Wednesday:
The top two (2) meeting sites requested for our Impact U 2009 Spring meeting location were as follows:
1. South Beach (Miami Beach)
2. Tampa
(Please vote for your final meeting site choice below; one location only please)
Final Vote: _______________________________________
The ballot is organized into the following sections:
• New Enhancments Suggested at Fall Meeting in Las Vegas
• Ballot Items that Received Votes but Did Not Pass for Spring 2008 Release
• Ballot Items To Be Removed If No Votes Received in this ballot
• Ballot Details
( (This symbol indicates that further explanation is included in the Ballot Details.)
|New Enhancements Suggested at Fall Meeting in Las Vegas |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|PlanLab My Site/Client File/Wherever Appropriate |
| |90 |Add a link to the Social Security calculator site from|40 |Same as Item 95 for Detailed Planning |
| | |within the details screen of Social Security | | |
| |91 |Ability to save PlanFacts desktop cases |200 | |
|Detailed Planning |
| |92 |Add an additional checkbox to Transactions/Retirement |200 |Requires checkbox plus input for percent. Plus need to |
| | |Distributions as “take a portion as 72t distributions” that is | |prompt for when to stop, this will probably require a few |
| | |shown If one of the three safe-harbor methods are selected. If | |more new inputs to determine if we automatically stop at |
| | |that is checked, then the percent to apply would need to be | |5yrs/age 59 ½ or some other date. |
| | |prompted and when it should start and stop(at least age 59 ½ and 5| | |
| | |years); what is not applied to 72t will be distributed as if this | | |
| | |option were not selected. | | |
| |93 |Make FLP reflect the properties (growth, dividends, etc) of the |NA |With additional income prompts of 2008R1, is this item |
| | |assets transferred into it. | |still needed? |
| |94 |Ability to print the Scenario Comparison from the Manage Scenarios|100 |This gives the ability to compare any two scenarios, not |
| | |screen. Printed format would be similar to the printed page in the| |just a proposed to current. |
| | |Executive Summary for ETA. | | |
| |95 |Add a link to the Social Security calculator site from|20 |Same as item 90 for PlanFacts |
| | |within the details screen of Social Security | | |
| |96 |Add two additional sets of inputs for state death taxes today. |500 |This would allow for different assumptions concerning state|
| | | | |death taxes for the current plan today and for the other |
| | | | |scenarios. |
|New Enhancements Suggested at Fall Meeting in Las Vegas |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|Detailed Planning |
| |97 |Whenever you click on an add prompt for any data entry (assets, |650 |This will address many concerns and discussions in the past|
| | |liabilities, retirement plans, income, insurance, etc.) | |about data entry. |
| | |If this is current situation and no scenarios have been created | |This should make it much easier to correct an account after|
| | |for this account, no additional prompts | |it has been created. |
| | |If this is a scenario, or the current situation and there is at | |After several scenarios have been prepared, it is learned |
| | |least one scenario, then an additional selection will appear: | |that one asset was omitted or entered incorrectly, this |
| | |add to this scenario only – the default | |makes that an easy fix. |
| | |add to all scenarios | |This ability is especially important to a home office |
| | |Add to all scenarios and the current situation | |preparer, when the agent sends additional info. |
| | | | |This is one ballot item that could benefit almost every |
| | | | |user of PlanLab, and has been the most frequently requested|
| | | | |addition |
| |98 |Add an additional choice to Transactions/Retirement Plan |90 | |
| | |Distributions of “Lump Sum Distribution.” It would only need the | | |
| | |start date (no end date necessary) | | |
| |99 |Illustrate in ledger fashion the first mortgage on primary |100 |New on-screen ledgers in 2008r1 partially addresses this |
| | |residence. An additional printed ledger similar to the Liability | |issue. |
| | |ledgers. | | |
| |100 |Add the ability to print the Cash Flow Snap Shot. |200 |This would print as a single page with the Clients Names at|
| | | | |the top followed by the Scenario Name. It would be the |
| | | | |three graphs, all on one page, followed by a short |
| | | | |disclaimer. This would be used by an advisor to show how |
| | | | |the final scenario was derived without having to print all |
| | | | |of the intervening scenario results. |
|ETA |
