Copyright 2007, CCH, A Wolters Kluwer Business. All Rights ... · – CRAT – Simple CRUT –...

ACS 90085478 (9/07)

Copyright 2007, CCH, A Wolters Kluwer Business. All Rights Reserved.

This "Participant's Guide" may not be reproduced or redistributed without

advance written permission from CCH, A Wolters Kluwer Business.

Copyright 2007

CCH, A Wolters Kluwer Business CCH ViewPlan Advanced Training Page 2

This “Participant’s Guide is one Component of

“Introduction To CCH ViewPlan”

There are four lessons in the “Introduction To CCH ViewPlan”

training course. You should take them in consecutive order

Each lesson has both a Participant’s Guide and an audio file (MP-3).

In order to take this lesson you will need the audio file as well as this

Participant’s Guide.

You will also need a copy of CCH ViewPlan loaded on your PC.

If you do not own CCH ViewPlan software,

Call a CCH sales rep at (800) 224-7477, extension 4622 or 4643 to

obtain a ViewPlan license

Copyright 2007


Introduction to ViewPlan Training

• Overview & Objectives– Class designed to

• Introduce new ViewPlan users to components and function of the Software

• Describe and practice common actions and best practices

– Upon completion, students should be able to use ViewPlan

• Materials & Methodology– Participants need

• MP-3 playback capability (e.g.. Windows Media Player)

• Participant’s Guide (printed)

• ViewPlan software (installed)

– Combination of audio lecture and hands-on exercises in live software• Audio classes – MP-3 files

– Listen to instructor’s lecture

– Periodically stop audio to complete hands-on exercises in live ViewPlan

• Participant’s Guide

– Illustrates instructor’s lecture

– Step by step instructions for hands-on exercises

– Take notes in white space

• Classes & Contents– Lesson 1- Introduction & “Quick Calculators”

• Basic vocabulary of ViewPlan

• Simple calculation of “Advanced Transfers”

– Lesson 2 - Quick, Simple Workflow Example • All the steps of using ViewPlan in very simple example

– Lesson 3 - Estate Details, Plans, Reports• Looking more closely at the major modules of ViewPlan

– Lesson 4 – Additional Features• Setting “Preferences”

• Annotating Reports

• Importing & Exporting data

• Etc.

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Course Objectives

• Upon Completion Lesson 1, you will know:– How to navigate through ViewPlan software.

– How to create and share client information and databases.

– How to quickly calculate the results of “Advanced Transfers”.

• Upon Completion Lesson 2, you will know:– How to enter and edit client data..

– How to view and interpret basic Reports.

– How to set up and view comparisons of “Plans”.

– How to create client presentations

• Upon Completion Lesson 3, you will know:

– How to enter and edit detailed client data.

– How to create “Plans”.

– How to edit “Plans”.

– How to find additional Reports.

– How to create your own Report Groups for use in Presentations.

• Upon Completion Lesson 4, you will know:– How to set up and view calculation audit trail.

– How to set user preferences.

– How to embellish reports with explanations and custom notes.

– How to export client information to and from ViewPlan databases

– How to obtain further help in using ViewPlan.

Copyright 2007


Lesson 3

Estate Details, Plans, Reports

• Estate Details– Assets & Liabilities

– Exercise 1 – Add Asset – Saturn 1

– “Advanced Transfers”

– Exercise 2 – Create a CRUT

– Estate Details Report

– Exercise 3 – Run The Estate Details Report

• Plans– Nature & uses of Plans

– Best Practices

– Tabs

– Exercise 4 – Sell Jupiter 2

– The simulation calculation process

• Error checking

– Lifetime Transfers

– Altering a Plan

• Quick Changes

– Exercise 5 – Add an ILIT

• Reports– Additional Reports

– Report Styles

– Special Reports

– Data Reports

– Exercise 6 – Look at Reports

• Presentation Wizard – Exercise 7 – Make a Report Group

• Review

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More Complex Cases

• Using the “Robinson” sample data we will explore some of

the detailed features of ViewPlan

– “Estate Details” module

• Break down net worth by specific assets & liabilities

– Much greater detail in describing each asset

• Client Preferences

• “Advanced Transfers”

• Etc.

– “Plans” module

• The Estate Planner’s Power Tool

• Test changes in:

– Terms of will

– Timing of deaths

– Asset growth rates

– Tax law assumptions

– Gifting strategy

– Use of “Advanced Transfer”

– “Estate Details”

– Etc.

