Category: Estate Planning
Blog
Daniel Brockley
•
Jun 20, 2023
The 2026 estate tax exemption sunset is coming. Here’s what you need to...
For the past few years, most US tax residents haven’t needed to worry too much about estate tax. In 2018, the estate tax exemption was raised to an historical high of $11.18 million ($22.35 million per married couple), which has been raised yearly to adjust for inflation and put it out of sight for most estates. But the same law that raised the exemption, The Tax Cuts and Jobs Act (TCJA), is set to expire in 2026, bringing the estate tax exemption back down to an estimated $6-8 million per person or $12-16 million per couple (adjusting for inflation) –...
Blog
Gene Farrell
•
May 17, 2023
The future of estate advisory: A new way to think about estate planning
[Watch Legacy Now on demand, to learn more about Vanilla’s vision for estate advisory.] I believe that technology – when used thoughtfully – can be truly transformative. And this week at our Legacy Now event, with the help of Vanilla co-founder Steve Lockshin, I had the opportunity to share how Vanilla plans to transform not just estate planning, but financial advising as a whole, with the new Vanilla Estate Advisory Software. The technology itself is only a part of the picture. It’s a tool. It’s the enabler that, when paired with exceptional advisors, will allow for a new kind...
Blog
Vanilla
•
May 11, 2023
What is a power of attorney – and how does it work?
Life is unpredictable. And as a financial advisor, one of the essential parts of your job is to help prepare clients for that unpredictability – whether that comes in the form of balancing a portfolio so that it’s not over reliant on a single company or sector or ensuring they have the right documents in place in case of an accident or health scare. One of these key documents is a power of attorney. A power of attorney (POA) is a legal document that authorizes an individual, known as the agent or attorney-in-fact, to act on behalf of another person,...
Blog
Vanilla
•
Apr 25, 2023
What is a living trust, a.k.a a revocable trust?
A living trust (also called a revocable trust) is a legal document created by a person during their lifetime that directs how their assets are managed during their life, and how they are to be distributed after their death. It can also help bypass or minimize the sometimes expensive and time consuming probate process required by a traditional will. A living trust is typically used in conjunction with a short will that directs all assets held in the individual’s name to “pour over” to the revocable trust on death (referred to as a “pour-over will”). This living trust estate planning...
Blog
Vanilla
•
Apr 07, 2023
Communicating Between the Lines: Using Letters of Wishes to Guide Trustees
When it comes to estate planning, there’s no substitute for having the right core legal documents drafted, and ensuring they align with your clients’ wishes. But no matter how carefully estate planning documents are drafted, it’s impossible to anticipate every eventuality – and, the truth is, life often moves faster than clients do when it comes to updating their documents. One great way to bolster an estate plan against the unexpected, and to help trustees make decisions in accord with client expectations, is through letters of wishes. What is a letter of wishes? A letter of wishes is simply a...
Blog
Daniel Brockley
•
Mar 15, 2023
The Advisor’s Advisor: Michael DiFiglio uses his experience at Ayco & Goldman Sachs...
Creating a truly remarkable product is rarely one person’s doing. It takes a team of smart, talented, dedicated folks to make it happen – a diversity of experience and perspectives. At Vanilla, we have a crack team of product designers and engineers who have brought our platform to life and continue to evolve it and make it better. But in addition to dialing in our tech, we need to always keep tethered to the realities of the finance industry – to the needs of advisors and attorneys – and their clients. That means that we all spend a lot...
Blog
Vanilla
•
Mar 08, 2023
11 Common Estate Planning Mistakes to Avoid
These common estate planning mistakes could leave your clients vulnerable to unintended consequences such as probate, loss of assets in a divorce, and avoidable estate tax liability. Financial advisors can help their clients avoid the 11 most common estate planning mistakes listed below. #1 Not updating estate planning documents regularly Some clients may think that creating an estate plan is a one-and-done proposition, but you should review and update your client’s estate plan with them when they experience any of the following: Major life events: Your client’s estate planning documents should reflect significant milestones, such as having a child, getting...
Blog
Daniel Brockley
•
Mar 02, 2023
Process Matters: Why “bespoke” is not enough when it comes to estate planning
Part I in a series of 3 on The Vanilla Estate Planning Playbook. Talk to any financial advisor out there, and you’ll hear a common refrain: Sure, we do estate planning. The thing is, what advisors mean when they say they do estate planning varies wildly. For many, doing estate planning simply means asking clients if they have basic documents in place, such as a Will, trust(s), healthcare directive and power of attorney. If the client has docs, the financial advisor moves on to other matters like investments. If they don’t, they refer the client to an estate attorney...
Blog
Vanilla
•
Feb 28, 2023
What is a pour-over will? The essentials financial advisors and their clients need...
Once a client has their last will and testament (“will”) and revocable trust created, their financial situation doesn’t just stand still. More often than not, a client’s financial situation will fluctuate throughout their life. A pour-over will brings added security to an estate plan–making room for all of those potential life changes–by allowing for new and unaccounted assets to automatically transfer to a previously set up revocable trust. This helps keep up with asset changes between times when your client updates their will and trust. What is a pour-over will? A pour-over will is a last will and testament that...