|New Enhancements Suggested at Fall Meeting in Las Vegas |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
| |101 |Advisor summary of ‘Hot Points’ and embedded transactions. |NA |Need list of points (rules) to use to determine ‘hot point’|
| | |This would print as part of the print options, so that it could be| |Need to determine how the advisory summary will be |
| | |based on the same result set used to produce the presentation | |associated with a given printed presentation for future |
| | |printed. | |reference |
| |102 |Add the ability to save multiple “Favorites” for Print Options |168 |A reasonable limit of Favorites needs to be determined. |
| | |On the Customize template, allow the saving of the current | |(It is not possible to apply one favorite globally to all |
| | |customized settings and name it. This named template would then be| |products, as pages and names of pages vary.) |
| | |available on the regular template screen. | | |
|WDA |
| |103 |Advisor summary of ‘Hot Points’ and embedded transactions |NA |Need list of points (rules) to use to determine ‘hot point’|
| | |This would print as part of the print options, so that it could be| |Need to determine how the advisory summary will be |
| | |based on the same result set used to produce the presentation | |associated with a given printed presentation. |
| | |printed. | | |
| |104 |Add the ability to save multiple “Favorites” for Print Options |40* |A reasonable limit of Favorites needs to be determined. |
| | |On the Customize template, allow the saving of the current | |(It is not possible to apply one favorite globally to all |
| | |customized settings and name it. This named template would then be| |products, as pages and names of pages vary.) |
| | |available on the regular template screen. | |*Requires #102 |
|New Enhancements Suggested at Fall Meeting in Las Vegas |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|QPDA |
| |105 |Add a new objective that is a combination of Lump Sum and Using |300 |The net effects would be to provide a fuller illustration |
| | |Distributions. The Lump Sum page would be in front of the Using | |than the Lump Sum vs. IRA that is done in one page. |
| | |Distributions pages. Prompts would be almost the same as Using | |Different printout and ledger columns but use the same |
| | |Distributions for Life Insurance but would be comparing a lump sum| |values calculated for the other two objectives. |
| | |distribution with it. | | |
| |106 |Add description of each objective to aid advisors in selection. |200 |Template Help like done for ETA and RTD would provide an |
| | |Purpose and sales opportunities with each objective. | |excellent aid to the advisor in selecting objectives. |
| |107 |Add LTC insurance and treat premiums the same as other expense in |220 | |
| | |each objective that illustrates and prompts for other expenses. | | |
| | |Put basic policy entries values in the assumptions. Footnote where| | |
| | |the expenses have the LTC premiums included. | | |
| |108 |In Stretch IRA only, add a checkbox to say “Include Spouse’s IRA |110 |We need to determine how to treat the spouse’s IRA if they |
| | |Account.” If checked, then prompt for the spouse’s IRA account. | |turn 70 ½ prior to the client/participant dying (how much |
| | |When the client dies, add any distributions assumed to go to a | |detail will be printed relative to the spouse’s separate |
| | |spousal IRA to the value of the spouse’s IRA and apply the same | |IRA?) |
| | |distributions as now. | | |
| |109 |Ability to enter more than one qualified plan or separate a plan |NA |Nature of QPDA is to show one (or aggregated into one) |
| | |in to two qualified plan accounts. | |qualified plan. Needs more discussions on what function or |
| | | | |benefit is being sought before a design can be done. |
|Annuity Strategies |
| |110 |Add LTC insurance and treat premiums the same as other expense in |100 | |
| | |each objective that illustrates and prompts for other expenses. | | |
| | |Put basic policy entries values in the assumptions. Footnote where| | |
| | |the expenses have the LTC premiums included. | | |
|ETC |
| |111 |Add the ability to print the three “Needs Over Time” graphs for an|200 |ETC does not have a good answer to, “How will the estate |
| | |ETC case. | |tax legislation possibilities affect my plans?” |
|Ballot Items that Received Votes but Did Not Pass for Spring 2008 Release |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|PlanLab My Site/Client File/Wherever Appropriate |
| |8a |Ability to easily prepare a presentation for someone else. Web |280 |For the PlanFacts fact finders NOT including BC (On |
