Los Angeles Alzheimers Assn'

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Los Angeles Alzheimers Assn.
A Time To Remember
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Capital GainsBypass Plan
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Sell income property, without the use of a 1031
tax-deferred exchange and eliminate the capital
gains tax upon the sale.
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Sell income property, without the use of a 1031
tax-deferred exchange and eliminate the capital
gains tax upon the sale.Increase your familys
income for life while reducing your taxes.
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Sell income property, without the use of a 1031
tax-deferred exchange and eliminate the capital
gains tax upon the sale.Increase your familys
income for life while reducing your
taxes.Freedom from agonizing management
responsibilities.
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Sell income property, without the use of a 1031
tax-deferred exchange and eliminate the capital
gains tax upon the sale.Increase your familys
income for life while reducing your
taxes.Freedom from agonizing management
responsibilities.A substantial tax deduction.
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Sell income property, without the use of a 1031
tax-deferred exchange and eliminate the capital
gains tax upon the sale.Increase your familys
income for life while reducing your
taxes.Freedom from agonizing management
responsibilities.A substantial tax
deduction.Preserve and transfer more of your
estate to your family while maximizing lifetime
benefits.
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Capital Gains Bypass Plan
Avoid Capital Gains Taxes More Spendable
Income Substantial Tax Deduction
Bypass Trust
Wealth Replacement Trust
Pass more to your family free of income and
estate taxes
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Bypass Trust
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Bypass Trust
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Sold
Bypass Trust
Avoids Capital Gains Taxes
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Sold
Bypass Trust
Income for Life
Avoids Capital Gains Taxes More Spendable
Income for Your Lifetime.
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Sold
Bypass Trust
Income for Life
Avoids Capital Gains Taxes More Spendable
Income for Your Lifetime. Substantial Tax
Deduction
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Sold
Bypass Trust
Income for Life
Avoids Capital Gains Taxes More Spendable
Income for Your Lifetime. Substantial Tax
Deduction Contribution to Charity When You
Pass Away
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Capital Gains Bypass Trust
Absolutely complies with Internal Revenue
code Section 664 (initiated in 1969)
Established to aid charities Increased
popularity due to the Reform Act of 1986
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The Capital Gains Bypass TrustMaximize your
lifetime benefits by
Avoiding Capital Gains Taxes Increasing your
spendable income Receiving a substantial tax
deduction Making a significant contribution to
charity
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Wealth Replacement Trust
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Survivorship Life Insurance
Wealth Replacement Trust
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Survivorship Life Insurance
Wealth Replacement Trust
Tax Savings
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Survivorship Life Insurance
Tax Savings
Wealth Replacement Trust
Full Value of Asset
Family
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John and Mary SmithsIncome Property
18 unit Apartment building Owned 20
years Original purchase price 56,000 Propert
ys Adjusted Cost Basis 100,000 Current
Value 1,000,000 Capital Gain 900,000
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Sale of Income Property
Sales Price 1,000,000 1,000,000 Cost
Basis (100,000) (100,000) Capital
Gain 900,000 900,000 Tax (33) 300,000 0 Rei
nvest 700,000 1,000,000 Income
8 56,000 80,000 24,000 more per
year!
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Wealth Replacement Trust
1,000,000 Replacement Insurance 170,000 (One
day premium) Tax Savings Generated by 234,000
Deduction 85,000 Net cost to replace value of
asset to family (paid from increase income from
trust) 85,000
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Estate Tax Consequences
Property Value in estate 700,000
Wealth Replacement 1,000,000 Survivorship
Life Insurance
Estate Taxes (50) 350,000
Estate Taxes 0
Net Proceeds to family 350,000
Net Proceeds to family 1,000,000
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Sale of Income PropertyUsing the Capital Gains
Bypass Plan
Save 300,000 in capital gains taxes.
Increase their spendable income by 43 every
year for the rest of their lives. Net cost to
replace 1,000,000 to their family is
85,000 Transfer the full value of the asset
to their family free of estate and income taxes
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Sale of Securities
Worth 100,000 100,000 Yield x 2 x
6 Income 2000 6000 3 times more!
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Advantages of the Capital Gains Bypass Plan
Avoid capital gains taxes Increase your
spendable income Receive a substantial tax
deduction Preserve and transfer more of the
value of your estate to your family Make a
significant future gift to charity
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Los Angeles Alzheimers Assn.
L.A. Alzheimers Association Charitable Estate
Planning Dept. 5900 Wilshire Blvd., Suite
1710 Los Angeles, California 90036 Phone
213.938.3379