Planting seeds
for the future
Balancing retirement income
security and wealth transfer
Presenter Name
Presenter Title
March 18, 2016
©2007 Lincoln National Corporation
LFD0705-1421
Through a lifetime of hard work, planning and
investing, you have built assets to use and enjoy.
And while you may be primarily focused on securing
your retirement income, planning your estate needs
to be an integral part of that goal. By balancing these
two goals, you can create a strategy that can both
help you maintain your lifestyle as long as you live
and ensure the remainder of your estate transfers to
the those you care about most. . .
©2007 Lincoln National Corporation
LFD0705-1421
Agenda
The right balance
Tools for managing and distributing wealth
Steps to building an estate plan
Will there be an estate tax
Some planning solutions
©2007 Lincoln National Corporation
LFD0705-1421
It begins with the right balance
Income Management
Variable expenses
usually include
travel, leisure
activities, gifts, etc.
Fixed expenses
include
mortgage/rent,
utilities, monthly
healthcare and
prescription costs,
and other regular
and recurring bills.
Wealth transfer is
assets designated
for your heirs or
charity.
Healthcare assets
cover any expenses
beyond routine
prescriptions and
doctors’ bills, such as
an emergency and
long-term care.
Emergency/
opportunity funds
are immediate cash
for emergencies you
may face or financial
opportunities you
want to explore.
©2007 Lincoln National Corporation
LFD0705-1421
Tools for managing and
distributing wealth
Will
Durable Power of Attorney
and Health Care Directive
Trusts
Life Insurance
Your Team
©2007 Lincoln National Corporation
LFD0705-1421
Steps to building an estate plan
Establish
your
goals
©2007 Lincoln National Corporation
LFD0705-1421
Steps to building an estate plan
Establish
your
goals
Do the
groundwork
©2007 Lincoln National Corporation
LFD0705-1421
Steps to building an estate plan
Establish
your
goals
Do the
groundwork
Account for
liquidity
©2007 Lincoln National Corporation
LFD0705-1421
Steps to building an estate plan
Establish
your
goals
Do the
groundwork
Account for
liquidity
Focus on
taxes
©2007 Lincoln National Corporation
LFD0705-1421
Steps to building an estate plan
Establish
your
goals
Do the
groundwork
Account for
liquidity
Focus on
taxes
Plan for
extending
your
legacy
©2007 Lincoln National Corporation
LFD0705-1421
Will there be an estate tax?
Federal estate tax exclusions and rates
Year
Exclusion
Amount
Minimum tax
rate on
Maximum tax
rate
2006
$2,000,000
46%
46%
2007
$2,000,000
45%
45%
2008
$2,000,000
45%
45%
2009
$3,500,000
45%
45%
2010
N/A
N/A
N/A
2011
$1,000,000
41%
55%
There are no federal estate taxes in 2010. On January 1, 2011, the tax law is scheduled to revert to
the $1 million exclusion, unless legislation is enacted.
©2007 Lincoln National Corporation
LFD0705-1421
Some planning solutions
Survivorship Standby Trust
Family Trust Purchasing Life Insurance
Spousal Lifetime Access Trust
©2007 Lincoln National Corporation
LFD0705-1421
Survivorship Standby Trust
During Husband’s Life
At First Death
Irrevocable Life
Insurance Trust
Owner
Transfer of Policy
(by Contract or Gift)
At Survivor’s
Death:
Trust
Beneficiaries
(i.e., children)
©2007 Lincoln National Corporation
LFD0705-1421
Survivorship Standby Trust
Taxation
How to implement
©2007 Lincoln National Corporation
LFD0705-1421
Family Trust Purchasing
Life Insurance
During Life of Surviving Spouse
Spouse
Receives income
from marital trust,
personal holdings,
pensions, Social
Security, etc.
Consider reducing
or stopping income
B Trust
Trustee reallocates
income-producing
property and
purchases life
insurance or annuity
with trust assets
Premiums
Death
Benefits
Life
Insurance
Company
At Death
Children as
Trust Beneficiaries
Distributions
©2007 Lincoln National Corporation
LFD0705-1421
Family Trust Purchasing
Life Insurance
Considerations for surviving spouse
Considerations for beneficiaries
Tax considerations
How to implement
©2007 Lincoln National Corporation
LFD0705-1421
Spousal Lifetime Access Trust
Grantor
(e.g., husband)
Trust
Beneficiaries
(i.e., children)
Irrevocable Life
Insurance Trust
Remainder
Gift of Premium
Distributions from Trust
5&5
Ascertainable Standard
Sprinkling Power
Grantor’s
Spouse
(e.g., wife)
©2007 Lincoln National Corporation
LFD0705-1421
Spousal Lifetime Access Trust
Considerations
Taxation
How to implement
©2007 Lincoln National Corporation
LFD0705-1421
Planting seeds for the future
©2007 Lincoln National Corporation
LFD0705-1421
Important disclosures. Please read.
Insurance company products are issued by Lincoln Financial Group® affiliates.
Products and features are subject to state availability.
This material was prepared to support the promotion and marketing of
insurance company products. Lincoln Financial Group® affiliates, their
distributors, and their respective employees, representatives, and/or
insurance agents do not provide tax, accounting, or legal advice. Any tax
statements contained herein were not intended or written to be used, and
cannot be used for the purpose of avoiding U.S. federal, state, or local
tax penalties. Please consult your own independent advisor as to any tax,
accounting, or legal statements made herein.
©2007 Lincoln National Corporation
Lincoln Financial Group is the marketing name for Lincoln National Corporation
and its affiliates.
Affiliates are separately responsible for their own financial and contractual
obligations.
www.LFG.com
©2007 Lincoln National Corporation
LFD0705-1421