| | |only – PlanFacts | |Financial Ballot) |
| | | | | |
| |73 |GST Calculator |250 |( A simple calculator to calculate the amount necessary to |
| | | | |make a GST and the GSTT for a direct gift. No print. |
|Detailed Planning |
| |17 |Add existing life insurance to any scenario |48 |Would work similar to other assets – it would not |
| | | | |automatically be added to the Current Situation – it would |
| | | | |have to be added to all scenarios manually. |
| | | | |Not needed if item 97 approved |
| |18 |Add existing Trusts to any scenario |48 |Would work similar to other assets – it would not |
| | | | |automatically be added to the Current Situation – it would |
| | | | |have to be added to all scenarios manually. |
| | | | |Not needed if item 97 approved |
| |19 |Ability to depreciate real estate property |250 |Percentage of cost basis reduced each year. (same dollar |
| | | | |amount reduction each year., but not below zero) Growth or |
| | | | |appreciation would have to be re-labeled “Net growth” |
| | | | |throughout prompts and reports. Would affect gain on sale |
| | | | |of asset. Amount of depreciation each year would be used to|
| | | | |reduce taxable income for the year. (This is an expanded |
| | | | |version of a prior ballot item that had 200 points.) |
| |21 |Ability to input income items with a schedule |120 |All income assets and assets that now have the option to |
| | | | |enter income as a dollar amount. |
|Ballot Items that Received Votes but Did Not Pass for Spring 2008 Release |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|Detailed Planning |
| |27a |Default every asset to a reasonable investment category so that no|40 |Currently an investment category that really isn’t correct |
| | |selection is necessary (now it is a blank and something must be | |must be selected since it cannot be blank – confusing for |
| | |selected, even when it is not going to be used, such as in ETA. | |clients and advisors. It does not make sense to ask |
| | |(Designed to address the “investment category” default issue for | |investment category for a fixed annuity. |
| | |ETA users) | | |
| |29 |Ability to remove – delete --- unwanted accounts from the desktop |50 |Concerns especially for home offices that are running many |
| | | | |plans for advisors |
| |36 |Add NIMCRUTs |400 |( Prompts similar to the CRUT but would have the ability to|
| | | | |indicate a change in the trusts investments (as to income |
| | | | |earnings). The income paid out would automatically |
| | | | |“make-up” for amounts income not previously earned and |
| | | | |paid. Needs income and appreciation rate for the trust and |
| | | | |the ability to change it once. |
| |40 |Creating a GRAT in the future |200 |( Asset or cash flow/rules |
| |76 |Add checkbox to bonds “reinvest automatically in similar bond on | |( Currently, at maturity date the bond is assumed redeemed |
| | |each maturity date” |100 |for cash at the matured value and deposited into the cash |
| | | | |account. This check box would allow it to continue as a |
| | | | |similar bond. |
|ETA |
| |42 |Print WDa cash flow reports as additional print option in ETA |80 |( Add WDA ledgers to ETA |
| | | | |(Must have a subscription to WDA) |
|Ballot Items that Received Votes but Did Not Pass for Spring 2008 Release |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|ETA |
| |47 |Amplify ETA flow charts -- When flowchart identifies a potential |120 | Also, assumption used for ownership changes |
| | |problem, it needs more explanation that this may not be a problem,| |(Has the scope or need of this feature been changed by the |
| | |or show an additional footnote. (explain RED outlines) | |new Executive Summary?) |
| | | | |*Discuss the possibility of additional “Calculation Pages” |
| | | | |to supplement a presentation to explain how the numbers |
| | | | |were calculated. This would not be for just flow charts, |
| | | | |but all calculations. This should be flushed-out better |
| | | | |with details for next ballot. |
| |48 |Annual Exclusion gifting impact Disclosure to avoid doubling up of|200 | ( Points based on a report stating the number of Annual |
| | |annual exclusion gifts | |Exclusions illustrated per year and included in Executive |
| | | | |Summary. Additional item and points if calculated and if |
| | | | |shown during the input. |
| | | | |Disclosure concerning doubling up of annual exclusion |
| | | | |between regular gifts and gifts used to pay life insurance |
| | | | |premiums. |
| |50 |Add diagnostic page that identifies salient results and potential |240 |Diagnostic page would not be included in pagination. |
