1. Welcome to the Financial and Estate Planning Council of Metro Detroit Welcome to the Financial and Estate Planning Council of Metro Detroit Charitable Remainder Trust Welcome to the Financial and Estate Planning Council of Metro Detroit Presented by Michael W. Halloran, AEP, CLU, ChFC, CFP ® November 1, 2011

2. Mechanics of a CRT Annuity Trust Fixed Payment Fixed Payment Future Contributions Future Contributions

3. Mechanics Unitrust Percentage of payment Percentage of payment Future contributions Future contributions

4. Mechanics Termination of Trust Termination of Trust

5. Advantages Advantages Charitable Gift Charitable Gift Tax Deduction Tax Deduction Estate Consequences Estate Consequences

6. Tax Consequences

7. Income Tax at Formation

8. Taxation on income distributions –Ordinary income –Capital gains –Tax-exempt income –Corpus

9. Gift tax –Income interest in non-charitable beneficiary. –Annual exclusion and marital deduction. –Charitable deduction for present value of remainder interest.

10. Estate Tax –Inclusion –Deduction

11. Common Features Irrevocable Irrevocable B) Distributions Frequency B) Distributions Frequency C) Sprinkle provisions C) Sprinkle provisions D) Expiration of Trust D) Expiration of Trust E) Lives and years E) Lives and years –Living individuals Duration Duration

12. Payouts Minimum Minimum Maximum Maximum

13. Remainder Interest Rules

14. Wealth Replacement Ideas Life Insurance Life Insurance –Individual Life Insurance –Joint and Last to Die Life Insurance