By Brenda Guerrero
 
A successful transition of a family’s assets to the next generation does not happen by accident.  Reducing both income and estate taxes while simultaneously reducing exposure to the creditors of future beneficiaries are several benefits of comprehensive estate planning. Moreover, a solid estate plan can take away the burden that often accompanies unanswered questions when loose ends are left to next generation-- during a difficult time. 

Take the example of a 70-year-old widow who saved over $52,000 in taxes when she implemented her estate advisor’s planning strategy. ¹
 
A sample of the strategies she applied: 
1.    Avoided income tax on her required minimum distributions (RMD) by making qualified charitable distributions (QCD) directly from a taxable IRA in lieu of the taxable RMD.
2.    Maximized her chances of passing on to her beneficiary an inheritance free from federal estate taxes by electing portability of the unused tax exclusion of her deceased spouse by filing a F-706 that was otherwise not required. 
3.    Carefully updated the tax basis in all eligible property to the date of death values via the step-up in basis rules to reduce income taxes on inherited property.
 
We are all exposed to great and often sudden crises and the window of time in which to act is short; however, the tranquility a wealth advisor provides is valued the most during trying times. 
 
We welcome the opportunity to go over the big picture of financial planning with you and review how this can lead to building a patrimony for generations to come.

¹ Advisor Helps $15 Million Client Reduce Taxes and Fears, FA Financial Advisor January 2020.