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New Calculator from Manulife College Savings Demonstrates the Estate Planning Benefits of a 529 Plan Boston - Enabling financial consultants to more clearly illustrate the estate planning benefits of a 529 college savings plan, Manulife College Savings introduced a new Estate Tax Calculator. The calculator is the first in a series of consultant and client tools that Manulife College Savings is making available for the upcoming gifting season. The Estate Tax Calculator, available for registered users online at the Resource Center at www.manulifecollegesavings.com, illustrates the potential federal estate tax savings that are possible through the use of 529 plans. By investing in a 529 plan, clients can fund up to five years of gifts in the same year -- $55,000 per Beneficiary or $110,000 Based on federal tax law, donor must elect that the gift be treated as having accrued over a five-year period. If additional gifts are made to the same Beneficiary during this five-year period, a federal gift tax may be levied. If donor dies within this five-year period, a pro rata share will be included in the donor’s estate for estate tax purposes. State gift and estate inheritance tax laws may vary. if a couple is filing jointly. With this calculator, clients learn how they can save on their federal estate taxes by removing significant assets from their own estates by contributing to a 529 plan, all while helping to save for a loved one’s college education. An illustrative gifting tree makes it easy to see how these assets will be distributed to each Beneficiary while the Account Holder maintains control of the accounts. Financial consultants can also use the calculator to develop a personalized prospecting letter or proposal with a customized illustration for their clients. Other components of Manulife College Savings’ gifting campaign include mailers, prospecting cards, consultant-customizable advertisements, and an informative brochure that educates financial consultants about advanced gifting opportunities, helping clients to benefit from the tax advantages of removing assets from their estates with 529 plans. In addition, Manulife College Savings’ gifting kit also includes a client gift card and coloring book calendar for future 529 plan beneficiaries. “Most financial consultants and investors are probably already aware of some of the tax advantages of 529 plans in terms of saving for a child’s college education. What many may not realize is the significant estate tax benefits that can also be gained by giving to a 529 plan,” said Carey Foran Hoch, Vice President, Marketing & Product Management for Manulife College Savings. “The Estate Tax Calculator illustrates these potential savings for clients. It also works with our other gifting materials to provide financial consultants with tools and information they can use to maximize 529 gifting opportunities.” Manulife College Savings In July 2001, The Manufacturers Life Insurance Company (U.S.A.) (Manulife USA) entered the college savings market with Manulife College Savings, a national multi-managed Section 529 education savings plan distributed by Manulife Financial Securities LLC, through other broker/dealers appointed by Manulife Financial Securities LLC, managed by T. Rowe Price and sponsored by the Education Trust of Alaska. The multi-manager approach of Manulife College Savings allows investors to work with their financial consultants to pursue a strategy that helps to maximize their investment opportunities, while effectively managing risk. Expanding upon the inherent advantages of a typical 529 savings plan, Manulife College Savings offers investment choices from some of the nation’s top mutual fund managers. Mutual fund managers available with Manulife College Savings are A I M Investments, American Funds, Davis Selected Advisors, L.P., Franklin Templeton, MFS Investment Management, OppenheimerFunds, Inc., Pacific Investment Management Company (PIMCO) and T. Rowe Price Associates, Inc. About Manulife Manulife USA is committed to offering the highest quality life insurance, pension, and individual wealth management products to its clients. Its family of products has been built around a powerful combination of investment options chosen with the goal of providing attractive risk-adjusted returns and broad diversification across asset classes, investment styles, and asset managers. With its extensive product lines, competitive underwriting, excellent ratings, and quality customer service, Manulife USA is dedicated to providing quality products designed to help create and preserve wealth for its clients. Manulife Financial is a leading Canadian-based financial services group operating in 15 countries and territories worldwide. Through its extensive network of employees, agents and distribution partners, Manulife Financial offers clients a diverse range of financial protection products and wealth management services. Funds under management by Manulife Financial were Cdn$144.3 billion as at June 30, 2003. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. - 30 - For more information, please contact:
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