Category: Estate Planning

Simona Ondrejkova, CFP

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Jul 08, 2024

Clients who own a business often face an additional layer of complexity when it comes to estate planning. From determining the most effective strategy for passing on the business to minimizing taxes and maximizing wealth transfer for loved ones, navigating through countless estate planning strategies can be exhausting. The good news is that there are certain business structures, such as the family limited liability company (family LLC), that could make things easier for those who run a business that’s meant to stay in the family.  Here, we explain what a family limited liability company is, how it can help business...

Madison Eubanks

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Jun 05, 2024

For wealth management firms that want to offer their clients complete, holistic financial advice, estate planning services are an absolute must. The snag is that most firms have far more advisors than planners, and resources don’t allow central planning teams to work closely with every single client.  Because estate planning is an important part of the client experience, planners need to find ways to scale the practice to the advisor level. This doesn’t mean advisors need to become the final authority on all things related to estate planning, but rather that they need to know enough to open the door...

Simona Ondrejkova, CFP

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May 29, 2024

If you have clients who own a business, it’s important to be familiar with the buy-sell agreement. This type of contract can act as both a business succession tool and an estate planning tool.  Putting a buy-sell agreement in place can avoid potential threats to the continuation of the business that your clients have worked so hard to build or help avoid liquidity issues to ensure their loved ones are taken care of.  If a partner in a business dies or exits the business because of a disability or other reasons, a buy-sell agreement provides the method for transferring that...

Madison Eubanks

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May 22, 2024

Typically, we think of an estate plan as an arrangement to maximize wealth transfer and minimize taxes after a person passes away. However, there are some elements of estate planning that can take effect while a person is still living—like a Medicaid trust.  In this article, you’ll learn what trusts and Medicaid have to do with one another, the advantages and disadvantages of Medicaid trusts, as well as when it may be appropriate for your clients to set one up.  What is a Medicaid asset protection trust (MAPT)?  [embed]https://justvanilla.wistia.com/medias/prx1k9xyba[/embed] A Medicaid asset protection trust—also known as a Medicaid trust or...

Madison Eubanks

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May 14, 2024

There are many different types of trusts that can be used in estate planning to achieve a range of various purposes and goals. One common element among all trusts is the appointment of a trustee to manage its assets.  What exactly does a trustee do? This article will cover everything you need to know about trustee responsibilities, how a trustee should be chosen, and more. What is a trustee?  [embed]https://justvanilla.wistia.com/medias/lzt8tzm231[/embed] A trustee is a person or entity that holds and administers a trust’s assets or properties for the trust’s beneficiaries. In general, a trustee is tasked with managing a trust’s...

Madison Eubanks

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May 08, 2024

As many people age, it’s common for their retirement plan to represent the largest portion of their assets. In estate planning, retirement accounts like 401(k)s and IRAs often require special attention because there are unique rules about how they can be transferred to beneficiaries.  In some cases, a retirement trust can be a helpful solution. Here, we’ll explore what a retirement trust is, the advantages and disadvantages of using one, how to set up a retirement trust account, and more.  What is a retirement trust?  A retirement trust is an estate planning strategy in which a trust is named as...

Simona Ondrejkova, CFP

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Apr 29, 2024

Of the many different types of trusts out there, some are designed specifically to help married couples transfer their assets according to the wishes and needs of each individual within the marriage. These trusts can be structured to provide for the surviving spouse while also being mindful of estate tax considerations for the surviving spouse and future beneficiaries. A survivor's trust is an estate planning tool used by married couples to ensure that after one spouse passes away, the surviving spouse will have access to a portion of the assets to provide for their living needs. There are several benefits...

Simona Ondrejkova, CFP

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Apr 15, 2024

Do you have clients who own a business or have just recently inherited one? When it comes to estate planning for business owners, understanding section 6166 of the US tax code could make a big difference in ensuring continuity of the business after the owner passes away. While there are several estate planning strategies that can help clients reduce their overall estate tax bill, those who own a business should also be aware of strategies to defer payments on estate taxes to keep their heirs from having to do a fire sale of the business just to pay taxes. So...

Simona Ondrejkova, CFP

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Apr 04, 2024

When helping clients with their estate plan, taxes are one of the key components to take into account as part of the planning process. And while there are several estate planning strategies that can be used to minimize or eliminate estate taxes for clients, here we’ll talk specifically about taxes that an estate or a trust incurs on its income. One of the forms that clients should be familiar with if they are trustees, administrators, or beneficiaries of an estate or a trust is schedule K-1. Since there are a few different types of K-1 forms, it’s important to understand...