Contents PERSONAL FINANCE Financial Planning Issues The Financial Planning Puzzle...1 The Need for Financial Planning...2 Basic Steps in the Financial Planning Process...4 Choose the Financial Planning Team...5 Planning for the Recently Divorced...7 Planning for Kids Going to College...9 Planning for the Adult Child at Home...11 Planning for the Sandwich Generation...13 Planning for Women...15 Planning for the Recent College Graduate...17 Life Events Checklist...19 Consumer Price Index...20 Cash Flow Dealing with Identity Theft...21 Cash Management Tools...25 FDIC Deposit Insurance...29 The Personal Budget...33 The Personal Budget Worksheet...35 Personal Cash Flow Statement...37 Debt, Income, Mortgage and Education Analysis (DIME)...38 Personal Finance Data - Fact Finder...39 Cash Flow...42 Cash Flow Detail...43 Net Worth...44 Personal Net Worth...45 Personal Net Worth Statement...49 Lifetime Earnings...50 Managing Your Debt...51 Up to Your Neck in Debt?...54 Checking Your Credit Report...57 Credit Cards...60 Buying a Home...64 Types of Mortgages...69 Pay Off the Mortgage or Invest?...72 The Bi-Weekly Mortgage...75 When to Refinance Your Home...78 Financing an Auto...81 Loan Amortization Schedule...84 Rate of Interest for a Loan...86 Payments To Pay Off A Loan...87 Making Additional Principal Payments...88 Pay Yourself First...89 HEALTH AND MEDICAL Health Insurance The Need for Health Insurance...90 Health Insurance Issues...92 How Employer Provided Health Insurance Works...94 Business Responsibilities Under the ACA...95 How Individual Health Insurance Works...102 Individual Responsibilities Under the ACA...103 Critical Illness Insurance...110 Patient Protection and Affordable Care Act (Highlights)...112 Patient Protection and Affordable Care Act (Timeline)...125 i
Employee Benefits Group Term Life Insurance...130 Group Health Insurance...132 Health Care Portability...133 COBRA Coverage Continuation...136 Cafeteria Plans (IRC Sec. 125)...138 Flexible Spending Accounts...142 Medical Reimbursement Plans...144 Health Reimbursement Arrangements...146 How a Health Reimbursement Arrangement Works...148 Health Savings Account...149 How a Health Savings Account Works...155 Medical Savings Accounts...156 Long-Term Care Long-Term Care...158 Paying for Long-Term Care...161 Annuity LTC Combination Contract...167 Life Insurance LTC Combination Policies...171 Long-Term Care Partnership...175 Long-Term Care Tax Issues...178 Long-Term Care Break-Even...181 Choosing a Long-Term Care Policy...182 How Employer Provided LTC Insurance Works...185 How Individual LTC Insurance Works...186 Long-Term Care Analysis Long-Term Care Analysis Data - Fact Finder...187 Long-Term Care Analysis...188 Long-Term Care Timeline...189 Disability Odds of Disability...190 The Impact of Disability...192 The Individual Need for Disability Insurance...193 Business Need for Disability Insurance...195 Sources of Disability Insurance...196 Individual Disability Income Insurance...198 How Individual Disability Income Insurance Works...200 Group Disability Insurance...201 How Employer Provided Disability Insurance Works...203 When the Parent Becomes the Child...204 Disability Break-Even...207 Disability Income Analysis Disability Income Analysis Data - Fact Finder...208 Disability Income Analysis...209 Disability Timeline...210 INCOME TAXES Basic Income Tax Income Taxes Generally (Three Kinds of Income)...211 Federal Income Tax Approximator...212 Federal Income Tax Tables - 2017...213 Federal Income Tax Tables - 2018...215 Income Tax Tables for Estates - Trusts - Corporations...218 Types of Trusts and Their Tax Treatment...219 ii
