FPA/NEO

January 19, 2012 Breakfast Program

Lockkeepers

8001 Rockside Road

Valley View, OH  44125

8 am Registration

8:30 am Announcements with program to follow

11:00 am adjourn

Presenter: 

Gary Zwick, J.D., LL.M, CPA

Walter & Haverfield LLP

Session #1, 1 CE Approved for CFP & Ohio Insurance

"Planning for Estates Under $1 Million including

Planning for Distributions from IRAs and Pension Plans"

This presentation wil address:

1.  Tax Issues (State and Federal)

2.  The Importance of Having a Will

3.  Avoidance of Probate

4.  Typical provisions of the estate documents for a small estate

5.  Planning for Distributions from IRAs and Pensions

Session #2, 1 CE Approved for CFP & Ohio Insurance

"Estate Planning with Annuities"

Annuities are an investment vehicle that typically provide tax deferred growth to the investor and ordinary income to the recipient of annuity payments over and above the after tax investment in the contract.  The owner or beneficiary is taxed on the value of the annuity upon death by inclusion in the Gross Estate under Code Sec. 2039.  The recipient may then reduce the amount taxable upon distribution by the estate tax caused by the inclusion in the estate.  Transfers of the contract during lifetime to another person or entity generally triggers the built in earnings to the transferor.

Annuities may or may not be good investments but they are very difficult assets to deal with for estate planning purposes because of the potential to trigger income tax on transfer during lifetime and the lack of a basis step up at death causing income in respect of a decedent.  Estate planning for annuities requires a complete knowledge of both the income and estate tax consequences of owning and transferring this type of asset.

Annuities also may be contracts entered into privately among individuals, usually family members.  These are entirely different assets that may provide interesting estate planning opportunities.  They are entirely creatures of IR pronouncements.

The presentation will not deal with annuities from tax qualified retirement plans nor will it deal with charitable annuities such as gift annuities, charitable lead trusts or charitable remainder trusts