– “Reports”

• More than just “Basic” types

– “Client Presentations” module

• Create your own “Report Groups”

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Estate Details – “Detailed View”

• Estate Details describe client’s circumstances• One set per Client

• Current information and future projections

– Quick Plan View

– Detailed View

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Estate Details – Assets & Liabilities

• Unlimited number of Assets for each Client

• 10 categories (vs. 5 categories in “Quick Plan View”)– Cash

– Securities

– Real Estate

– Business Interests

– Notes & Accounts Receivable

– Other Assets

– Family Limited Partnerships

– Life Insurance/ILIT

– Retirement Plans

• Includes Required Minimum Distribution Options

– General Liabilities

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• 10 tabs (for most Asset categories)

• General (different information for various asset categories)

– Value, basis, ownership, etc.

• Growth (increase or decrease in value)

• Liquidation (when; amount of proceeds)

• Proceeds (disposition of liquidation proceeds)

• Liabilities against asset

• Income ( dollar amount or % of asset value)

• Additions

• Expenses

• Withdrawals

• Gifts (specify recipient)

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Single entry tabs

– General

• Value

• Basis

• Ownership, etc.

– Growth

• Increase or decrease in value

– Liquidation

• Specify year of liquidation

• Amount of proceeds

– Proceeds

• Add to estate or

• Invest in existing asset

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• Multi-record Asset Detail data-entry tabs– The same interface we saw before

– Add a Client

– Add an Asset in “Quick View”

– Unlimited number of individual items

– Each described separately

– Used on these tabs:

– Liabilities

– Income

– Additions

– Expenses

– Withdrawals

– Gifts

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– Liabilities Tab

• Enter information regarding liabilities associated

with the current asset, such as mortgages against

real property

• Unlimited number of entries

• Click “Add” button

• Fill in dialog box

– Description

– Amount

– Annual Adjustment

– Income Tab

• Enter any income generated by the asset.

• Unlimited number of entries



– Description

» Reinvest in asset?

– Amount

» $ amount or

» % of asset value


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– Additions Tab

• Enter information regarding monies that

the clients will (or may) receive from

outside sources (excluding inheritances,

which are entered elsewhere).

• Excess earned income that is not spent by

the clients

– Expenses Tab

• Enter any expenses related to the asset

paid by client.

– Withdrawals Tab

• Amounts Paid out either as a lump sum

(such as a down payment on a house), for

a period of time (such as to fund a child’s

college education), or periodically for life

(such as to augment retirement plan assets

to meet retirement income needs).

– For all of these tabs:



– Description

– Amount


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• Gifts Tab

– Enter general information about a

planned gift or gifts with respect to

an asset. A gift can be set up to be a

one-time gift or part of an annual

gifting program.

– Unlimited number of Gifts

– Click “Add” button

• Dialog Box has 3 tabs

– General Tab

• Description

• 1 time gift or gifting program

• Annual adjustment

– Gift Profile Tab

• Type

– Individual, trust or charity

– GST trust?

• Tax profile

– Recipient Tab

• Specify beneficiaries

• Divide gift by %

• Link to “Beneficiaries”

Copyright 2007


Exercise 1 – Add an Asset

• Open ViewPlan & Select the “Robinson” Client

• Click on the Estate Details Icon

– In the “Detailed View”,

• Click once on “Assets & Liabilities”

• Click once on “Real Estate”

– In the Real Estate multiple record box

• Click the Add button

– In the Real Estate Add box

• Click on every tab

• Enter data for this asset

• Click on the Help button whenever

you have a question about what to enter

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Estate Details – Advanced Transfers

• Create unlimited

“Advanced Transfers”– Double-click

– Click “Add” button

– Select Category

• 13 categories

• General Tab– Description

– Donor or Type

– Value

• Annuity Tab

• Income Tab

• Unitrust Tab

• Installment Tab– Payout rate

– Payout frequency

– Payout disposition

– Duration

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Estate Details – Advanced Transfers

• Remainder Tab

• Recipients Tab

• Buyer Tab

• Payor Tab– Beneficiaries or Buyers

– Distribution %

• Trust Profile Tab

• Property Profile Tab

• Fund Profile Tab– Growth rates

– Income

• Exercise 2 - Create a CRUT

– In the Estate Details Detail View,

• Click once on “Advanced Transfers”

• Click once on “CRUT”

– In the CRUT multiple record box

• Click the Add button

– In the CRUT-Add box

• Click on every tab

• Enter data for this advanced transfer

• Click on the Help button whenever you have a question about what to enter or CRUTS in general

