE OF CONTENTS Introduction... 1 ESTATE PLANNING Table Of Contents... 3 Planning Pointers... 5 Charts Estate Planning Matrix... 8 The Estate Funnel Human Life Value Federal Estate Tax Simple Will Trust Will Revocable Living Trust Pour-Over Will QTIP Trust Generation-Skipping Transfers Installment Sale & Private Annuity Gifts & Split-Gifts Life Insurance Trust Charitable Remainder Trust Grantor Retained Annuity Trust (GRAT) Private Split-Dollar Intentionally Defective Trust Life Insurance As Property Life Insurance Products Discounted Dollars References Checklist Of Documents Gift Tax Calculation Steps Estate Tax Calculation Steps History Of The Federal Estate Tax Typical Estate Debts, Costs, and Taxes State Exemptions For Life Insurance Federal Credit States Community Property States State Inheritance & Estate Taxes Inflation Adjuster... 88

2 viii 2014 Field Guide Ownership And Beneficiary Arrangements Survivor Checklist Evaluating The Risk Of Death... One Individual Two Individuals Facts About... Fathers Mothers Children The Value Of An Education Funerals The Cost Of Child Care The Value Of A Homemaker Human Life Value In The Courtroom College Costs Projected Human Life Value Trusts And Their Uses Degrees Of Kindred Intestate's Will State Laws On Intestate Succession BUSINESS PLANNING Table Of Contents Planning Pointers Charts Development Cycle Of A Business Disposition Of A Business Interest Business Valuation Entity Purchase Agreement Cross Purchase Agreement Trusteed Cross Purchase Agreement Wait And See Buy/Sell Agreement Key Person Buy-Out Agreement Partial Stock Redemption Reverse Section Key Person Insurance Reverse Key Person Insurance Family Limited Partnership Recapitalization

3 2014 Field Guide ix Attribution References Business Comparison Odds of Death Before Age Odds of Death Within 10 And 20 Years Key Person Valuation Formulas Financial Ratios Contested Business Valuations Buy/Sell Agreements Help Fix The Value Comparison Cross Purchase & Entity Purchase Comparison Cross Purchase & Trusteed Cross Purchase EMPLOYEE BENEFITS Table Of Contents Planning Pointers Charts Taxation Of Employee Benefits Group Insurance Salary Allotment Executive Equity Restrictive Bonus Plan Split-Dollar Insurance Split-Dollar Funding Cross Purchase Split-Dollar Funding Life Insurance Trust Survivor Income Deferred Compensation Disability The Living Death Disability Income Plan Health Reimbursement Arrangements Health Savings Accounts Long-Term Care Tax-Favored Retirement Plans (k) Plan (b) Plans (i) Plans Plans Pension Maximization Deferred Annuity

4 x 2014 Field Guide References Employee Benefit Checklist Employee Benefit Statistics Employer/Employee Split-Dollar Plans Split-Dollar Applicable Code Sections Comparison Split-Dollar & Executive Equity Comparison Split-Dollar & Deferred Compensation Annuity Matrix Qualified Plans Checklist (k) Plan Designs Employee Benefit Limits The IRA Spectrum Which IRA Roth or Traditional? Educational Tax Incentives Historical Increases Of Social Security Taxes Social Security Payroll Taxes Social Security Retirement Benefits When To Take Consumer Price Index Projected Earnings Penalty Of Waiting Early Saver vs. Late Saver Dollar Cost Averaging How Money Grows How Money Goes Medical Expense Programs Disability Statistics Disability Income Tax Considerations Facts About... Long-Term Care Retirement APPENDIX Table Of Contents Quotable Quotes Terms & Concepts Accelerated Death Benefit Accounting For Business Life Insurance

5 2014 Field Guide xi Accumulated Earnings Tax Age-Weighted Profit Sharing Plan Annual Exclusion Gifts Asset Protection Bank Owned Life Insurance (BOLI) Book Value Business Overhead Expense Insurance Cafeteria Plans Capital Gains Captive Insurance Arrangements Cash Balance Pension Plan Charitable Gift Annuity Charitable Gifts Of Life Insurance Charitable Trusts Charity As Designated Beneficiary Of Retirement Plan Children's Life Insurance College Education Funding Common Disaster Clause Community Property Company Owned Life Insurance (COLI) Constructive Receipt Contingent Ownership Controlling Stockholder Corporate Alternative Minimum Tax Coverdell Education Savings Account Critical Illness Insurance Crummey Powers Death Benefit Only Plan Decanting Decoupling Of State Death Taxes Deemed IRA Deferral of Estate Tax Defined Benefit Pension Plan Defined Contribution Health Plan Disability Buy-Out Insurance Disability Income Taxation Disability Under Social Security Disclaimer

