1. CHARITABLE PLANNING: TOOLS TO IMPLEMENT YOUR GENEROSITY Holland Museum P. Haans Mulder, JD, MST, CFP® Cunningham Dalman, P.C. 321 Settlers Road Holland, MI 49423 (616) 392-1821 phmulder@holland-law.com

2. Background Partner at Cunningham Dalman, P.C. Masters in Tax, CFP®, and specialize in estates/elder law and business planning Cunningham Dalman, P.C. has been serving the greater Holland/Zeeland since 1900 Serving the Holland area since 1900

3. Overview Background assumptions Common client goals Status on estate taxes Vehicles for charitable planning Serving the Holland area since 1900

4. Background Assumptions You have an estate plan You are charitably inclined You need to plan for estate taxes (i.e. high net worth) Only have time to cover general concepts Serving the Holland area since 1900

5. Common Client Goals Give money to charity and children Create a stream of income Get children involved in philanthropy Avoid or minimize estate taxes Minimize income taxes Serving the Holland area since 1900

6. Status of Estate Tax Laws ? Serving the Holland area since 1900

7. Status of Estate Tax Laws Plan for the worst, but hope for the best… Worst is exemption will be $1 million in 2011 and will stay at that level Possible exemption will be $3-5 million Serving the Holland area since 1900

8. Vehicles for Charitable Planning Outright gifts Split-interest gifts Gifts tied to a charity or the community foundation Permanent structure for giving Serving the Holland area since 1900

9. Outright Gifts Variety of assets to use Simple to do Tax benefit for gifting appreciated property Be aware of charitablededuction limitations Serving the Holland area since 1900

10. Split-Interest Gifts Gift is “split” between a charity and an individual or individuals (which could include yourself) Charitable remainder trusts Charitable lead trusts Serving the Holland area since 1900

11. Charitable Remainder Trusts Charitable remainder annuity trust (CRAT) Charitable remainder unitrust (CRUT) Pays an amount to an individual or individuals for period of time and remainder to charity Serving the Holland area since 1900

12. Split-Interest Gifts (CRAT) An annuity is paid to an individual or individuals for a term of years (20 at most) or life and remainder goes to charity Diversifying of investments and predictable income stream No transfer tax benefit Serving the Holland area since 1900

13. Split-Interest Gifts (CRUT) A certain percentage of the initial trust assets is paid to an individual or individuals for a term of years (20 at most) or life and remainder goes to charity Helpful way to protect against inflation Payments will vary Serving the Holland area since 1900

14. Charitable Lead Trusts Charitable lead annuity trust (CLAT) Charitable lead unitrust (CLUT) Benefit to charity for period of time and remainder to an individual or individuals for terms of years (20 at most) or life Serving the Holland area since 1900

15. Split-Interest Gifts (CLAT) An annuity is paid to a charity and remainder goes to individuals Beneficial when interest rates are low and already planning on making gifts If investments don’t perform, there will not be a distribution to remainder individuals Serving the Holland area since 1900

16. Split-Interest Gifts (CLUT) A certain percentage of the trust assets is paid to a charity for a term of years and remainder goes to individuals Will always allow for a distribution to individuals Less tax benefit Serving the Holland area since 1900

17. Gifts Tied to a Charity or the Community Foundation Charitable annuity Donor advised fund Supporting organization Serving the Holland area since 1900

18. Supporting Organization Establish a nonprofit organization and “supports” an existing charity Have control over gifts and less complicated than private foundation Not as much control as private foundation Serving the Holland area since 1900

19. Permanent Structure for Giving Private Foundation Donor forms a trust or a nonprofit corporation and makes gifts to the foundation Foundation grants money to charities Serving the Holland area since 1900

20. Private Foundation Allows for greater control/flexibility over gifts and involvement of children in philanthropy Very expensive to setup/administer and complicated rules to comply with Serving the Holland area since 1900

21. Thank You P. Haans Mulder, JD, MST, CFP® Cunningham Dalman, P.C. 321 Settlers Road Holland, MI 49423 (616) 392-1821 phmulder@holland-law.com www.holland-law.com Serving the Holland area since 1900