Introduction
Sometimes, families don’t know that they have an estate tax problem. Even if they do, they likely aren’t aware of the actual monetary liability. With this in mind, an excellent place to start the estate tax discussion is by setting the stage with a few projections. Current liability can be projected with some certainty, but many assumptions need to be made about the clients’ future liability.About the client:
Life Stage: Brink of Retirement With 2 Children Employment Status: Business Owners Household Income Range: $1m ‐‐ $1.5m Business Revenue Range: $300m+ Asset Summary: Company worth approx. $1billion, six properties approx. $35m, vehicles worth 300k Liability Summary: Loans $3m- Live in Upstate New York
- Two children: Peter (age 29, married); Carter (age 25, married)
- One grandchild (11), and one on the way
Needs
As we can see, the Reeses are quite financially savvy; everyone needs a helping hand, especially when it comes to the future of their wealth. Here, we have identified the family needs guidance with honing in their retirement plan, estate plan, preparing the future generations for obtaining wealth, and even a plan to leave a philanthropic legacy.Retirement Planning
While the Reeses have a retirement plan that they are happy with, it is vital to reevaluate your plan to ensure it still aligns with your goals and values. During the retirement planning process, individuals and couples will determine the lifestyle they like best, where they want to retire, and how much money they will need to meet all of these goals. During the retirement planning process, the advisor and planning individuals will also examine the structures in which the individual is saving their funds since the couple has expressed their concern regarding tax exposure so they are looking for a tax-favorable structure that will reduce their responsibility and worry.Preparing Future Generations
The significant wealth that the Reese family has worked hard for will one day be passed on to the next generation. This can include money, assets, or even a business. Unfortunately, wealth does not come with an instruction manual. Unless your heirs are fully educated on what having significant wealth means and the responsibility that comes with it, the future may not look as bright as you had always imagined. Incorporating a next-generation education plan into your family office planning will make sure that your family members are ready for the responsibility. Our goal, when assisting you with this major step, is ensuring that your values are kept at the forefront of the plan.Philanthropy
The Reeses also emphasized a desire to leave a legacy to not only their family but a cause they strongly believe in, the education of children in underperforming neighborhoods. With the help of an advisor, the Reeses can figure out the perfect avenue for them. Here are some of the options the Reese family has:- Direct Donations- One of the easiest and most popular ways to contribute is through making a direct donation to a charity or organization. This can provide financial support to an organization or cause immediately and are commonly tax-deductible.
- Volunteering- If you are looking for a more hands-on contribution, volunteering is a great way to contribute. There are many roles and responsibilities that one can assume from a basic volunteer to board members. Volunteering also allows individuals to have valuable insight into the organization while also allowing the volunteers to employ useful skills and talents.
- Donor-Advised Funds- A donor-advised fund grants tax-deductible contributions to a personal giving account of the donor. Grants are given to charities from the giving account and can be anonymous.
- Private Foundations- When wealthy individuals and families create private foundations, they have the power over grantmaking. They give families control over grantmaking and investments and engage in various levels of the foundation. It is subject to minimum distribution requirements and any taxation that’s required by the jurisdiction in which it is formed.
Estate Planning
While it can be hard to imagine one’s mortality, estate planning is a vital part of any financial plan. It surely is a subject that many do not want to begin thinking about, but it can be more tragic, knowing your family may not have a thorough plan. An estate plan should be a staple in any retirement plan. While planning a retirement, individuals are preparing for the later years of their lives, where their income will come from, where they will live, etc. For a worry-free retirement, your planning should begin early. During this planning a breezy retirement, individuals should also be seriously considering what is going to happen when they are no longer around. The next step in your life is estate planning. A proper estate plan will not only allow retirees to feel comfortable with the future of their wealth, but it will also make it much easier for loved ones and heirs to tie up any loose ends, distribute wealth, allocate belongings. A common belief about estate plans is that creating a will suffice. Although the will is essential, it’s not the only step of a thorough plan. The Reeses have a nearly complete plan, but they are ready to reevaluate. With the help of an advisor, they will be able to check up on all of the following documents and planning steps.- Taking inventory (both physical and nonphysical)
- Property management
- Healthcare directive
- Living trust
- Creating a will
Family Office Services by Alpen Partners
Estate planning cannot be done alone. Alpen Partners utilizes a hands-on approach to creating a plan that works best for you and your family. We have years of experience as a family wealth planners and financial advisors. We provide our clients with a full range of family office services. More than being merely an asset manager for clients, we become their trusted partner to handle all aspects of their private affairs. Alpen Partners offers clients with more than 10 million in assets under its management a complete range of family office services, similar to what large multi-billion dollar families typically receive through their own family offices. Our clients have realized the cost and efficiency benefits of having Alpen Partners take care of their family office, and have appreciated that they need to own their own family office became a dispensable luxury. All investments involve certain risks. All investments carry the potential for financial loss, including the loss of the principal amount invested. Past performance should not be viewed as an indicator of future results. Market conditions and broader economic factors can significantly impact the value of investments. Investments in international markets are subject to additional risks, such as currency exchange fluctuations, political or economic instability, and variations in accounting practices. Alternative investments, including but not limited to hedge funds, private equity, and real estate, may be illiquid, speculative, and are not suitable for all investors. The above information should be considered before making any investment decisions. All posts and publications are for your information only and are not intended as an offer, promotion, or solicitation to buy or sell any financial instrument or perform any other financial transactions. All information and opinions expressed in posts and publications reflect our current views as of the date of the publication and may be liable to change without notice.Interested? Contact us now
Overview
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No matter the problem, Alpen Partners will handcraft a solution for you. We know that there is no one-size-fits-all when striving for financial success. Our approach involves working with our clients to make a unique plan to meet their needs. Rest assured that we will work hard to guide you through the process of meeting your financial and personal goals.
Contact us to enhance your financial plan today.
Contact us to enhance your financial plan today.