Tag Archives: Financial Planning

AALU: Legacy Management: A Fresh Look at an Age-Old Business

While traditional estate plans may cost less, the value added with a comprehensive legacy management approach generally exceeds its marginally higher expense. Proactive management supported by a cooperative multi-disciplinary team helps families see what is on the horizon and efficiently navigate changes. Professional services rendered to implement and maintain a plan also eliminate many costly issues that routinely emerge when clients use a less sophisticated or “DIY” approach.

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A Few Select Insights from the 2019 Heckerling Institute on Estate Planning

“Heckerling presenters emphasized that flexibility in planning will remain key for families and advisors through the on-going roll-out of the TCJA and related guidance.  Given the TCJA’s temporary nature, the possibility for future tax law changes depending on future election outcomes, and the many moving parts of planning for the “modern” family, successful plans will require active management and on-going monitoring of both federal and state tax and legal developments.” 

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Shifting Gears – Rising Rates and Legacy Planning

“Relatively small shifts in applicable interest rates can have a disproportionate effect on the performance of rate-sensitive legacy planning. Appreciating the potential economic impact of the rate changes and how other factors, such as payment structure, term selection, and asset valuation, also can complement overall performance, may help clients and advisors to better customize the planning to achieve the intended goals.”

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Protecting Your Charitable Deduction – The IRS Issues Final Guidance

“The IRS has issued long awaited guidance concerning the proper reporting of cash and noncash charitable contributions…Failure to comply strictly with these requirements can result in a denial for some or all of a claimed deduction.”

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“Trouble Ahead, Trouble Behind,” and You Know that Notion Never Crossed My Mind: Avoiding 5 Common Mistakes in Life Insurance Planning

“In a world of increasing commoditization, adding value is key. Advising on product selection and identifying common trouble spots in the development of a life insurance plan can offer advisors significant opportunities to provide value to their clients. Collaborating with other allied advisors early on in the client’s planning also can alleviate many of these problems without creating extensive delays to policy issuance.”

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Premium Financing – Fraud Charge Against Insurer and Broker Dismissed

“Institutional premium financing loans to ILITs—requiring collateral from the grantor to protect any shortfall between the amounts loaned and the policy cash value—are very complicated propositions.  Generally, this kind of premium financing should be considered only when….”

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Getting Everyone on the Same Page -­ Life Insurance Basics for the Allied Advisor

“The increased complexity and sophistication of life insurance products emphasize the importance of the advisor’s role in explaining the fundamental differences between life insurance products to the client.”

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Rest in Peace: Adequate Disclosure on Gift Tax Returns – Seeking Closure on Clients’ Legacies

“If clients are going to spend the time and expense to plan, then they should also try to protect their efforts.  Adequate disclosure is a proactive tool for clients to ensure some finality in the valuation and potential taxation of their lifetime legacy planning.  Clients should plan to provide full and detailed disclosure, which will require extensive cooperation and coordination among all the client’s advisors (insurance, financial, accounting, legal) to avoid mistakes that could otherwise result in costly amendments of returns and additional audit and tax exposure to the client.”

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The Hits Just Keep on Coming: 2016 Gift, Estates & Trusts Priorities – IRS Names Grantor Trusts Among New Items

“The Priority Guidance Plan indicates that 2016 could be an eventful year for estate and life insurance planning.  The potential uncertainty of the scope, content and timing of the planned guidance emphasizes the importance of having access to not only updated technical information but also to practical analyses of these tax developments, their real world application, and how advisors and clients should respond.”

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Market Watch – Planning Before Interest Rates Rise

“Planning with estate “freezes” has been popular in this low interest rate environment. The potential for rising rates before year-end may incentivize clients to move sooner rather than later on these opportunities.”

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