| | |problems—an advisor’s page | |Information that identifies potential problems an advisor |
| | | | |needs to know. Points are based on information similar to |
| | |*Discuss: if template help added, it may be possible to print a | |data in Executive Summary, plus liquidity needs at each |
| | |dynamic version as an advisor’s report to annotate that | |death, will changes to utilize applicable credit better, |
| | |presentation. | |use of living trusts |
|Ballot Items that Received Votes but Did Not Pass for Spring 2008 Release |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|ETA |
| |88 |Roth vs. Traditional Comparison Calculator |250 |( See sample and details. |
| | | |web only; | |
| | | |400 |*Discussion of effects of PPA and 2010+ planning |
| | | |web + desktop |options—result of discussions may change the extent of this|
| | | | |calculator. |
|QPDA |
| |56 |Give a choice for the name to be either “Qualified Plan |50 |Option on Print Options screen |
| | |Distribution Analysis” or “IRA Distribution Analysis” | | |
|Annuity Strategies |
| |65 |Add life insurance similar to QPDA |240 | |
|Ballot Items To Be Removed If No Votes Received for this Vote |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|PlanLab My Site/Client File/Wherever Appropriate |
| |1a |PlanLab Web (no print) |225 |Hypothetical growth rate of an account |
| | |Calculator – Taxable Amount | |Year to begin distributions |
| | |Calculator – Tax Exempt Amount | |Deposits either one-time or annually up to distribution |
| | |Calculator – Tax Deferred | |date |
| | | | |Distributions starting at distribution date |
| | | | |Tax rate prior to distribution date |
| | | | |Tax rate after distribution date |
| | | | |Year-by-year schedule |
| | | | |For tax deferred - taxes distributions in excess of basis |
| | | | |pro-rata, FIFO or LIFO. |
| |1b |Add calculators (1a) to Desktop. Requires 1a. |100 | |
| |1c |Add print capabilities to (1a/1b) calculators (desktop and/or web)|100 |Requires 1a or 1b or both to be selected |
| |2 |Add Desktop Advanced Planning Techniques calculators to Web |150 |Quick Estate, QPRT, CRT, GRT, FLP, 72(t) |
| | |PlanLab . | | |
| |4a |PlanLab Web (no print) |40 |Enter age, sex, [table if more than one mortality table |
| | |Calculator – Life expectancy | |available] and the life expectancy would be given. |
| |4b |PlanLab Desktop (no print) |40 |Same as (4a) |
| | |Calculator – Life expectancy | | |
| |5 |Ability to import multiple “SnapShots” at one time. Desktop only. |30 |i.e., an advisor or office emails several account |
| | | | |snapshots, could they all be selected and imported with one|
| | | | |command instead of each snapshot being imported separately |
| |11 |Change limits to ages from 99 to 115 |100 |Becomes more important as retirement concerns are addressed|
| | | | |and the newer mortality tables go beyond 100 |
| |14 |Resource page for PPA (Summary of features of Pension Protection |80 |This would look like other presentation pages but would be |
| | |Act) | |text only. |
| |15 |RMD calculator |200 |( Calculate the RMD independent of an actual account. |
| | | | |Separate calculator from the 72t calculator. No print. |
| |16 |Summary list of transactions |80 |( list (simplified restatement of transactions input) |
|Ballot Items To Be Removed If No Votes Received for this Vote |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|Detailed Planning |
| |12 |Add group life insurance when there is no employer |40 |Group policies now must be associated with an employer and |
| | | | |end when employment ends. Group policies through |
| | | | |Associations, etc. may not have an employer association and|
| | | | |may end at a specified time or continue until death. |
| |22a |Assume that all trusts, especially GRUTs, CLUT, and CRUT or other |40 |( Currently, all trusts are valued on the anniversary date |
| | |unitrusts or annuity trusts, use the end of calendar year value | |of the trust being established. Therefore the annuity |
| | |for adjusting annuity payout. | |payout rate changes mid-calendar year. This can be |
| | | | |confusing since ledgers are illustrated as of the end of |
| | |(Change calculations) | |the calendar year. (Revision to footnotes could help with |
| | | | |the understanding if calculations are not changed. See |
| | | | |22b.) |
| |22b |Assume that all trusts, especially GRUTs, CLUT, and CRUT or other |5 |( Currently, all trusts are valued on the anniversary date |
| | |unitrusts or annuity trusts, use the end of calendar year value | |of the trust being established. Therefore the annuity |
| | |for adjusting annuity payout. | |payout rate changes mid-calendar year. This can be |