Advanced Income Tax Personal Income Tax History (Top Marginal Rates 1913 to Present)...220 Capital Gains and Losses...221 Utilizing Passive Losses...225 Personal Alternative Minimum Tax...227 Accumulation of Trust Income for Minors...230 Income Tax Basis...232 Taxation of Disability Insurance Premiums and Benefits...233 Deductibility of Interest...235 3.8% Tax on Net Investment Income...237 Federal Taxation of Common Investments...241 0.9% Additional Hospital Insurance Tax...250 Tax Legislation Tax Cuts and Jobs Act of 2017...253 Individual Highlights of the Tax Cuts and Jobs Act of 2017...259 Business Highlights of the Tax Cuts and Jobs Act of 2017...267 Highlights of 2017 Disaster Tax Relief...272 The American Taxpayer Relief Act of 2012...277 Highlights of the 2010 Tax Relief Act...284 American Recovery and Reinvestment Act of 2009...296 Highlights of the Pension Protection Act of 2006...304 Highlights of 2005 Hurricane Tax Relief...313 INVESTMENTS Investment Planning The Perfect Investment...317 Key Investment Questions...319 Begin Now or Wait?...321 Accumulation Goals...322 Impact of the Rate of Return...324 Cost of Procrastination...325 Time and Growth of Money...326 Future Value of a Single Sum...327 Present Value of a Future Sum...328 Deposits Needed to Accumulate a Future Sum...329 Rate of Return on a Single Sum...330 Future Value of Periodic Deposits...331 Future Value of a Single Sum and Periodic Deposits...332 Accumulating A Million Dollars...333 The Rule of 72 and the Rule of 115...334 Rule of 72...335 Types of Investment Risk...336 Monte Carlo Simulation...340 Monte Carlo Simulator...342 Inflation...343 Effect of Inflation...344 Rate of Inflation...345 Investment Loss Due to Inflation...346 Wash Sales...347 Purchasing Power of One Dollar...351 The Real Rate of Return Worksheet...352 The Real Rate of Return...355 Tax-Exempt vs. Taxable Income Tables...356 Tax-Exempt vs. Taxable Income...358 Pyramid of Investments...359 Basic Investment Tools...360 Alternative Investments...364 Modern Portfolio Theory...368 Passive vs. Active Investing...372 Maintaining Your Asset Mix...375 Value over Time...376 iii
Investment Planning Analysis Asset Allocation Data - Fact Finder...377 Asset Allocation...379 Current Allocation for Assets...381 Recommended Allocation for Assets...382 Asset Allocation Comparison...383 Asset Allocation Supplemental Information...384 Weighted Average Rate of Return/Net Worth...385 Mutual Funds Mutual Funds...387 Mutual Fund Share Classes A, B, and C...390 Mutual Funds Glossary of Terms...393 Index Funds...397 Exchange-Traded Funds...399 Exchange-Traded Funds vs. Index Mutual Funds...402 How a Mutual Fund Works...404 Mutual Fund Families...406 Dollar Cost Averaging...410 Cash, Stocks and Bonds Securities Investor Protection Corporation (SIPC)...412 Types of Securities Orders...415 Stocks...417 Stock Market Indexes and Averages...420 Growth vs. Value Investing: Which is Best?...423 Coping With Market Volatility...425 Bonds...428 Corporate Bonds...431 U.S. Government Securities...434 Treasury Inflation-Protected Securities...440 Municipal Bonds...443 Other Investment Tools Hedge Funds...446 Limited Partnerships...449 Real Estate Investment Trusts...452 Accumulation Funding Analysis Accumulation Funding Analysis Data - Fact Finder...455 Accumulation Funding Analysis...456 Accumulation Funding Timeline...457 RETIREMENT PLANNING Retirement Needs Do You Desire Retirement Peace of Mind?...458 Health Care Planning In Retirement...462 The Need for Retirement Planning...465 Average Life Expectancy at Age 65...468 Sources of Retirement Income...469 When Will Your Nest Egg Run Out?...472 Evaluating Early Retirement Offers...474 Making the Most of Your Retirement Plan...477 Length of Time a Sum Will Last...479 Present Value of Future Annuity Payments...480 Progress Toward Retirement Goals...481 Internal Rate of Return...482 iv