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Types of Advanced transfers

– CRAT

– Simple CRUT

– NIMCRUT

– NIMCRUT flip

– Pooled Interest Fund

– Simple CLAT

– Zeroed out CLAT

– Supertrust CLAT

– Simple CLUT

– Supertrust CLUT

– Simple GRAT

– IRS zeroed out gift GRAT

– Zeroed out gift GRAT

– GRUT

– QPRT

– GRIT

– Individual Private Annuity

– Defective Grantor Trust Private Annuity

– Premium on interest SCIN

– Premium on principal SCIN

– Defective Grantor Trust premium on interest SCIN

– Defective Grantor Trust premium on principal SCIN

– Installment sale to individual

– Installment sale to Defective Grantor Trust

– Charitable Gift Annuity

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Exercise 3 – Run The Estate Details Report

• After entering Estate Details information

• Print out hard copy of all (or some) data• Select “Estate Details Report” from “Tools” Menu

• Estate Details Report selection dialog box

– Select the details you wish to include

» Click on “Add” button

– You can get a complete report by

» Clicking on “Add All” button

– Change order with “Up” & “Down” buttons

– Click on “View” button

– Click on

• “Print Preview” or

• “Print” button

Copyright 2007


The Power of “Plans”

• You can have many alternative Plans for each client

• Each Plan triggers a complete simulation based on – Estate Details and

– Plan’s assumptions

• Plan Assumptions categories:

– Terms of the will

• “Scenarios”

– Timing of deaths

– Asset growth rates

– Tax law assumptions

• Federal

• State

– Inclusion of:

• Gifts

• Bypass trusts

• “Advanced Transfer”

– Number of years between generations

– Temporary override of “Estate Details”

information

Copyright 2007


The Uses of “Plans”

– Create a plan (“baseline”) reflecting

– Client’s current planning

– Most likely events

– Create alternative plans to

• Test your recommendations

– Changing terms of will

– Including “Advanced Transfer” or other planning strategies

– Different disposition of “Estate Details”

– Gifting strategies

– etc

• Avoid unanticipated effects of

– Tax law changes

– Earlier or later deaths

– Higher or lower growth rates

– Etc.

Copyright 2007


Creating a Plan

• Click on “Plans” icon on sidebar

• You can edit one of the Existing Plans• Click on “Add” Button

Or create a new one

• Click on “Edit” button

Or edit a copy of an existing Plan

• Click on “Copy” button

• Add or Edit Plan dialog box– General tab

• Give Plan a descriptive name

• Choose “Scenario”

– See page 52

• Timing of deaths

– Default is based on mortuary tables

• Growth

– Default is based on “Growth” tab

in “Estate Details”

– You can override with global rate

Copyright 2007


Creating a Plan

• Add or Edit Plan dialog box

– Tax Assumptions tab

• Federal law

– Use current law or

– Use your own

assumptions

• State law

– Use “Law Builder”

» Add

» Additions

» Deductions

» Credits

– Or specify tax

– Display Options tab

• Turn on or off:

– Gifts

– QFOB deduction

– Discounts

– Bypass trust

– Marital deduction trust

– “Advanced Transfer”

(Only one Advanced Transfer

can be included in each plan)

Copyright 2007


Creating a Plan

• Add or Edit Plan dialog box

– GST tab

• Number of years between generations

• Rate of growth between skips

– Override tab

• Change Estate Details information for this

Plan

– Does not actually affect Estate

Details

• Select any item

– Asset

– Beneficiary

– Etc

• Estate details dialog box will open

– Change existing information

– Most data can be changed

– New items cannot be added

– Green flags will appear

» Pointing to changes

Copyright 2007


Scenarios

– Single Scenario

– Used for all single Clients

– All To Spouse Scenario

– No will or “Sweetheart” will

– All assets pass tax free to surviving spouse

» (Unlimited Marital Deduction)

– One “Unified Credit” is lost

– Optimum Marital Scenario

– All to surviving spouse except:

» Amount equal to Unified Credit

» Usually passes through Bypass Trust

– No Marital Scenario

– No assets of first to die bequeathed to surviving spouse

» All subject to tax

– Variable Marital Scenario

– Fixed amount bequeathed to surviving spouse

» Balance to bypass trust or other beneficiaries

– Variable Bypass Before Taxes Scenario

– Specific bequest to entities other than surviving spouse

– Estate taxes on this bequest reduce amount of bequest

– Variable Bypass After Taxes Scenario

– Specific bequest to persons other than surviving spouse

– Estate taxes paid from surviving spouse’s portion of the estate

– Elected Tax Scenario

– Executor decides how much tax to pay at first death

– QTIP trust

Copyright 2007


Exercise 4 – Sell Jupiter 2 (page 1)

