1. For financial professional use only. This material may not be presented in any manner in which it is accessible by the public. How to Make Your Clients’ Estate Plans EPIC EPIC Presenter name, title Month day, 2014

2. What is EPIC Estate Planning? Your Life. Your Legacy. Your EPIC.

3. Your Client’s Estate Planning Concerns

4. Traditional Estate Planning –Discussions centered on: What is the status of estate taxes? What is the newest estate planning strategies? Is estate planning just planning after your death? –These discussions are important but they may miss the central objective How to help maximize your client’s estate During Life and At Death

5. Client’s estate planning decisions Faced with the repression of the “OR” Do I live less today, in order to give more tomorrow? OR Do I live more today, in order to give less tomorrow?

6. What is EPIC Estate Planning? One definition of Epic is: ep·ic adjective \ ˈ e-pik\ “extending beyond the usual or ordinary” EPIC Estate Planning –Process of helping make your client’s estate plan extend beyond traditional estate planning Source: www.merriam-webster.com/dictionary/epic

7. Client’s estate planning decisions EPIC embraces the brilliance of the AND I want to maximize how I live today AND I want to maximize what I give tomorrow

8. What is EPIC Estate Planning? Stands for Estate Planning Individually Centered –Planning centers around the client Maximizing the EPIC Circles Minimizing the Four Estate Planning Threats –An EPIC approach for EPIC Team: Client Client’s Advisor/Agent/CPA/Tax Professional Client’s Estate Planning Attorney

9. The EPIC Circles Your Life. Your Legacy. Your EPIC.

10. It begins with…

11. Next, comes… Your Descendants Children Grandchildren Other beneficiaries Children with Special Needs “… person should leave his kids enough to do anything but not enough to do nothing.” Warren Buffet

12. It ends with… Community Foundations Government Federal State Local

13. EPIC Circle

14. However, Not All Families are the Same… Single Parents Blended families Non-citizen Spouses Partners (unmarried couples)

15. Four Estate Planning Threats Your Life. Your Legacy. Your EPIC.

16. Taxes

17. Old Paradigm – Get It Out Large gap between federal transfer and income tax rates In 2001: –Unified credit was $675,000 and top tax rate was 55% –Long term capital gains was 20% Estate Tax 55% Capital Gains Tax 20 % Gap is 35% Source: Internal Revenue Service

18. New Paradigm – Tax Basis Opportunities Smaller gap between federal transfer and income tax rates In 2014: –Basic exclusion is $5.34 M and top tax rate was 40% –Long term capital gains was 20% + 3.8% Health Care Surtax Estate Tax 40% Capital Gains Tax 23.8 % Gap is 16.2% Source: Internal Revenue Service

19. Creditors TaxesCreditors

20. Protections Three areas of protections 1.Client –Retirement income, long term care costs, asset protection 2.Spouse or Partner –Income replacement, remarriage, retirement income, asset protection 3.Descendants –Asset protection, divorce, spending, special needs, blended families

21. Spending TaxesCreditors Spending

22. Three Buckets of Assets Capital Assets Retirement Income Assets Legacy Assets

23. Capital Asset Taxation TimingTax Consequences PurchaseAfter Tax Income GeneratedOrdinary Income SaleCapital Gains Long term Short term Disposition at DeathFair Market Value at Date of Death Can get a step-up or step-down in basis

24. Retirement Income Assets TimingTax Consequences ContributionQualified - Before Tax Non-Qualified - After Tax GrowthTax-deferred DistributionsOrdinary Income Qualified – All ordinary income Non-Qualified – Exclusion ratio Disposition at DeathNo step-up

25. Legacy Assets TimingTax Consequences PurchaseAfter tax GrowthTax-Deferred DistributionsTax-Preferred Dispositions at DeathAutomatic Step-up in Basis

26. EPIC Retirement Spending Use Retirement Income Assets Efficient Use of Capital Assets Efficient Use of Legacy Assets

27. EPIC Estate Planning Use Retirement Income Assets as an Income Source for the Surviving Spouse Maximize Capital Assets at Death with Estate Inclusion to Receive Step-Up in Basis Use Legacy Assets for Income Tax-Free Death Benefit

28. Death TaxesCreditors Spending Death

29. Why Life Insurance is important? Periodic small gift transfers of premium can provide larger death benefits Income tax-free financial support for clients’ families upon their death Cash value – valuable tool if client needs to withdraw a portion for any reason Additional agreements may enhance the life insurance policy Agreements may be subject to additional costs and restrictions

30. EPIC TaxesCreditors Spending Death

31. Definition of an EPIC Estate Plan I want to maximize how live today –By tax-efficient spending In order to maximize what I give tomorrow –By protecting my family if an unexpected event happens –By passing my estate in the most tax-efficient manner possible –By protecting my legacy for my descendants –By turning tax dollars into charitable dollars

32. Other side of EPIC Estate Planning Another definition of an Epic ep·ic noun\ ˈ e-pik\ “a narrative poem in elevated language celebrating the adventures and achievements of a legendary or traditional hero.” The other side of EPIC Estate Planning is: –Estate planning is more than passing material wealth –It’s your client’s values, hopes, and dreams –It’s the memories your client creates Source: www.merriam-webster.com/dictionary/epic

33. An EPIC Approach Your Life. Your Legacy. Your EPIC.

34. An EPIC Approach

35. Make It EPIC! Any Questions? Securian Financial Group, Inc. www.securian.com Securities offered through Securian Financial Services, Inc., Member FINRA/SIPC. 4 00 Robert Street North, St. Paul, MN 55101-2098 1-800-820-4205 ©2014 Securian Financial Group, Inc. All rights reserved. A04652-0914 DOFU 09-2014 Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. One can lose money in this product. Guarantees are based on the claims-paying ability of the issuing insurance company. This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.