| | | | |confusing since ledgers are illustrated as of the end of |
| | |This is an alternate solution in lieu of 22a: Leave current | |the calendar year. Revision to footnotes will help with the|
| | |calculations the same (anniversary date valuation) | |understanding of what is happening. |
| |25 |Display property name with the mortgage input |10 |Mortgage tab doesn’t show the associated collateral |
| | | | |property’s name |
| |27b |Add an investment category of “Fixed Asset” |100 |Currently an investment category that really isn’t correct |
| | | | |must be selected since it cannot be blank – confusing for |
| | |(27a and 27b are two options designed to address the “investment | |clients and advisors. It does not make sense to ask |
| | |category” default issue for ETA users) | |investment category for a fixed annuity. |
|Ballot Items To Be Removed If No Votes Received for this Vote |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|Detailed Planning |
| |28 |Add a checkbox to proposed new insurance, trusts, and FLPs that |150 |Similar to the checkboxes of the pre-PlanLab ETA on the |
| | |would allow it to be “de-selected” for that calculation of the | |right side of the screen. This select de-select would be |
| | |scenario, but if you wanted to include it later you would not have| |valid for just the scenario in which it appears. |
| | |to re-enter | |Also needed for proposed life policies in FLPs, and |
| | | | |proposed DI and LTC policies. |
| |31 |Display numerical entries from right to left with commas |NA |In Detailed Planning |
| | | | | |
| | |*NOTE: this enhancement will be done with the browser independent | | |
| | |PlanLab sometime in 2008. | | |
| |34 |After an account is created the ability to un-check the married |200 |Must start over if married is accidently checked. Note: at |
| | |checkbox is disabled. Could it be enabled? | |some point there would be too many items of ownership to |
| | | | |easily reverse, but this could be eliminated or warning |
| | | | |message that all ownerships previously entered should be |
| | | | |re-examined. Warning would have to advise that Will |
| | | | |provisions may be changed. Also, that if the married |
| | | | |checkbox is re-checked, no ownership or will provisions |
| | | | |will be changed. Big potential problem if married is |
| | | | |unchecked and then re-checked – major difference may appear|
| | | | |from the original. Also, how would ETA and WDA that do not |
| | | | |accept unmarried clients handle this? See #46, ETA for |
| | | | |unmarried clients |
| |35 |Add transaction that pegs a set value at liquidation 1) mkt value |150 |( Easy transition from Business Succession Planning to |
| | |2) Fixed 3) fixed + x% per year | |Estate Planning and Retirement Planning |
| |37 |Add a Special Needs Trust option to Classic Trust |80 |Includes this as a choice (currently it could be entered as|
| | | | |the description) It would be referred to in the reports as |
| | | | |a “Special Needs Trust.” |
|Ballot Items To Be Removed If No Votes Received for this Vote |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|Detailed Planning |
| |39 |Add non-qualified deferred compensation income asset | |A variation of an income asset that labels everything as |
| | | |120 |deferred compensation instead of “Other Income.” |
|ETA |
| |43 |Add the ability in PlanFacts Quick Estate to enter the rates for |40 |Currently defaults, without option to override, to 4% and |
| | |Probate and Administrative expenses | |1%. |
| |46 |ETA for Non-Married -- Add ability to run ETA on client A OR |440 |Extensive changes to database and print option rules. How |
| | |client B for non-married clients. Print ETA as if the client | |would the user know how the underlying “married” |
| | |chosen were a single individual. | |assumptions have or have not been changed? Some of the |
| | | | |items that will have to considered: Soc. Sec. assumptions, |
| | | | |settlement incomes, ownership of assets used as gifts |
| | | | |(possible gift taxes), cash flow and paying expenses!!!, |
| | | | |additional will set to include surviving non-spouse as a |
| | | | |category with spouse and other, assets going to trusts and |
| | | | |the donor, cash flow restrictions, income tax assumptions, |
| | | | |different states of residence, will order of death always |
| | | | |be that the non-spouse survives? |
| |49 |Add the ability to automatically show matching gifts for proposed |275 |Similar, although not identical to the behavior in the old |
| | |gifted premiums | |desktop software. |
|WDA |
| |52 |Add Print Template Help for PlanLab version similar to the Help |120 |Clicking on a Preset Presentation will show thumbnails of |
