2010 the year that the estate tax was to be zero for one year before returning to the 55% rate and $1 million
exclusion probably won’t happen. This article is being written before 2009 year end. It is expected that Congress will
vote to extend the current estate tax rate of 45% along with the exclusion of estates which are smaller than $3.5 million.

The University of Kentucky has impacted many of you and legacy planning may have an interest. There are
many ways to give back and I would like to suggest three ways to give and assure you we can outline many other
opportunities to you.

1. Charitable Remainder Trusts—are arrangements between a donor, a Trustee and a Foundation could be a
community foundation or the University. The gift givee transfers their assets to the trust and receives an
immediate tax deduction. The donor retains the right to its income and specifies who is to receive the
income and at what rate. After the death ofthe last beneficiary, the Foundation receives the remaining
assets and donates them to the gift giver’s charity(ies) of choice.

2. Life Insurance—you can donate a life insurance policy that is no longer needed to the University, your
church or charity of your choice, and receive an immediate tax deduction equivalent to the approximate
surrender value. You can also choose to name the University the beneficiary in which the face value of the
policy will go to the University. Your premium payments on the policy are tax-deductible if the University is
the owner and beneficiary of the policy.

3. Retirement Plan Assets—a particularly effective way to fund a charity. Depending on the size of your
estate, income and estate taxes may consume a large portion ofthis asset. However, if you name the
University or community foundation as your beneficiary then this will substantially reduce or eliminate your
tax liability.

Perhaps you ought to invest an hour of your time and see how the Wisdom of Salomon can be working for you.

Advice offered on Legacy Planning, Retirement Planning, Estate Planning, with thirty-five years of experience.
Please call or e-mail us today for your FREE financial consultation
SALOMON &CO. Salomon 81 C0. " ’ t
859.266.0012 Arthur Salomon l‘q '. ‘
800.928.0012 President, MA .." é
www.sa10m0nc0.c0m art@salom0nc0.com .« L
J 3217 Summit Square Place, Suite 250 859.266.0012
6 I? v I C Lexington, KY 40509
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