The Wealth Counselor Many of us in the legal, financial and accounting worlds discover our new clients’ well-intentioned, yet disastrous, plans after the fact. The widow has already transferred her house into her children’s names or an inherited IRA is drained to pay for a Porsche. Observing the lost planning opportunity and the financial fallout…
DetailsThe Wealth Counselor Portability laws and the opportunities they create have significantly increased advisors’ roles in estate planning. No longer is the standard credit shelter trust (with QTIP or outright distribution to spouse) the only way for married couples to plan. Now, CPAs, insurance professionals, and financial advisors have a larger and more complex role…
DetailsThe Wealth Counselor In fact, their unique needs—and their growing numbers—demand attention Handing down your accumulated wealth to your children is a long-held tradition that many consider a cornerstone of the American dream. But what about those individuals who, whether by choice or due to circumstance, do not have direct descendants to whom they can…
DetailsThe Wealth Counselor Many of your clients are baby boomers (now ages 50-68) moving into retirement and dealing with all the issues related to aging: elderly parents, kids in college, saving enough to last a lifetime and protecting what they have. With a dizzying array of financial instruments to choose from, complex federal and state…
DetailsThe Wealth Counselor When it comes to financial and wealth planning issues, more often than not, people go to a professional they trust. They may be working with a financial planner, CPA, agent, or banker, but when trust and estate concerns arise, clients need their trusted advisor to listen to their needs and to explain…
DetailsThe Wealth Counselor The signing of the American Taxpayer Relief Act of 2012 (“ATRA”) on January 2, 2013, certainly marked a transition for wealth and estate planning professionals and their clients. Before ATRA, planning was often dominated by the volatility and uncertainty of the federal estate, lifetime gift, and generation-skipping transfer (GST) tax exemptions (referred…
DetailsThe Wealth Counselor Income Tax Options Run Out December 31 for Non-Grantor Trusts. Most clients and advisors have not yet caught up to the impact of soaring income tax rates on non-grantor trusts and on estates in administration. Trustees and estate administrators must be informed immediately to implement strategies to mitigate the 2013 tax rate,…
DetailsThe Wealth Counselor Income Tax Options Run Out December 31 for Non-Grantor Trusts! Most clients and advisors have not yet caught up to the impact of soaring income tax rates on non-grantor trusts and on estates in administration. Trustees and estate administrators must be informed immediately to implement strategies to mitigate the 2013 tax rate,…
DetailsThe Wealth Counselor Some think that trusts are used only for end-of-life planning. Trusts, however, are like wrenches: they come in a wide variety of shapes and sizes, each particularly suited to a particular need. Some are for wealth accumulation while others are for wealth preservation, and still others are designed to protect future generations. In…
DetailsThe Wealth Counselor The world changes; clients’ circumstances change; motivations and interests change. As these changes occur—often gradually—“hidden” risks emerge that can significantly deteriorate future wealth if left unattended. By “hidden” risks, we mean exposures of which the client or potential client is likely to be unaware. Identifying hidden risks in an education-based marketing program…
DetailsThe Wealth Counselor It is vital for each member of the advisory team to understand the roles of the other members in meeting their client’s needs. Therefore, in this issue of The Wealth Counselor, we will focus on how the estate planning attorney uses the initial interview in a blended-family situation. Blended-family clients often require…
DetailsThe Wealth Counselor The “blended family” comprises a fast-growing segment of US households. Whether an attorney or investment advisor, fine-tune your intake or initial interview process to determine the desirability of representing a blended-family client, assess the accepted client to determine your counseling strategy, and hit the ground running with the information you need to…
DetailsThe Wealth Counselor The collision between economics and demographics is increasing client concerns about running out of money in retirement. Defined benefit plans are pretty much a thing of the past, and people are living longer. Clients need income that is sustainable and that they will not outlive. The cost of health care continues to…
DetailsThe Wealth Counselor With the federal gift and estate tax exemption currently at $5.25 million per person ($10.5 million for married couples), some clients and potential clients with “smaller” estates may wonder if they need any estate planning. But there are many reasons to do estate planning other than to avoid estate taxes. In fact,…
DetailsThe Wealth Counselor The American Taxpayer Relief Act of 2012 (which became law on January 2, 2013) made permanent the temporary estate/gift/generation-skipping transfer tax exemptions established in December 2010, increased the rate on non-exempt estates/gifts/generation-skipping transfers to 40% and introduced substantial new income tax burdens on high income taxpayers and trusts. In addition, 2013 is…
DetailsThe Wealth Counselor The Internal Revenue Code (“IRC”) provides substantial income and estate tax benefits to the married residents of the nine “community property” states. A tenth state – Alaska – allows married couples to opt in to the community property regime and reap these benefits. In addition, Alaska offers the married residents of the…
DetailsThe Wealth Counselor Many clients have large IRAs and retirement plan accounts and need special estate planning for these assets. A 2009 study by the Investment Company Institute found that retirement plans account for 34% of all household financial assets, up from 14% in 1978; IRAs alone account for more than 10% of all household…
DetailsThe Wealth Counselor “Small businesses,” that is, those that have less than 500 employees, comprise 99.9 percent of all businesses in the United States. The owners of these businesses will, someday, exit their businesses due to retirement, incapacity or death. But most are so busy working that they don’t slow down and think about business…
DetailsThe Wealth Counselor On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 (the 2012 Tax Act) to deal with the so-called “fiscal cliff.” The 2012 Tax Act included revisions to estate, gift and generation-skipping transfer (“GST”) tax laws and income tax laws that will affect estate planning for…
DetailsThe Wealth Counselor Washington’s negotiations about 2013 tax laws are getting lots of press. As estate planning professionals, we are often asked our opinions about what the 2013 estate tax laws might be and the resulting implications for our clients. But for the vast majority of Americans, what the estate and gift tax laws will…
DetailsThe Wealth Counselor Year-end tax planning is always important, but this year it is especially difficult because of uncertainty about what the tax laws will be for 2013. The Bush-era tax cuts are scheduled to expire on December 31 and the President and Congress have once again delayed taking any action. No one knows which,…
DetailsThe Wealth Counselor Charitable giving is discretionary spending. It is affected by both the economy and the income tax rates. Not surprisingly, charitable giving has been down in recent years, but this does not mean clients are less charitably inclined. Many just need to be pointed in the right direction. With the $5.12 million transfer…
DetailsThe Wealth Counselor Helping clients build, manage and protect their wealth is the goal of each member of the advisory team—financial/investment advisors, CPAs, attorneys and insurance agents. Estate planning is part of this larger process and, as a result, should be on each advisor’s checklist for every client. In this issue of The Wealth Counselor,…
DetailsThe Wealth Counselor When a closely held business is a significant part of a client’s estate, as is often the case, business succession planning becomes an important part of the client’s estate planning. Estate planning issues include how to turn the business into cash for the owner’s retirement, who will take over or buy the…
DetailsThe Wealth Counselor Planning for the possibility of disability is probably the most overlooked part of estate planning. While many people will give serious consideration to estate planning for their death, few will seriously consider planning for their disability. Yet disability planning should be the more important part of estate planning from the client’s perspective…
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