UlTImATE SUccESS GUIdEthat their true net worth was $5 million more than they thought. With
80% in stocks and mutual funds, the net worth of my client could fall
significantly in a short period of time. Meaning if the market crashed,
they would no longer have an estate planning need as long as the ex-
emption was still available. Since the exemption is a moving target,
especially with it set to be reduced, planning needed to be implemented
immediately so that the single client would have the wealth protected
while alive or if they passed away.
FIve keY PlAnnIng stRAtegIes WeRe IMPleMenteD.
1) Taking advantage of the gifting with a $3 million gift from three
separate investment accounts.
2) Transferring $4.5 million to preserving wealth for income the rest
of the clients life, including passing the entire amount on to ben-
eficiaries in the future, based on income needs. $2 million was
utilized to give a guaranteed income of $130,000 per year and
$2.5 million was invested in a conservative portfolio of separate-
ly managed funds with a 1% management fee being the only cost.
3) Permanent indexed-based Life insurance was placed on the cli-
ent for any estate taxes in the future after Gifting to pay any
estate tax, and also on the children to guarantee large amounts
of wealth passed onto the grandkids with legacy planning. A $5
million payout will follow on a guaranteed basis to the grand-
children.
4) A tax strategy was implemented to sell highly appreciated stocks
and mutual funds at low capital gains rates with offsetting oil and
gas tax deductions eliminating current year taxes. While the mar-
ket was at the highest point in five years and before Obama-care
taxes on investments, this strategy really worked for year-end.
5) Overall access to assets in tax-deferred and tax-free investments
was formulated for the distribution phase of the client’s retire-
ment life with much less market exposure to risk.oUtsoURCIng PARtneRsThe Team of Wealth Advisors are a significant part of our planning and
real life stories. Estate Planning Attorneys and tax planning CPA’s are
all being coordinated