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The Planned Giving Calculator is designed to show how taking advantage
of the $10,000 annual gift tax exclusion allowed by the IRS can save
gift and estate taxes. Federal tax law generally allows each individual
to give up to $10,000 per year to anyone without paying gift taxes,
subject to certain restrictions. That means you can transfer some of
your wealth to your beneficiaries during your lifetime to reduce your
taxable estate. For example, you could give $10,000 a year to each of
your children, and your spouse could do likewise (for a total of $20,000
per year). You may make $10,000 annual gifts to as many people as you
wish. These gifts DO NOT use up any of your unified credit. In addition
these gifts DO NOT count against the Generation Skipping Tax Maximum of
$1,000,000 so these gifts are especially good for transferring wealth to
grandchildren.
The
above example shows the results of a donor (usually grandparents) giving
$10,000 each to five beneficiaries (usually grandchildren) for 10 years.
The assumed Growth Rate is 9%, and the donors begin with Assets valued
at $2,000,000 while the beneficiaries begin with nothing.
After 10 years of giving the beneficiaries will have a combined net
worth of $828,014.67 while the donors will have Assets valued at
$3,906,712.68. All of the net worth of the beneficiaries is free of
estate and gift tax and will not have used any of the donor's $1,000,000
Generation Skipping Tax Exclusion. Given the value of the donor's
portfolio
this move (which did not keep the donor's portfolio from doubling in
value) will save $455,408.07 in Estate and Gift taxes as well as be
available to the beneficiaries for use in education or other necessities
while the donors are still alive. There are many more strategies
available that can save even more in Estate and Gift taxes. For a free
consultation to discuss your particular situation, call Kloster Capital
Management, LLC at 1-888-556-7837 for more information.
Download
our FREE Estate Gift Calculator
Once
it is downloaded you will need a ZIP utility like WinZip (http://www.winzip.com)
to extract the file to the folder of your choice. For a tutorial
on how to use the calculator and what the figures mean, click on the
second link below.
 
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