6 xii 2014 Field Guide Divorce and Life Insurance Domestic Partners Domicile Durable Power Of Attorney Dynasty Trust Employer Owned Life Insurance (EOLI) Employee Stock Ownership Plan (ESOP) Equity Split-Dollar Equity-Indexed Products ERISA Estate Equalization Estate Freezes Estate Taxation Of Life Insurance Fair Market Value Family Holding Company Fiduciary Financial Underwriting First-To-Die Life Insurance Funeral Trusts Golden Parachute Rules Grantor Trust Rules GRITs, GRUTs, And GRATs Group Carve Out Guaranteed Minimum Withdrawal Benefit Guaranteed Purchase Option Health Care Power Of Attorney Incentive Stock Option Incentive Trust Income In Respect Of A Decedent Individual 401(k) Plan Individual Retirement Arrangements (IRAs) Installment Sale Insurable Interest Interest Adjusted Net Cost Interest Deduction Interest-Free Loans IRA Distribution Planning Legal Expense Benefit Leveraged Benefit

7 2014 Field Guide xiii Life Insurance Default Risk Life Insurance In Qualified Plans Life Insurance Premium Limitations Life Settlements Limited Liability Company Limited Liability Company (LLC) v. ILIT as Life Insurance Ownership Structure Living Will Long-Term Care Combination Products Long-Term Care Partnership Program Managed Care Marital Deduction Medicaid Medicaid Planning Medical Information Bureau Medicare Minimum Deposit Insurance Minors and IRAs Minors and Life Insurance Money Purchase Pension Plan Net Unrealized Appreciation NIMCRUT Noncitizen Estate Planning Nonqualified Executive Benefits Nonqualified Stock Options Oral Trust Partnerships Penalties - Estate And Gift Taxes Pension Benefit Guarantee Corporation (PBGC) Per Stirpes - Per Capita Personal Holding Company Pet Estate Planning Phantom Stock Plan Planned Giving Portability Post Mortem Planning Power Of Appointment Premium Financing Private Annuity

8 xiv 2014 Field Guide Private Foundation Private Pension Probate Professional Corporation Profit Sharing Plan Prudent Investor Rule Qualified Conservation Easement Qualified Domestic Relations Order (QDRO) Qualified Domestic Trust Qualified Long-Term Care Insurance Qualified Personal Residence Trust Qualified Retirement Plans Qualified Small Business Stock Rabbi Trust Recessionary Estate Planning Reciprocal Trust Doctrine Reduced Valuation Reinsurance Remainder Interest Transaction (RIT) Retired Lives Reserves (RLR) Retirement Income Planning Reverse Mortgage Risks Types Of Roth 401(k) Roth IRA Roth IRA Conversion Rule Against Perpetuities S Corporation Savings/Thrift Plan Section 72(t) Calculation Section 303 And The Unlimited Marital Deduction Section 306 Stock Section 409A Section 529 Plans Secular Trust See-Through Trust Self-Cancelling Installment Notes (SCINs) Self-Employed Retirement Plans Self-Settled Trust

9 2014 Field Guide xv SIMPLE Cafeteria Plans SIMPLE IRA Plans Simplified Employee Pension (SEP) Social Security Taxation Of Benefits Special Needs Planning Split-Dollar Rollout Spousal Access Trust (SLAT) Step Transaction Doctrine Stepped-Up Basis Stock Bonus Plan Stranger-Originated Life Insurance (STOLI) Structured Settlement Supplemental Executive Retirement Plan (SERP) Survivorship Life Insurance Target Benefit Plan Tax-Free Exchange Tax Law Sources Top-Hat Plan Total Return Unitrust Traditional IRA Transfer For Value Trust Protector Trusts For Minors Uniform Transfers/UG To Minors Acts Unreasonable Compensation Valuation of Life Insurance Variable Annuities Welfare Benefit Fund Tables Federal Income Tax Rates Federal Estate & Gift Tax Rates Lifetime RMD + Table I Rates Table 2001 Rates & P.S. 58 Rates Table 38 Rates Commissioners 1980 Standard Ordinary Mortality Table Commissioners 2001 Standard Ordinary Mortality Table Healthy Life Expectancy

10 xvi 2014 Field Guide Longevity In Retirement Compound Interest & Future Value Of Money Compound Interest & Present Value Of Money Future Value Table One Dollar Principal Future Value Table One Dollar Per Annum Present Value Table One Dollar Due Present Value Table One Dollar Per Annum Amortization Table Insurance Company Ratings Industry Associations Cool Web Sites Code Crib Sheet Index