© Tim Voorhees, JD, MBA, 1990-2011Phone: (800) 447-7090 Email: Info@vfos.com

New Zero Tax Planning Opportunities

8 Highly Practical Topics

• #1 Why Public Policy Promotes Zero Tax Planning

• #2 Why Zero Tax Planning Is More Attractive Than Ever

• #3 Why Everyone Needs a Plan With Integrated Financial and Tax Solutions

• #4 Why Most Clients Prefer to Start With a Tactical Plan

• #5 Which Sample Deliverables Are Best • #6 How to Access Turnkey Deliverables• #7 How to Equip Referral Sources • #8 How to Take the Best Next Steps

#1 Why Public Policy Promotes Zero Tax

Planning

…. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, however, I drive the extra mile and drive outside the city of Washington, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing a useful social service by doing so. For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.”  --U.S. Supreme Court Justice Louis D. Brandeis

#2 Why Zero Tax Planning Is More

Attractive Than Ever

Prepare for New Opportunities

• Estate tax exemption will likely drop to $1 million on 1/1/2013.

• Exploit new opportunities to move assets to irrevocable trusts 

• Help clients fund the most powerful and popular irrevocable trusts

Implement More Trusts

• Learn ways to super-charge trust strategies • Use web-based software to produce

customized client illustrations • Present marketing materials for business

owners, retired couples, and elderly clients• Serve attorney referral sources more

effectively• Provide trust funding services to attorneys• Position yourself as the quarterback on

every case

#3Why Everyone Needs a Plan With Integrated

Financial and Tax Solutions

8,000,000+ MillionairesServed by Financial

Planners

800,000+ Deci-Millionaires

Served by MFOs

80,000+ Centi-MillionairesServed by MFOs &

SFOs

900+ BillionairesServed by

SFOs

MFO = Multi-Family Office

SFO = Single Family Office

$10,000,000+ Net Worth = Deci-millionaire

$100,000,000+ Net Worth = Centi-millionaire

13

The Family Office Wealth Counselor Sees All Sides

#4 Why Most Clients Prefer to Start With a

Tactical Plan

© Tim Voorhees, JD, MBA 1996-2011

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1031 Exchange 0 0 3 0 0 0 2 0 2 0 1 1 1 2 2 1 2 0 0 2 01035 Exchange 0 0 3 0 3 0 2 0 2 0 1 1 1 1 2 1 3 1 1 2 3402(e) Rollover 0 0 0 3 0 0 0 0 2 0 0 0 0 0 0 0 0 0 3 2 0412(i) with sale to Family Entity 0 3 3 0 0 3 0 1 0 0 0 2 2 2 1 0 0 1 3 1 0412(i) with rollout to Participant 0 3 3 2 0 0 3 1 0 0 0 1 1 1 1 0 0 0 3 1 0Aircraft Acquisition Strategy 3 0 0 0 2 1 0 1 1 0 2 0 1 0 3 2 1 0 0 3 0Accounts Receivable Financing 0 0 3 3 0 1 3 3 0 0 1 1 2 2 2 0 2 0 0 1 0Asset Allocation 0 0 0 0 1 0 3 0 0 0 0 0 0 0 1 0 3 0 0 1 0Charitable Gift Annuity, Deferred 3 0 2 3 3 3 2 3 3 3 3 1 2 1 1 2 2 1 1 0 0Charitable Gift Annuity, Immediate 3 0 1 3 3 3 0 2 3 2 1 1 2 1 1 2 2 1 1 0 0Charitable Gift Subject to Life Estate 2 0 0 0 0 3 0 1 3 1 3 1 2 1 1 2 2 1 1 2 1Charitable Limited Liability Company 3 0 0 0 3 3 0 3 3 2 2 1 2 2 2 3 2 1 1 1 1Charitable Remainder Unitrust, Standard (SCRUT) 2 0 1 1 3 3 2 1 2 0 3 2 1 0 1 3 2 0 0 1 0Charitable Remainder Unitrust, Standard with Wealth Replacement 2 0 1 1 3 3 1 2 2 1 3 2 1 0 1 3 3 0 0 1 0Charitable Remainder Unitrust, Net Income with Makeup (NIMCRUT) 2 0 1 1 3 3 2 2 2 1 3 2 1 0 1 3 3 0 0 1 0Charitable Remainder Unitrust, with Flip Provision (Flip CRT) 2 0 1 1 3 3 2 2 3 1 3 2 1 0 1 3 3 0 0 1 0Charitable Remainder Unitrust, with private stock redemption 2 0 1 1 3 3 1 2 3 1 3 2 1 3 1 3 3 0 0 1 0Charitable Remainder Annuity Trust (CRAT) 2 0 0 1 3 3 0 2 3 1 3 2 1 0 1 3 3 0 0 1 0Charitable Lead Annuity Trust, Grantor (GCLAT) 3 3 0 0 0 2 0 2 0 3 2 1 1 0 1 3 1 0 0 1 0Charitable Lead Annuity Trust, Nongrantor (CLAT) 0 0 0 0 0 3 0 2 0 3 2 1 1 1 0 3 1 0 0 1 0Charitable Lead Annuity Trust, Super CLAT 3 0 0 0 2 3 0 2 0 3 2 1 1 0 0 3 1 0 0 1 0Charitable Lead Unitrust, Grantor (GCLUT) 3 3 0 0 0 2 0 2 0 3 2 1 1 0 1 3 1 0 0 1 0Charitable Lead Unitrust, Nongrantor (CLUT) 0 0 0 0 0 3 0 2 0 3 2 1 1 1 0 3 1 0 0 1 0Common Trust Fund 3 3 1 0 3 0 2 1 2 1 1 0 1 0 1 0 2 0 0 1 0Costless Collar 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Defined Benefit Pension Plan 0 3 3 0 0 0 3 3 0 0 1 1 1 1 3 0 2 0 0 1 0Disability Income Trust 0 3 3 0 0 0 3 2 0 0 1 0 0 1 3 0 2 0 0 0 0Dynasty Trust 0 0 0 0 0 3 0 3 0 0 0 2 1 2 0 0 0 0 0 2 0Education Trust 0 0 0 0 0 1 1 2 0 0 0 2 1 0 0 0 0 0 0 0 0Leveraged Employee Stock Ownership Plan with Synthetic Equity 0 3 1 1 3 3 1 2 2 1 1 2 1 3 0 0 3 0 0 2 3

