International Medical Health Organization (IMHO) BUSINESS OF GIVING

Why Give? Importance of doing/supporting charitable work: humanitarian needs are vast Tax breaks Avoid estate taxes and probate court Turn your charitable vision into a reality! Start today & see benefits during your lifetime Ensure your legacy in the future

Ways you can give to IMHO 1.Monetary Donations: Cash, Direct Debit, PayPal 2.Whole Life Insurance 3.Appreciated Stocks 4.Properties 5.Sri Lanka Properties

Ways you can give to IMHO, cont. 6.Sri Lanka Pensions 7.Grant Writing 8.“In Memory of…” 9.Family Foundations 10.Living Trusts 11.Charitable Trusts

Change Your Approach to Life Change Your Approach to Life You Be the Change Enlightenment & Awareness Philanthropic Forums Social Events for Service Fun & Fundraising Love All & Serve All

Estate Planning

UNDERSTANDING YOUR TAXES DURING YOUR LIFE TIME YOU PAY TAXES:  INCOME TAXES  CAPITAL GAINS TAXES  SALES/USE TAXES  PROPERTY TAXES  GIFT TAXES UPON DEATH OF BOTH SPOUSES YOU PAY:  ESTATE TAXES

Estate Planning  WHAT: ANY ASSET BECOMES AN ESTATE UPON DEATH  WHY: TO AVOID PROBATE AND SAVE TAXES  WHEN: NOW

Probate Court  PROBATE COURT: SPECIALIZED COURT THAT ONLY CONSIDERS CASES THAT DEAL WITH THE DISTRIBUTION OF DECEDENT’S ESTATE  ANY INDIVIDUAL WHO HAS GENERALLY MORE THAN $100K IN ASSET VALUE WILL END UP IN PROBATE COURT UNLESS THEY HAVE CREATED THE FOLLOWING: 1. FAMILY LIVING TRUST 2. CHARITABLE PRIVATE FAMILY FOUNDATION 3. CHARITABLE REMAINDER TRUST AND/OR OTHER TRUSTS

Save Approx. 25% NOW  BY CREATING A FAMILY LIVING TRUST AND/OR CHARITABLE FAMILY PRIVATE FOUNDATION YOU IMMEDIATELY SAVE APPROXIMATELY 25% OF YOUR ASSETS BY AVOIDING PROBATE COURT & LEGAL FEES

Living Will  A LIVING WILL IS NOT A SUBSTITUTE FOR A FAMILY LIVING TRUST  A LIVING WILL IS A COMPLEMENTARY DOCUMENT TO A FAMILY LIVING TRUST  A LIVING WILL DOES NOT AVOID PROBATE COURT

Gift Tax Exclusions  A GIFT HAS TO BE GIVEN BEFORE DEATH BY AN INDIVIDUAL OR FROM THEIR LIVING TRUST  GIFT EXCLUSION IS $1 MILLION PER SPOUSE FOR 2009 THRU 2011 (DURING THEIR LIFE)  GIFT CAN BE GIVEN TO MULTIPLE PEOPLE, BUT LIMITED TO $1 MILLION TOTAL FOR EACH SPOUSE

Estate Taxes Exclusions  UPON DEATH OF BOTH SPOUSES, THE ESTATE WILL BE SUBJECT TO ESTATE TAXES OF:  UP TO 45% IN 2009 (WITH AN EXCLUSION OF $3.5M)  0% in 2010  UP TO 45-55% (MOST LIKELY) IN 2011  ONE OF THE MANY TOOLS THAT IS AVAILABLE TO REDUCE ESTATE TAXES IS A CHARITABLE PRIVATE FAMILY FOUNDATION  AS AN ALTERNATIVE, CONSIDER A CHARITABLE TRUST

Coping with Estate Taxes  TO BUY LIFE INSURANCE FROM YOUR ASSETS IN THE TRUST TO PAY UP TO APPROX. 55% (CAN VARY) OF YOUR ESTATE (I.L.I.T.) TAXES.  RETAIN APPROX. 45% (CAN VARY) OF YOUR ESTATE, OR  RETAIN YOUR LIFE PROCEEDS AND DONATE YOUR ESTATE TO YOUR CHARITABLE PRIVATE FAMILY FOUNDATION AND PAY NO ESTATE TAXES.

A Possible Scenario  ESTATE AFTER EXCLUSIONS= $5M  ESTATE = $2.25M  LIFE INSURANCE PROCEEDS PAY ESTATE TAXES $2.25M  NET PROCEEDS TO FAMILY $ 5M

Charitable Family Foundation  CHARITABLE FAMILY FOUNDATION CAN BECOME THE BENEFICIARY OF NET ASSETS IN EXCESS OF ESTATE TAX EXCLUSION, WITHOUT PAYING ESTATE TAXES.  YOUR ADULT CHILDREN OR FAMILY MEMBERS OR ANOTHER “PERSON” (AS TRUSTEES OF THE CHARITABLE PRIVATE FAMILY FOUNDATION) CAN DISTRIBUTE ANNUALLY TO THE CHARITY(-IES) OF YOUR CHOICE.

Filing IRS Form 706 within 9 Months of Death  ALL ASSETS PASS THRU TO THE SURVIVING SPOUSE UPON THE 1 ST DEATH: FILE WITH IRS, NO ESTATE TAXES.  UPON 2 ND DEATH, ALL ASSETS PASS THRU TO BENEFICIARIES OF THE FAMILY LIVING TRUST: * FILE WITH IRS, PAY UP TO APPROX % ESTATE TAXES ON THE VALUE OF ESTATE AFTER EXCLUSIONS (DEPENDS ON THE YEAR)

Save on Current Taxes through Business of Giving  DURING YOUR LIFETIME, TRANSFER ASSETS TO YOUR OWN CHARITABLE PRIVATE FAMILY FOUNDATION & SAVE ON INCOME TAX DOLLARS (CURRENT VALUE)  UPON DEATH, ASSETS TRANSFER TO YOUR OWN CHARITABLE FAMILY FOUNDATION & YOU SAVE ON ESTATE TAX DOLLARS

Public Charity  DONATION TO A PUBLIC CHARITY: YOU RECEIVE A WRITE OFF ON YOUR AGI (ADJUSTED GROSS INCOME)-LINE 31, FORM 1040 CASH: 50% PROPERTY: 30%

Charitable Private Family Foundation  DONATION TO A CHARITABLE PRIVATE FAMILY FOUNDATION: YOU RECEIVE A WRITE OFF ON YOUR AGI (LINE 31, FORM 1040) CASH: 30% APPRECIATED PROPERTY: 20%

Mission Fueled by Vision  PUT YOUR CHARITABLE VISION TO WORK WITH CURRENT INCOME TAX DOLLARS.  CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS

Contact IMHO  START TO MAKE YOUR VISION A REALITY TODAY: CONTACT US!