• Click on the Plans Icon

• In the Plans box

– Click once on “#3 OM Plan in 2035 & 40, w/3% Growth”

• We will consider this the Baseline

– Click on the Copy button

– Click on the Edit button

Copyright 2007



• In the Edit Plan box– Change the Description to

“Sell Jupiter”

– Click on the other tabs

• Click on the Help button

if the tab seems

confusing

– On the Override tab

• Click once on Assets &

Liabilities

• Click once on Real

Estate

• Click once on Jupiter 2

Copyright 2007



– In the Real Estate Override box

• Click on the Liquidation tab

• Click in the Liquidate Asset box

• Click OK (at the bottom of the box)

– Click OK to close the Edit Plan box

– Click Close to close the Plans box

• Select your new plan from the “View a Plan” Navigation box

Copyright 2007


Plans With Lifetime Transfers

• Plans can include transfers of wealth

to Beneficiaries during the Clients’

Lifetimes– Insurance

– Gifts

– Family Limited Partnerships

– Advanced Transfers

• On the Display Options tab of the

Edit Plan box– You choose whether to include Gifts in the

plan

– Advanced Transfer for the Plan

• There can be only one Advanced Transfer

in each plan

• Lifetime Transfers are displayed in a

separate box on the right side of the

Flow Chart

Copyright 2007


Making Quick Changes to a Plan

• To call up “Quick Change” menu• Right click or double-click anywhere on Report or

• Click on “Shortcuts” button

– Instantly Change:

• Which client dies first

• Federal tax law assumptions

• Growth rate assumptions

• Inclusion of

– Gifts

– QFOBI

– Discounts

– Bypass trusts

– Advanced Transfer

» Select another Advanced

Transfer

– Or call up “Edit Plan” dialog box

Copyright 2007


Simulation Error-Checking

• Whenever you select a Plan– ViewPlan runs a complete simulation

• Using current Estate Details

• Applying the current assumptions of the Plan

– During the simulation, ViewPlan checks for errors

• Asset values below $0

• Impossible transactions

• Etc.

– If ViewPlan detects any errors you will be alerted

• The “Warning” Icon will turn yellow and flash

• (if there are no errors the icon will be grayed out)

– To learn the nature of the error, click on the Warning Icon

• A text box will appear describing the error

• After you have clicked on the Icon it will stop flashing but it

will still be colored yellow

Copyright 2007


Exercise 5 – Add an ILIT to a Plan (page 1)

• Click on the Plans Icon

• In the Plans box– Make a copy of “#3 OM Plan in 2035 & 40, w/3% ”

– Edit your copy

• In the Edit Plan box– On the General tab

• Change the name to “Plan 3 with 3% ILIT”

– On the Display Options tab

• Check the “Include all gifts in plan” box

Copyright 2007



– On the Override tab

• Open Assets & Liabilities

• Open Life Insurance/ILIT

• Open Travelers Policy

– In the Life Insurance/ILIT Override box

• Click the button for “Create new ILIT”

• Click “OK” at the bottom of the

Life Insurance/ILIT Override box

– Click “OK” at the bottom of the Edit Plan box

– Click “Close” at the bottom of the Plans box

Copyright 2007



• Select your new plan from the “View a Plan” Navigation box

• The Warning icon will flash

– Click on the Warning icon

– Read the warning

– Click o the red X in the upper right corner to close the box

• Look at the Flow Chart for your new Plan– Is there a Lifetime transfer?

• Click on the Shortcuts button– Change one of the characteristics of your Plan

• How has the Flow Chart changed?

Copyright 2007


Displaying a Plan

• Plans are displayed as Reports

– Select a plan from Plan box in navigation control

– ViewPlan will compute estate tax liability

– Reports communicate results of computations

• Default report is Flow Chart

• Other basic reports are selected from “report style” icons

Copyright 2007


Report styles

– ViewPlan uses 4 different styles of report

– The style is selected from the Report Style Icons

– Most reports have two or more styles available

• Flow Chart Style

• Graph Report Style

• Calculations Report Style

• Details (Spreadsheet) Report Style

Copyright 2007


Additional Reports

• “Basic Plan” reports are just one of many report types– For additional reports, click “Report List” button