Key3 indicates a primary benefit. A major reason that someone would implement this strategy.2 indicates a secondary benefit--not the only reason but a plus in the decision-making process1 indicates an ancillary benefit--not a significant positive or negative factor.0 indicates the benefit is irrelevant to the strategy or the strategy may actually be a detriment.

Tools/Benefits Grid (partial)

Dynasty Trust

Insurance as an Asset Class

Life Settlements

Insurance Trust Review

Premium Financing

Capacity Capture

Insurance Warehousing

Annuity Income Maximization

IRA Maximizer

Sale of Partnership Interests to a Family Grantor Trust

Financed Indexed UL

Shadow Account Arbitrage

Private Split Dollar

Zero Tax Estate Planning

Credit Shelter Trusts with Life Insurance

Intellectual Property Strategy

Qualified Money Conversion

Defined Benefit Combo

Equity Appreciation Sharing

Cost Segregation Study

Captive Insurance Company

Tax-Efficient Squeeze Freeze

Popular Strategies in 2011

Illustrate Advanced Trust Design Techniques

A) Annuity Arbitrage. Transfer extra wealth to heirs tax-efficiently

B) Leveraged ILIT. Facilitate the tax-efficient funding of premium financing strategies

C) IDIT with Insurance. Monitor cash flows and inheritance amounts year-to-year

A) Annuity Arbitrage

TAX ADVICE DISCLOSURE 

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

$1 Million Annuity or IRA Value

5. Benefits afterEstate tax

B) Leveraged ILIT

TAX ADVICE DISCLOSURE 

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

C) IDIT with Insurance

TAX ADVICE DISCLOSURE 

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

Tim Voorhees, JD, MBAFamily Office Services

18831 Von Karman Ave.Suite 150

Irvine, CA 92612(949) 878-9400

#5 Which Sample Deliverables Are Best

#6 How to Access Turnkey Deliverables

for….• Generating More Fee Income• Implementing More Investment and Insurance Cases• Documenting More Gifts for

Charities• Consistently Collecting More Positive Client Satisfaction Surveys

Training/Coaching

Marketing

Planning/Production Tools

Administrative Workflows

Hi-Tech, Hi-Touch Cornerstones

Coaching

40 Resources Available to Channel Members & Allied Advisers

Adviser

Case Planning

20) Opportunity Conversations

21) Tactical Plans ($1000 - $5000 value)

22) Comprehensive Plans

23) Summary Blueprints (2)

24) Family Retreat and Wealth Statement ($3500 value)

25) Financial Check-up ($3500 value)

26) Value Proposition Letter ($1000 value)

