ROC 101485 ROC 129482 Offer expires 12/2/2011. *Rebate offer is valid only with the purchase of qualifying Lennox ® products. **See dealer for details and visit www.energystar.gov for more information. ***See dealer for details or visit Lennox.com. © 2011 Lennox Industries Inc. See your participating Lennox dealer for details. Lennox dealers include independently owned and operated businesses. Receive up to $1,650 in Rebates* with the purchase of a qualifying Lennox ® Home Comfort System AND up to $500 in Federal Tax Credits** Special Financing Available*** OR

Page 11 October 2011 This month’s report from Arcadia lawyer Bob Jones When thinking of making gifts always consider ways in which you may avoid taxable gifts. Some of the more obvious non-taxable gifts are charitable contributions and annual exclusionary gifting. The annual exclusion, which is now set at $13,000 per year per person, allows for an unlimited number of such gifts to an unlimited number of individuals each year. All gifts made to an individual by a taxpayer/donor are accumulated for the calendar year and if they do not exceed the exclusionary amount, presently $13,000, it is not necessary to fi le a gift tax return. If, however, the annual exclusion is exceeded even by $1 a return is required to be fi led. In a husband and wife situation, a combined annual exclusion of $26,000 per individual is available. Another exemption, referred to as a quali fi ed transfer that is exempt from the gift, is the payment of medical care for an individual. Payment of long-term care insurance and transportation primarily for and essential to medical care can be an exemption. There are restrictions that have to be closely examined. A second quali fi ed transfer provided under the Internal Revenue Code (Code) is for tuition to an educational organization. This exemption can be particularly helpful in the payment of educational expenses by allowing tuition, which is paid directly to the educational institution, to be exempt from gift tax. The combination of this exemption and the use of a quali fi ed tuition program commonly known as a 529 plan, if properly structured and put in place far enough in advance of college or other higher education expense likely will cover all educationally related costs. The quali fi ed tuition program provided for under the Code, many times referred to as a 529 educational trust, is an excellent gifting vehicle with many advantages. The number 529 references the speci fi c Code provision. Each state has adopted a quali fi ed tuition program, which permits a person to make contributions to an account established for the purpose of paying quali fi ed higher education expenses of a designated bene fi ciary of the account. This program only applies to higher education expenses, which are de fi ned as tuition, fees, books, supplies and equipment required for the enrollment or attendance of a designated bene fi ciary at an eligible educational institution. A donor/individual may fund the 529 education trust with fi ve years of future annual exclusionary gifts at formation of the trust, which presently at the current annual exclusion of $13,000 per year permits a $65,000 gift that is not taxable. A husband and wife may combine their annual exclusionary gifts, thereby permitting an initial gift of $130,000 by taking advantage of the front end loading and using fi ve years of future annual exclusionary gifts. The donor/individual must understand that if any additional gifts are made to or for the bene fi t of the donee/bene fi ciary during the fi ve-year period, they will be treated as taxable gifts. Any of these suggested gifting techniques should only be attempted with the help of an experienced estate planning professional. Bob Jones is a 19-year Arcadia resident and shareholder at Gallagher & Kennedy law of fi ces. All Saints’ Episcopal Day School has scheduled its annual series of fall and winter admission Open Houses on November 2, December 8 and January 19. All open houses begin at 9 a.m. Each event features campus tours by parent ambassadors and a question-and- answer session with admission of fi cers and division heads. Application packets will be available. Reservations are suggested, but not required. RSVP to 602-274-4866. A+ RATING P L U M B I N G Camelback I n c . All Phases of Residential & Commercial Plumbing 602-954-7072 Our Arcadia Family Serving Yours Licensed, Bonded & Insured Third Generation Master Plumber No. C-37R & L-37 3546 E. Hazelwood Street Phoenix, Az 85018-3436 C e l e b r a t i n g For Free Estimates Call Repairs Water, Sewer, & Gas Piping New Construction Tenant Improvements Water Heaters Garbage Disposals Water Filtration Bathroom & Kitchen Remodels rd C e l e b r r a a t t i n g Thi Thi Generati G Y E A R S I N B U S I N E S S Hi! I’m Scruffy! Thrift store donation drop-off, 10am-5pm Daily Adoptions Sat 11am-2pm M-F by appointment I’m a one-year-old male poodle mix looking for a family to call my own. My favorite things are kids and other dogs, and I just LOVE to jump! I can reach heights of 6 feet, so I’d need a pretty tall fence to keep me safe. Come check me and my buddies out at Lucky Paws and let us steal your heart! 6423 E. Thomas Road www.luckypawsaz.org 480-941-4135 c