Legacy Planning
Estate Planning
A lifetime of hard work, saving and smart investing creates a legacy worth preserving for the next generation.
Using the latest estate planning techniques, we’ll tailor strategies to help you protect and preserve your family’s wealth by maximizing amounts transferred to those you care about most.
Many clients create plans and then put them on a shelf. However, as your financial status and family dynamics change, not to mention estate and income tax laws, it’s important to review your plan periodically to ensure it still fits your needs
Whether your goal is to leave your estate to heirs or charity, to minimize taxes or to maximize lifetime giving, we are here to provide clarity and direction. We have the knowledge to guide you through all phases of your estate plan to ensure that your wealth is directed as you intend.
When it comes to Estate Planning, it’s not about the size of your estate, but the needs of your family. Without the proper provisions in place, you and your heirs may be at the mercy of the state. Estate Planning helps you maintain control, and the best time to plan is NOW, before a crisis occurs. We can educate you on the steps to take to protect your wishes while you are still living, and continue protecting them after you have gone.
Leave Nothing to Chance
It's crucial to correctly state your key designations on all financial accounts to make sure assets pass to your desired beneficiaries at the right time and in a tax-efficient manner. Errors and misnamed accounts can have unanticipated consequences, such as:
- Needless expenses and taxes
- Potential of disinheriting children or grandchildren
- Delays in providing for the financial needs of loved ones
To get a jump-start on the process, gather all the information for your accounts (or have your financial professional help). Next, review all documents to verify they are up to date, in proper order, and are in line with your ultimate objectives. At this point you may want to gather your beneficiaries to discuss their options and allow them to ask questions.
Also keep in mind that your legacy priorities may change due to significant events in the lives of your loved ones, at which time you may want to update your designations. Such life events may include:
A change in marital status
The birth or adoption of a child
A death in the family
A health problem
A relocation
A new job or promotion
Passing on your Legacy
You'll have several options available for how your beneficiaries will receive an inheritance. Review these options with them so they can learn how to optimize their inheritances in a tax-efficient manner.
Protecting Your Legacy
Unfortunately, you may have beneficiaries you believe aren't experienced or responsible enough to effectively manage an inheritance. You may want to seek options that can protect your legacy, allow you to restrict distributions to the next generation, and provide for all beneficiaries. It's important to discuss with a financial professional your options for controlling how your legacy is passed on.
How Do The Distributions Stack Up?
Hypothetical portfolio assumes $100,000 with 28% tax rate and the existing account balance continues to grow at 7% annually.
The assumed rates of return are not guaranteed and investment losses could cause a negative rate of return. The graphed totals are net after tax.
This chart illustrates a hypothetical assuming:
- The Lump Sum value with the total amount beginning at $100,000 and $72,000 is the net after tax amount assuming a 28% tax rate
- Out in Five assumes a withdrawal of 20% per year starting Immediately, growing at 7%, withdrawals increasing at 7% off the original amount where $100,000 is the account value at death, $115,014.78 ls the total amount withdrawn, and $82,810.64 is the net distribution amount after tax
- Stretch IRA assumes a 55-year-old Inherits the account taking Required Minimum Distributions only, growing at 7%, where $100,000 is the account value at death of original owner. $229,398 is the total amount withdrawn, and $165,167 is the net distribution amount after tax.
This chart is purely hypothetical and for illustrative purposes only. The illustration shown here assumes a participant under age 59½ in 28% federal income tax bracket. Tax rates are subject to change. Your particular situation may be different. State taxes, which may also be due, are not included in the example to the left and, if applicable, would further reduce the “amount you keep." For questions about a specific situation, please consult a qualified advisor.
