Vidant Medical Center Foundation

1 Planned Giving Potential Tax Law Changes 2013

2 Potential Tax Law Changes for 2013 Unless Congress intercedes before year end, we will experience tax rate increases in 2013 including: Income Capital Gains Dividends Gifts Estates

3 Potential Tax Law Changes for 2013 Personal Income Tax Rates % 15%15% 25%28% 28%31% 33%36% 35%39.6%

4 Potential Tax Law Changes for 2013 Long Term Capital Gains %20% * 23.8% * A new “Medicare” tax of 3.8% will apply to capital gains for incomes over $200K (single) & $250K (married).

5 Potential Tax Law Changes for 2013 Dividends 2012 = 15% (long-term capital gains) 2013 = “ordinary income” tax rate Potential top rate of 39.6% Medicare tax will apply for higher income tax brackets, bringing top dividend tax rate to 43.4%

6 Potential Tax Law Changes for 2013 New Medicare Tax The Patient Protection and Affordable Care Act (PPACA) creates a new Medicare tax for % on income > $200K (single) & $250K (married) Interest / Dividends / LT Capital Gains / Passive Fortunately, IRA & pension income is excluded IRA income does apply to $200K & $250K limits

7 Potential Tax Law Changes for 2013 Gifts & Estates Gift Tax Exemption is the amount your estate can be worth before you are subject to estate taxes $5.12 M / $10.24 M $1 M Portability = provision allowing estates to transfer unused lifetime exemption to surviving spouse $5.12 M $0.00

Potential Tax Law Changes for 2013 Gifts & Estates IRS estimates 8,600 estates paid tax in IRS estimates 114,600 estates will be liable in Estate Tax Rates % 55% (over $3 M)

Potential Tax Law Changes for 2013 Don’t Let Congress Control Your Assets

Potential Tax Law Changes for 2013 Don’t Wait on Congress to Review or Start Your Plan

11 Potential Tax Law Changes for 2013 Consult with your Advisors! CPA Attorney Financial Advisor Wealth Manager

12 Vidant Medical Center Foundation Planned Giving Potential Tax Law Changes 2013 Greg Sisk Planned Giving Officer Vidant Medical Center Foundation