In this presentation I debunk some common misconceptions with estate planning. This knowledge and more is available to my clients. Audio will soon be added.

1. The Myths and Realities of Estate Planning Presented by: Christopher P. Walmsley, CLTC PM Financial Group The Ohio National Life Insurance Company Ohio National Life Assurance Corporation

4. “ The current estate tax law puts estate tax planners in an impossible situation” – Wall Street Journal, 11 May 2005

5. Myth #1 The Federal Estate Tax Was Repealed

6. Reality: Repeal is only scheduled for 2010 * *Under current tax laws. Tax laws are subject to change. Year Applicable Credit Amount Applicable Exclusion Amount (estate tax free amount) Top Federal Estate Tax Rate 2009 $1,455,800 $3,500,000 45% 2010 No FET No FET N/A 2011+ $345,800 $1,000,000 55%

7. Permanent Repeal: Not an easy task 60

8. Permanent Repeal: Loss of revenue *Cost of H.R. 8 through 2015. Source: Joint Tax Committee $290,000,000,000 *

12. Myth #2 State Death Taxes Were Repealed

15. No State Death Taxes As Of January 2009 Most states have estate and inheritance taxes that are levied in addition to the federal estate tax. State death tax rates generally range from 5-20%. States That Have No Death Tax Alabama Alaska Arizona Arkansas California Colorado Delaware Florida Georgia Hawaii Idaho Louisiana Michigan Mississippi Missouri Montana Nevada New Hampshire New Mexico North Dakota South Carolina South Dakota Texas Utah Virginia West Virginia Wisconsin Wyoming

17. Myth #3 Life Insurance for Tax Liquidity is Unnecessary if Federal Estate Tax is Repealed

21. Myth #4 In 2009, the Unified Credit Shields Lifetime Gifts of up to $2 Million

22. Reality: Gift Tax Exclusion Remains at $1 Million The annual gift tax exclusion for 2009 is $13,000 per recipient Year Federal Estate Tax Exclusion Amount Gift Tax Exclusion Amount Top Federal Gift Tax Rate 2009 $3,500,000 $1,000,000 45% 2010 No FET $1,000,000 35% 2011+ $1,000,000 $1,000,000 55%

23. Myth #5 You Should Review Your Wills and Trusts Every 3 to 5 Years

24. Reality: Annual Reviews May Be Necessary In this example, death in 2009 could force the surviving spouse to elect against the decedent’s will causing additional delays and expenses Example: $3.5 Million Estate with Generic Bypass Language Year Bypass Amount Amount to Spouse 2009 $3.5 million $0 2010 Entire Estate 2011+ $1.0 million $2.5 million

26. Myth #6 Because of Tax Law Uncertainty, You Should Avoid Using Life Insurance Trusts

28. Myth #7 Estate Tax Reform, or Repeal, Would Signal the End of Charitable Giving

29. Reality: Charitable Giving is Growing Annual Contributions to Charities 2000-2007 ($billions) Federal Estate Tax Exclusion Amount 2000-2007 Source: Giving USA Foundation 2008

30. Charitable Giving: A Grass Roots Effort Source: American Association of Fundraising Council 2006

31. Myth #8 Revocable Living Trusts Reduce Taxes

33. Myth #9 Estate Planning is Dead