Social Security Optimizer...483 Social Security Retirement Claiming Strategies for Married Couples...485 Annuities in Retirement Income Planning...491 Deferred Income Annuities...494 How a Deferred Income Annuity Works...498 Pension Income Alternative...499 Reverse Mortgages...502 How a Reverse Mortgage Works...507 Retirement Needs Analysis Retirement Needs Analysis Data - Fact Finder...508 Retirement Analysis...510 Capital Available for Retirement...511 Alternatives to Achieving Retirement Goals...512 Achieving Your Retirement Goals...513 Retirement Timeline...514 Retirement Analysis Detail...516 Individual Retirement Plans IRAs Compared...517 Tax-deductible Portion of Your IRA Contribution...521 IRA Historical Limits (Traditional and Roth IRAs)...522 Traditional IRAs...523 How a Traditional IRA Works...529 Deductible IRA Contributions for Traditional IRAs...530 Does It Matter When You Contribute to an IRA?...534 Roth IRA Conversion (Factors to Consider)...535 Roth IRAs...540 How a Roth IRA Works...546 Employer Sponsored Plans Transfers from Employer-Sponsored Retirement Plans to Individual Plans...547 Employer Sponsored Plans...551 Qualified Retirement Plans...552 Life Insurance in Qualified Plans (Legal Limitations)...555 Keogh Plans (H.R. 10)...559 Traditional Profit Sharing Plan...562 How a Traditional Profit Sharing Plan Works...568 Traditional Money Purchase Plan...569 How a Traditional Money Purchase Plan Works...575 Nontraditional Defined Contribution Plan...576 How a Nontraditional Defined Contribution Plan Works...582 Traditional Defined Benefit Plan...583 How a Traditional Defined Benefit Plan Works...590 Target Benefit Plan...591 Employee Stock Ownership Plan (ESOP)...596 Cash or Deferred 401(k) Plan...603 Safe Harbor 401(k) Plan...613 How a 401(k) Cash or Deferred Plan Works...617 Solo 401(k)...618 How a Solo 401(k) Plan Works...621 403(b) Salary Deferral Plan (Tax-Sheltered Annuities)...622 How a 403(b) Salary Deferral Plan Works...627 Stock Bonus Plan...628 Age-Weighted Profit Sharing Plan...634 Fully-Insured Defined Benefit Plan (IRC Sec. 412(e)(3))...640 Simplified Employee Pension (SEP)...645 v
How a SEP-IRA Works...652 SIMPLE Retirement Plan...653 How a SIMPLE IRA Works...659 Qualified Plans Compared...660 Qualified Plan Historical Limits...665 Qualified Roth Contribution Program...666 Defined Contribution Plans Compared...669 Combinations of Retirement Plans...673 Top-Heavy Plans...677 Fiduciary Standards and Responsibilities...679 Prohibited Transactions Rules...682 Qualified Plan Participant Loans...684 Unrelated Business Taxable Income (UBTI)...686 Retirement Distributions Retirement Plan Distributions Before Age 59½...688 Substantially Equal Periodic Payments - 72(t)...692 Lump-Sum Distributions Before Age 59½...693 IRA Rollover of Qualified Plan Values vs. Lump-Sum Tax Treatment...695 IRA Rollover as a Qualified Plan Conduit...696 Mandatory Withholding for Plan Distributions...698 Net Unrealized Appreciation...700 The Basics of Required Minimum Distributions...704 Required Minimum Distributions (Lifetime)...706 Required Minimum Distributions After Death (Spousal Beneficiary)...712 