ANNUITY LEAD TRUST
Prepared for David Brown
Original Property 7.00% Lead Trust
Value $1,000,000
Cost $200,000
Gain $800,000 Trust Principal
$1,000,000
Trust To Family
$1,144,866
Term of 10.00 Years
Income to
Transfer Asset to Trust Trust Assets to Family
Gift Tax Deduction Charity
January 30, 2003 Page 1 of 7
This educational illustration is not professional tax or legal advice; consult a tax advisor about your specific situation. See data sheets for assumptions.
ANNUITY LEAD TRUST
Rate of JANUARY 4.2% Years 10.000
The Month
Gift Amount $1,000,000
Gift Date 01/01/2003
Cost Basis $200,000
Donor David Brown
Current Return 8.00 %
Payout Option Annuity Trust Return 8.00 %
Remainder Recipient Family Trust Payout% 7.00 %
Income Tax Rate 40.00 % Payment Frequency Annual
RETAIN ASSET VS. LEAD TRUST COMPARISON
Ord (BeforeTax) 6.00 % Cap. Gain 20.00 %
Ord (AfterTax) 3.60 %
Gift Bracket 0.00 %
Capital Growth 2.00 %
Total Return-1% 4.60 % Estate Bracket 45.00 %
(After Tax With 1% Turnover)
Growth Factor 1.5679 Gen. Skip Tax NO
-- Jan 30, 2003 Page 7 of 7 --
This educational illustration is not professional tax or legal advice; consult a tax advisor about your specific situation.