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We show our clients how to leverage a small initial deposit to gain a very high tax-free return for heirs. 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.

  • Do you have a will or trust?

  • Are all of your documents current and relevant?

  • Have you designated a suitable power of attorney?

  • Have you addressed your childcare wishes in the event of a tragedy?


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.


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


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.


Receive the full inheritance at once.



Allows access to the full amount if more income is needed quickly

May push beneficiaries into higher federal tax bracket for the year in which the distribution is received


Withdraw 100% of the inheritance in five years



Take as little or as much as needed each year allowing payments to be spread out up to 5 years

Be careful - as with all options listed, distributions can still contribute to federal income


Withdraw funds from an account in specified amounts for a specified frequency until funds are depleted.



Allows flexibility and control over the amount and distribution method

Lifelong payments are not always guaranteed - payment options depend on the annuitization option selected


Receive the full amount in a predetermined period of time with required minimum distribution every year.



May save the most in federal income tax extending the period of tax-deferred growth on the assets inherited while keeping the undistributed amount invested

Possible product limitations could make withdrawals somewhat restrictive


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.

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