Required Minimum Distributions After Death (Non-Spouse Beneficiaries)...717 The Basics of Stretch IRAs...722 Stretch IRA...726 How a Stretch IRA Works (Spousal Beneficiary and a Single Inherited IRA)...727 How a Stretch IRA Works (Spousal Beneficiary and Separate Inherited IRAs)...728 How a Stretch IRA Works (Non-Spouse Beneficiaries and Separate Inherited IRAs)...729 Uniform Lifetime Table...730 Joint Life and Last Survivor Table...731 Single Life Table...750 Substantially Equal Periodic Payments...751 Rate of Withdrawal in Retirement...754 EDUCATION FUNDING Planning for College The Benefits of a College Education...755 Saving for College...757 Ways to Save for College...759 Section 529 Qualified Tuition Plans...762 529 Higher Education Savings Plan...764 How a 529 Higher Education Savings Plan Works...769 529 Prepaid Tuition Plan...770 How a 529 Prepaid Tuition Plan Works...775 Coverdell Education Savings Account...776 How a Coverdell ESA Works...781 Education Savings Plans Compared...782 Paying for College Today...785 Ways to Pay for College...791 Choosing a College...793 College and Financial Aid Calendar...797 Growth in College Costs (2000-2016)...799 Projected Costs of Education...800 vi
Education Funding Analysis Education Funding Analysis Data - Fact Finder...801 Education Funding Summary...802 Education Funding Analysis...803 Education Funding Timeline...804 Progress Toward Education Goals...805 PROTECTING YOUR FINANCES Property and Casualty Personal Property and Casualty Insurance...806 Automobile Insurance...809 Homeowner s Insurance...812 Renter s Insurance...816 Condominium Unit Owner s Insurance...819 Earthquake Insurance...823 Flood Insurance...825 Watercraft Insurance...830 Individual Liability Insurance...834 Life Insurance and Annuities General Purposes of Life Insurance...838 Life Insurance: Glossary of Terms...840 Spouse Insurance...845 Considerations in the Purchase of Life Insurance...846 First-to-Die Life Insurance Policies...848 Survivorship Life Insurance (Second-to-Die)...850 Tax-Free Policy Exchanges (IRC Sec. 1035)...851 Modified Endowment Contracts...853 The Need for Responsible Planning...855 Capital Needs Analysis Worksheet...857 How Much Life Insurance?...858 Human Life Value...862 Types of Life Insurance Policies...863 Term Life Insurance...865 Whole Life Insurance...869 Universal Life Insurance...873 Variable Life Insurance...877 Variable Universal Life Insurance...882 Indexed Universal Life Insurance...887 Immediate Annuities...893 How an Immediate Annuity Works...895 Deferred Annuities...896 How a Deferred Annuity Works...902 Variable Annuities...903 Indexed Annuities...910 Combination Annuities...915 Taxation of Nonqualified Annuities...916 2001 Commissioners Standard Ordinary (CSO) Mortality Table...923 Deaths per Thousand at Various Ages...925 The Chance of Dying Before Age 65...927 Insurance Company Rating Systems...929 Survivor Needs Analysis Survivor Needs Analysis Data - Fact Finder...932 Survivor Needs Now and Future (Client dies)...935 Survivor s Immediate Needs (Client dies)...936 Survivor Needs Timeline (Client dies)...937 Survivor Analysis Detail (Client dies)...940 vii