| | |Pages for Retirement Test Drive | |all the pages normally in that template. Clicking on a |
| | | | |page, shows a larger version of the page with the contents,|
| | | | |purpose, uses, sales opportunities, and how it is used to |
| | | | |transition between pages, and the type of client or advisor|
| | | | |it was designed to appeal. |
|Ballot Items To Be Removed If No Votes Received for this Vote |
|Vote |No. |Enhancement/Feature Change |Points |Comments |
|QPDA |
| |53 |Add ability to select annuity settlement option as a distribution |100 |Note: NAVA is preparing a report on the uses and importance|
| | |or the dollar amount of an annuity. | |of annuitization options. This is the settlement option, |
| | | | |not annuity method as defined in 72(t). This will be |
| | | | |limited to Retirement Plan Distributions and Using |
| | | | |Distributions for Life Insurance modules And applied just |
| | | | |to Participant. |
| |58 |Re-work wording of Early Distributions page exceptions as College |20 | |
| | |Expenses are an exception just for IRAs. | | |
| |59 |Add clarification in footnotes or assumptions to distinguish |10 |In the form of a footnote added. |
| | |between Annuity Method and Amortization Method making it very | | |
| | |clear that Annuity Method is not an annuitization requiring | | |
| | |premium taxes. | | |
| |60 |Add Print Help for PlanLab version similar to the Help Pages for |160 |Clicking on a Preset Presentation will show thumbnails of |
| | |Retirement Test Drive | |all the pages normally in that template. Clicking on a |
| | | | |page, shows a larger version of the page with the contents,|
| | | | |purpose, uses, sales opportunities, and how it is used to |
| | | | |transition between pages, and the type of client or advisor|
| | | | |it was designed to appeal. |
| |62 |Pay College expense module |400 |( Separate module to use non-penalty early distributions |
| | | | |from an IRA to pay college expenses. |
|Annuity Strategies |
| |64 |Limit distributions to a specific number of years |120 | |
| |66 |Add 72q objective |500 |Similar to 72(t) calculations as applicable for annuities |
|ETC |
| |68 |Add wording on the screens and the printed presentation to denote|20 | |
| | |that the estate is net growth after considering appreciation, | | |
| | |income, expenses, gifts, and premiums | | |
|Ballot Details |
| |15 |RMD calculator |200 |( Calculate the RMD independent of an actual account. |
| | | | |Separate calculator from the 72t calculator. No print. |
| |22b |Assume that all trusts, especially GRUTs, CLUT, and CRUT or |5 |( Currently, all trusts are valued on the anniversary date of |
| | |other unitrusts or annuity trusts, use the end of calendar year| |the trust being established. Therefore the annuity payout rate|
| | |value for adjusting annuity payout. | |changes mid-calendar year. This can be confusing since ledgers|
| | | | |are illustrated as of the end of the calendar year. Revision |
| | |Alternate solution: Leave current calculations the same | |to footnotes will help with the understanding of what is |
| | |(anniversary date valuation), but create better footnotes | |happening. |
“The unitrust must be valued at least once a year. That value may be determined on any day during the trust’s tax year; however, the same valuation date must be used each year. If a trust’s does not specify the date, the trustee must select the date and disclose on the tax return. The annual payment must be satisfied by year-end. For this reason, most trusts use December 31 or January 1 as the valuation date.” (Thanks to AXA for providing this information.)
ETA has always used the trust anniversary date, assuming the trust is established on the date of the recommendation. This was very typical of most software that was limited to “plan year” calculations. ETA continues to make this same assumption in PlanLab.
However, with monthly cash flow calculations and ledgers printed based on the calendar year, it is possible to make these calculations reflect a more typical beginning of year valuation. If this item is selected, then the accounting for the valuation date will be changed to beginning of the calendar year with the payout made, for unitrusts, at the end of that calendar year.
An alternative is to continue the present calculations and revise the footnotes to reflect this better. Below is an example:
[pic]
Change column heads: End of Year to Year; footnote each col. 1, 2, 3, 4
1- Grantor Retained Trust assumes it is established in September 2007. Values are illustrated in this ledger based on the calendar years.