• Retirement reports

– Graph, Calculations and Detail (Spreadsheet) styles

• Cash Needs Reports

– Graph and Calculations styles

• Liquidity Costs Reports


• Probate / Living Trust Reports

– Flow Chart, Graph and Calculations styles

• Beneficiary Allocation Reports


• Section 6166 Reports


• Section 303 Reports


• Estate Details

– Similar to those shown earlier

– All Information

• Other Special Reports

Copyright 2007


Other Special Reports

• Glossary• Glossary of estate planning terms

• Not related to plan, usually included in Client Presentations

• Generation Skipping Reports• Basic Generation Skipping reports

– Flow Chart, Graph, Calculations and Scenario Explanations Styles

• Multiskip Generation Skipping reports

– Flow Chart, Graph and Calculations Styles

• Advanced Transfer Reports– Based on the Advanced Transfer selected as part of the Plan

• Primary Reports

– Flow Chart and Calculations Styles

• Charitable Deduction / Actuarial Calculations Reports

– Graph and Calculations Styles

• Income Tax Report

– Graph and Calculations Styles

• Annual Results Reports

– Graph, Calculations and Details (Spreadsheet) Styles

Copyright 2007


Data Reports

• Balance Sheet Reports– Calculations style

• Today

• At 1st Death

• At 2nd Death

• Asset Ownership breakdown– Graph style

– Current Estate Details

• Summary

• Asset Totals

• Asset Details

• Liquidity Reports– Graph style

• Liquidity by Asset Type

– Today

– At 1st Death

– At 2nd Death

• Liquidity by Owner

– Today

• Equity / Liabilities– Graph style

– By ownership

Copyright 2007


Exercise 6 – look at Reports

• Select “#5 Plan #3 w/10 yr1,000,000 QPRT”from the “View a Plan” Navigation box

• Click on the “Reports List” button– Select a Report

– Change the style of the report

–

• Click on the “Reports List” button again– Select another Report

– Change the style of the report

• Repeat until you have seen enough

• Don’t be discouraged if a report is blank. The Robinson case doesn’t have much sample data

Copyright 2007


Presentation Wizard

• Click on “Presentations” icon on Sidebar– Presentations Dialog Box

– Click on “Add” button

– Presentation Wizard Page 1

– Name Presentation

– Select group of Reports


– Select Plans to include


– Create Comparison reports

• Create Comparisons Dialog Box

– Select plans (2 or 3)

– Select report type (Graph or Calculation)


– Organize pages

– Turn Notes & Explanations on and off


– Set cover page options

– Set page numbering, etc. options

Copyright 2007


Presentation Report Groups

• Create your own Groups of Reports• Create group one time

• Use for subsequent clients

– Different groups for different types of plans

– Select from over 50 different Reports

– In Presentation Wizard Page 1


• In “Add/Edit Report Groups” dialog box– To select Reports to include in Group

• Select reports from list on left side

• Click on “Add” button in center of box

– To change default printing order of Reports

• Use “Up” and “Down” buttons below list of selected Reports

– Click “OK” button to return to Presentation Wizard

Copyright 2007


Exercise 7 – Make a Report Group (page 1)

• Create a Report Group of your own in the Presentation Wizard

• Click on the Presentations Icon

• In the Presentations box, click on the “Add” button

• On Presentation Wizard Page 1– Click “Add” button on the right side

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Exercise 7 – Make a Report Group (page 2)

• In the Add/Edit Report Groups box– Name your Group

– Select the first Report you would like in your group from the list on the left side

– Click the Add button in the middle

– Repeat until you have all the Reports you want

– Use the Up and Down arrows to put the Reports in order

• Click on the OK button to close the Add/Edit Report Groups box

• Click on the Cancel button to close Presentation Wizard Page 1

• Click on the Close button to close the Presentations box

Copyright 2007


Review of Lesson 3

Estate Details, Plans, Reports

• Estate Details– Assets & Liabilities

– Exercise 1 – Add Asset – Saturn 1

– “Advanced Transfers”

– Exercise 2 – Create a CRUT

– Estate Details Report

– Exercise 3 – Run The Estate Details Report

• Plans– Nature & uses of Plans

– Best Practices

– Tabs

– Exercise 4 – Sell Jupiter 2

– The simulation calculation process

• Error checking

– Lifetime Transfers

– Altering a Plan

• Quick Changes

– Exercise 5 – Add an ILIT

• Reports– Additional Reports

– Report Styles

– Special Reports

– Data Reports

– Exercise 6 – Look at Reports

• Presentation Wizard – Exercise 7 – Make a Report Group

• Review

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