SOCIAL SECURITY AND OTHER GOVERNMENT PROGRAMS Social Security, Medicare, and Medicaid An Overview of Social Security Benefits...941 Who Receives Social Security Benefits?...944 Social Security and Medicare Taxes...945 Taxation of Social Security Benefits...947 Taxable Portion of Social Security Benefits...948 How Work Affects Social Security Benefits...949 Social Security Retirement Benefits...952 When to Take Social Security Retirement Benefits...957 Social Security Break-Even...960 The Social Security Blackout Period...961 Early or Delayed Retirement s Effect on Social Security Benefits...963 Social Security Survivor Benefits...965 Social Security Disability Benefits...970 Medicare Parts A and B...976 Medicare Part C - Medicare Advantage...979 Medicare Part D - Prescription Drug Coverage...981 How Medicare Prescription Drug Coverage Works...985 Medigap Policies...986 Medigap Policies Compared...989 Medicaid...992 ABLE Account...998 How an ABLE Account Works...1004 ESTATE PLANNING Estate Planning Concepts The Need for Estate Planning...1005 Key Estate Planning Considerations...1006 The Importance of Beneficiary Designations...1011 Beneficiary Audit Checklist...1014 Estate Settlement Costs Funnel...1015 Estate Settlement Costs...1016 The Federal Estate Tax (An Overview for 2018)...1018 How the Federal Estate Tax Works (A Simplified Illustration)...1019 Federal Estate Tax Tables...1020 Federal Estate Tax Worksheet (Assumes Death Occurs During 2018)...1022 Federal Estate Tax Approximator...1023 Valuation of Estate Assets...1024 Basic Estate Planning Basic Steps in the Estate Planning Process...1026 Meet the Estate Planning Team...1028 Choose the Estate Planning Team...1029 How Often Should Legal Documents Be Reviewed?...1031 Choosing an Attorney...1032 Items to Discuss Before Meeting with an Attorney...1034 Advantages of a Will...1037 Types of Wills and Trusts...1039 Various Estate Planning Arrangements (A Summary of Benefits)...1041 No Will? No Problem! (Common Law States)...1043 No Will? No Problem! (Community Property States)...1044 Duties of an Executor...1045 Steps in a Probate (An Overview)...1047 Avoiding Probate...1048 Transfer on Death...1050 Holding Title...1052 viii
Joint Tenancy...1054 Should Appreciated Assets be held in Community Property or Joint Tenancy?...1056 Revocable Living Trust (Inter-vivos Trusts)...1058 Funding Your Revocable Living Trust...1059 Durable Power of Attorney...1061 Who Makes Medical Decisions When I Cannot?...1062 Advance Health Care Directives...1064 Lifetime Gifts...1067 The Federal Gift Tax...1069 Annual Exclusion Gifts (Reducing the Federal Estate Tax)...1070 IRC Sec. 2503(c) Trust for Minors...1071 How an IRC Sec. 2503(c) Trust Works...1073 Uniform Gifts to Minors Act...1074 Uniform Transfers to Minors Act...1075 How a Custodial Account Works...1077 Special Needs Trust...1078 How a Special Needs Trust Works...1079 Advanced Estate Planning Tools Per Capita vs. Per Stirpes...1080 Death Tax Reduction...1084 The Marital Deduction...1086 Special Use Valuation (IRC Sec. 2032A)...1088 Deferring Payment of Federal Estate Taxes (IRC Sec. 6161 and IRC Sec. 6166)...1090 Powers of Appointment...1093 Disclaimers...1095 Generation-Skipping Transfer Tax...1097 Dynasty Trust...1099 How a Dynasty Trust Works...1102 Income in Respect of a Decedent...1103 Federal Taxes on Income in Respect of a Decedent...1106 Potential Combined Tax Disaster with a Child as the Beneficiary...1107 Potential Combined Tax Disaster with a Grandchild as the Beneficiary...1108 Effects of Skipping a Generation...1109 Transfers to Noncitizen Spouses...1110 Estate Freezing Techniques Estate Freezing Generally...1114 Family General Partnership...1115 Family Limited Partnership...1117 Installment Sale...1120 Private Annuity...1122 Corporate Recapitalization...1123 Joint Purchase of Assets...1124 How a Grantor-Retained Interest Trust Works (GRIT)...1125 How a Grantor-Retained Annuity Trust Works (GRAT)...1126 How a Grantor-Retained Unitrust Works (GRUT)...1127 Intentionally Defective Grantor Trust...1128 How an Intentionally Defective Grantor Trust Works...1131 How a Qualified Personal Residence Trust Works...1132 Life Insurance and Estate Taxation Using Cash Value Life Insurance...1134 How Are Death Taxes Paid?...1138 Taxation of Life Insurance Proceeds...1139 Irrevocable Life Insurance Trust for a Single Person...1140 Irrevocable Life Insurance Trust for a Married Couple...1142 Paying Estate Costs with Estate-Tax-Free Dollars...1144 ix
Effect of Life Insurance Transfers on Federal Estate Taxes...1145 Gifts of Life Insurance Policies...1146 Adult Children s Insurance Trust...1147 Bypass Trust...1149 How a Bypass Trust Works...1151 How An Irrevocable Life Insurance Trust Works...1152 How Bypass and Irrevocable Life Insurance Trusts Work...1153 Bypass and QTIP Trusts...1154 How Bypass and QTIP Trusts Work...1157 Using the Applicable Exclusion Amount Today...1158 Deceased Spousal Unused Exclusion Amount...1159 Estate Planning Analysis Estate Analysis Data and Assumptions - Fact Finder...1162 Estate Summary Simple Will...1164 Estate Analysis Simple Will...1165 Estate Summary Bypass Trust...1168 Estate Analysis Bypass Trust...1169 Estate Summary Bypass and Irrevocable Life Insurance Trusts...1171 Estate Analysis Bypass and Irrevocable Life Insurance Trusts...1172 Estate Options...1174 BUSINESS PLANNING Basic Business Concepts Business Owner Planning Needs...1175 Retirement and the Business Professional...1176 Basic Types of Business Organizations...1178 Advantages and Disadvantages of Corporations...1180 S Corporations...1181 Limited Liability Companies...1183 Business Events Checklist...1185 Employment Practices Liability Insurance...1186 Income Tax Tables for Estates - Trusts - Corporations...1189 Business Continuation Business Continuation Analysis Data - Fact Finder...1190 Meet the Business Planning Team...1191 Types of Corporate Continuation Plans...1192 Importance of a Business Continuation Plan...1194 Commonly Asked Business Continuation Questions...1195 Buy-Sell Agreement...1201 Buy-Sell Agreement - Partnership...1203 Buy-Sell Agreement - Sole Ownership...1205 Buy-Sell Agreement - Corporation...1207 Buy-Sell Agreement - Cross-Purchase vs. Stock Redemption...1209 Buy-Sell Agreement - S Corporation...1212 Cross-Purchase Buy-Sell Agreement...1214 Cross-Purchase Buy-Sell Agreement with Three or More Owners...1215 Buy-Sell Agreement - Limited Liability Company (Single-Member LLC)...1216 Buy-Sell Agreement - Limited Liability Company (Member-Managed LLC)...1218 Buy-Sell Agreement - Limited Liability Company (Manager-Managed LLC)...1220 Stock Redemption Plan...1222 Wait-And-See Buy-Sell Agreement...1223 Trusteed Corporate Buy-Sell Agreement...1224 Making Buy-Sell Agreements Acceptable to the IRS...1226 Corporate Distributions to Redeem Stock...1227 x
Corporate Stock Redemption (IRC Sec. 303)...1229 Business Succession - Selling Your Business...1231 Family Attribution...1234 Methods of Funding a Buy-Sell Agreement...1236 Who Should Own the Policy?...1237 Taxes on Premiums Paid by a Corporation...1238 Transfers for Value...1240 Reasons to Value a Business...1242 Business Valuation Factors...1243 Valuation Methods Explained...1246 Advantages and Disadvantages of Valuation Methods...1249 Business Valuation...1252 Discount and Capitalization Rates...1254 Business Valuation Per Share Using The Courtroom Method...1257 Time Delay in Closing Contested Estates...1259 Odds of Disability...1261 Disability of a