2- Growth and income are assumed at 12% (effective annual interest, compounded monthly).
3- Distributed income is paid to the grantor following the anniversary of the trust each year. [Unitrust would say:" Distributed income based on 12% of the trust balance on the anniversary of the trust is paid to the grantor at that time."]
4- Trust balance at the end of the calendar year. It is equal to the beginning of the year balance, plus amounts added to the trust that year, plus the growth and income for the year, and less the distributed income.
5- All other footnotes after the first sentence of the current footnote 1 should remain without a reference number:
Grantor's estimated retained income interest of $0 reduces the value of the transfer. The estimated taxable gift of the remainder interest passing to the beneficiaries is based on Code Section 7520 assumed rate of 5.0% and distributed income paid annually. The actual value of the retained interest and the value of the gift depend on various factors. Consult your legal and tax advisors. This analysis assumes trust will generate sufficient cash flow to make distributions as indicated. If not, there may be additional costs necessary to secure the funds for the distributions. The grantor of the trust is taxed on the trust's income. This income tax liability is not reflected here.
Two different point values: the higher is for changing the calculations; the lower is for adding similar footnotes.
2
| |35 |Add transaction that pegs a set value at liquidation 1) mkt |150 |( Easy transition from Business Succession Planning to Estate |
| | |value 2) Fixed 3) fixed + x% per year | |Planning and Retirement Planning |
This would involve adding a transaction in Detailed Planning that would allow an asset to be liquidated at a defined value. Thus, the business or other asset that is subject to a buy-sell agreement could be assumed to be liquidated at death at a value that is consistent with the Buy-Sell Agreement. The liquidating value would be one of three values: (1) the market value – value of the asset at that time, (2) a fixed dollar amount – an amount specified in the agreement, or (3) a fixed dollar amount grown at a specified rate of interest. At the liquidation event, the asset would be considered sold for this amount, and the liquidation amount would be used for estate tax purposes and cash flow.
| |36 |Add NIMCRUTs |400 |( Prompts similar to the CRUT but would have the ability to |
| | | | |indicate a change in the trusts investments (as to income |
| | | | |earnings). The income paid out would automatically “make-up” |
| | | | |for amounts income not previously earned and paid. Needs |
| | | | |income and appreciation rate for the trust and the ability to |
| | | | |change it once. |
These six ledgers would become a Cash Flow Ledger section of Supporting Details available for the Current Situation, the Proposed Scenario, and the Proposed Scenario with New Life Insurance. In all this would be up to 18 additional ledgers. If only one ledger were offered, it would be the one titled Cash Flow Analysis.
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These ledgers only be available if the user had WDA permissions.
| |48 |Annual Exclusion gifting impact Disclosure to avoid doubling up of|200 | ( Points based on a report stating the number of Annual |
| | |annual exclusion gifts | |Exclusions illustrated per year and included in Executive |
| | | | |Summary. Additional item and points if calculated and if shown|
| | | | |during the input. |
| | | | |Disclosure concerning doubling up of annual exclusion between |
| | | | |regular gifts and gifts used to pay life insurance premiums |
This calculator would illustrate three ways that same amount would grow to retirement. To illustrate the tax advantages or disadvantages for contributions and the tax advantages and disadvantages at retirement, the amount of “Earnings” required is the input. A "pre-" and "post-" retirement tax rate could be entered with the before-tax earnings rate and the years until retirement. Since all the amounts can vary, the effectiveness of each method would be shown by the internal rate of return of the net value at retirement based on the amount of earnings (before taxes) required for each method. (This would be a unique feature in that IRRs are usually on the actual amounts invested. This calculation considers the earnings required before taxes, the increase in value over the years, and the after-tax benefits from the payout. In this manner, one number illustrates the effects of the different taxation.) The results would show the same IRR if the "pre-" and "post-" retirement tax rates were equal. Roth has the better IRR when the post retirement rate is higher and the Traditional has a better IRR if the pre-retirement tax rate is better. This is just a “mock-up” of how such a calculator could look.
Graph would not be visible on desktop version. This would not have any special print program and would not integrate into any account. If it printed, a page and graph similar to this screen with a text page explaining Roth and Traditional Plans.
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Final Ballot for 2008R2 Wealth Planning Suite Enhancements
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