Admin

Services

27) Downline Adviser Program

28) Semi-Exclusive Territory

29) Transferable Membership

30) Custom Web Site

31) Deliverables Link

32) Best Practices Documents

33) Login for vTasker case tracking

34) Login for vBlueprint.com software

35) Custom strategic development plan

36) Custom website to track expected gift revenue

37) Guidance in developing a planned giving committee

38) Custom videos for donors

39) Custom brochures for donors

40) Custom training workshops for donors

Adviser

Marketing Produ

cts and

Services

1) Custom Presentation Materials Package

2) Strategy Flyers

3) One Minute Advisor® Video Program

4) Client Brochures

5) “Soft Data” Questionnaires

6) “Hard Data” Fact-finders

7) Client Engagement Brochures

8) Sales Webinars to Help Engage Clients

9) vBlueprint Online Strategy Illustrator

10) Alllied Adviser Marketing Webinars

Adviser

Training

11) Best Practices Workshop

12) Best Tools Workshop

13) Best Portfolios Workshop

14) Best Legacy Workshop

15) Live Technical Webinars

16) Channel Adviser Study Group

17) Newsletters

18) Recorded Video Library

19) Coaching

1)      Custom Presentation Materials Package 2)      Strategy Flyers 3)      One Minute Adviser® Video Program 4)      Client Brochures 5)      “Soft Data” Questionnaires 6)      “Hard Data” Fact-finders 7)      Client Engagement Brochures 8)      Marketing Seminars and Webinars 9)      vBlueprint® Online Strategy Illustrator 10)   Allied Adviser Marketing Webinars

A. Marketing

11)   Best Practices Workshop 12)   Best Tools Workshop 13)   Best Portfolios Workshop 14)   Best Legacy Workshop 15)   Live Technical Webinars 16)   Channel Adviser Study Group 17)   Newsletters 18)   Recorded Video Library 19)   Coaching

B. Training

Deliverables 20)   Opportunity Conversation Summaries 21)   Tactical Plans 22)   Comprehensive Plans 23)   Summary Blueprints 24)   Family Retreat and Wealth Statement 25)   Financial Check-up 26)   Value Proposition Letter

300 Tools200 ServicesNumerous Benefits

C. Case Planning

Illustrate Advanced Trust Design Techniques

1)Annuity Arbitrage. Transfer extra wealth to heirs tax-efficiently

2)Leveraged ILIT. Facilitate the tax-efficient funding of premium financing strategies

3) IDIT with Insurance. Monitor cash flows and inheritance amounts year-to-year

4)Hundreds of other plans available.

30)   Custom Web Site 31)   Deliverables Link 32)   Best Practices Documents 33)   Client Login for vTasker case tracking 34)   Adviser Login

D. Admin Resources

Training/Coaching

Marketing

Planning/Production Tools

Administrative Workflows

Hi-Tech, Hi-Touch Cornerstones

Coaching

#7 How to Equip Referral Sources Estate tax practitioners need to know how to

build the following concepts into estate plans:

• Income tax plans• Business transition plans• Business formation design/drafting• Asset protection• Will contest prevention• Legacy planning to equip heirs• Trust planning• Special needs trust design/planning

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#8 How to Take the Best Next Steps

• Attend digest training. See ZeroTaxPlan.com

• Request links. Email info@vfos.com.

8 Highly Practical Topics

• #1 Why Public Policy Promotes Zero Tax Planning

• #2 Why Zero Tax Planning Is More Attractive Than Ever

• #3 Why Everyone Needs a Plan With Integrated Financial and Tax Solutions

• #4 Why Most Clients Prefer to Start with a Tactical Plan

• #5 Which Sample Deliverables Are Best • #6 How to Access Turnkey Deliverables• #7 How to Equip Referral Sources • #8 How to Take the Best Next Steps

Disclaimer

Family Office Services Inc. and Copenbarger Voorhees LLP do not give tax, accounting, regulatory, or legal advice to its clients unless clients have a current engagement defined in a signed retainer agreement. Clients must consult with advisers regarding the tax, accounting, and legal implications of these proposed strategies before any strategy is implemented. The effectiveness of any of the strategies described will depend on a client’s individual situation and on a number of complex factors. Nothing in this presentation is intended to offer securities or investment advice. Any discussion in this presentation relating to tax, accounting, regulatory, or legal matters is based on our understanding as of the date of this presentation. Rules in these areas are constantly changing and are open to varying interpretations.

© Tim Voorhees, JD, MBA, 1996-2011

Phone: 800-447-7090 Fax: 866-447-7090Email: info@vfos.com

Family Office Services, Inc.

Tim Voorhees, JD, MBADave Holaday, ChFC