Business Owner...1263 Business Overhead Expense...1267 Disability Buy-Out Cross-Purchase Agreement...1268 Disability Buy-Out Stock Redemption Plan...1269 Key Employee Insurance...1270 Methods of Valuing a Key Employee...1271 Financing the Replacement of a Key Employee...1272 Key Employee Coverage Issues...1273 Protecting Against the Loss of a Key Employee...1275 Key Employee Disability Plans...1276 Business Continuation Needs...1277 Ways to Pay for Business Continuation...1278 Benefits to Business Owners Qualified Deferred Compensation Plan (IRC Sec. 457)...1279 Nonqualified Deferred Compensation Plan...1281 Nonqualified Deferred Compensation [Avoiding Constructive Receipt]...1282 Rabbi Trust...1287 Secular Trust...1289 Split-Dollar Arrangement...1291 Federal Taxation of Split-Dollar Arrangements...1295 Split-Dollar Arrangement (Deferred Compensation - Collateral Assignment Method)...1300 How Split-Dollar Collateral Assignment Works...1301 Split-Dollar Arrangement Endorsement Method...1302 Split-Dollar Arrangement Funding an Irrevocable Life Insurance Trust...1303 How Split-Dollar Funding a Life Insurance Trust Works...1305 Split-Dollar Arrangement Funding a Cross-Purchase Agreement...1306 How Split-Dollar Funding a Cross-Purchase Agreement Works...1307 Executive Carve-Out Plan...1308 Executive Bonus Arrangement...1309 How an Executive Bonus Arrangement Works...1310 Restricted Executive Bonus Arrangement...1311 How a Restricted Executive Bonus Arrangement Works...1313 Employee Stock Purchase Plan...1314 Employer-Owned Life Insurance...1319 Executive Long-Term Care...1322 Incentive Stock Option...1325 Life Insurance in the Business World...1329 Non-Statutory Stock Option...1331 xi
CHARITABLE PLANNING Gifting Techniques Considering a Charitable Gift...1337 Charitable Giving Techniques...1339 Charitable Income Tax Deduction...1341 Charitable Gifts and Estate Taxation...1343 Qualified Conservation Easement...1344 Unrelated Business Taxable Income...1348 Charitable Remainder Annuity Trust (CRAT)...1350 How a Charitable Remainder Annuity Trust Works (CRAT)...1353 Charitable Remainder Unitrust (CRUT)...1354 How a Charitable Remainder Unitrust Works (CRUT)...1357 Charitable Remainder Trust Numerical Tests...1358 Other Charitable Considerations Charitable Gift Annuity (CGA)...1360 How a Charitable Gift Annuity Works (CGA)...1362 Taxation of a Charitable Gift Annuity...1363 Donor-Advised Funds...1365 Pooled Income Fund (PIF)...1368 How a Pooled Income Fund Works (PIF)...1369 Charitable Lead Annuity Trust (CLAT)...1370 How a Charitable Lead Annuity Trust Works (CLAT)...1372 Charitable Lead Unitrust (CLUT)...1373 How a Charitable Lead Unitrust Works (CLUT)...1375 Supplementing Retirement Income With a CRUT...1376 Asset Replacement Trust...1379 Life Insurance Charitable Plan...1380 Private Foundations...1381 Supporting Organizations...1385 Charitable Remainder Trust Analysis Charitable Remainder Trust Data and Assumptions - Fact Finder...1388 Charitable Remainder Annuity Trust...1389 Wealth Replacement Trust (CRAT)...1390 Charitable Remainder Unitrust...1391 Wealth Replacement Trust (CRUT)...1392 ADVISOR SUPPORT Planning Tools Agenda for Discussion...1393 Agenda...1394 Business Owner Planning Needs...1395 Planner Input Sheet...1396 Receipt for Documents...1397 Planning Task List...1399 Action Items...1401 Goals...1402 Client Referral...1403 Business Owner Planning Needs...1404 Divorce Checklist...1405 Beneficiary Audit Checklist...1408 Financial Review Checklist...1409 Life Events Checklist...1411 Recommendations...1412 xii