Why Does Estate Planning Matter to Your Clients?

Posted by Robert L. Arone In 2008, Congress recognized the need for the public to understand the importance and benefits of estate planning by passing House Resolution 1499, which designated the third week of October as National Estate Planning Awareness Week. Nevertheless, according to a 2019 survey carried out by Caring.com, 57% of adults in the United States have not prepared any estate planning documents such as a will or trust despite the fact that 76% viewed them as important. Many of the respondents said this was due to procrastination, but many others mistakenly believed that it was not necessary because they did not have many assets. Estate Planning Awareness Week is a great reminder of the need to explain what estate planning is to your clients and why it is crucial for them not to delay putting an estate plan in place, regardless of the size of their estate. What

Modern Uses for Life Insurance Trusts

Posted by Robert L. Arone Since the enactment of the Tax Cut and Jobs Act of 2017, the utility of the irrevocable life insurance trust (ILIT) has been in question. The substantial increase in the federal estate tax exemption–$11.4 million for an individual and $22.8 million for a married couple in 2019—greatly reduced the need for estate planning aimed at lessening federal estate tax liability or offsetting estate taxes for many clients. As a result, your clients may be wondering if an ILIT is necessary. An ILIT Can Still Be a Helpful Planning Tool Depending upon the particular goals and circumstances of your clients, an ILIT can still be a useful planning tool. As a financial advisor, you can enhance your relationships with your clients by helping them to reassess their goals for both the present and the future, providing valuable guidance about how the ILIT may be able to

Income Tax Strategies to Move Your Clients Forward

Posted by Robert L. Arone The 2019 estate tax exemption is $11.4 million per person, up from $11.2 million per person in 2018. According to the Tax Policy Center, only 4,000 estate tax returns were filed this year, with only 1,900 of those returns owing tax. Some industry experts estimate that less than one percent of all estates are taxable. Put another way, over 99 percent of all estates are exempt from estate tax. With the likelihood of clients having a taxable estate being relatively low right now (this is subject to change, of course), it only makes sense that clients focus on income tax planning. As a trusted advisor, you hold a crucial role in ensuring that our clients receive the best comprehensive strategy. Basics of Income Tax What is the income tax? Income tax is a tax paid on an individual or entity’s income that meets certain requirements. Taxable income can

Niche Trusts: A Chance to Collaborate

Posted by Robert L. Arone If there’s one thing we can all agree on, it is that each client is unique. Likewise, our approach to counseling these clients should be tailored to each one’s specific needs. Let’s work together to develop special plans that fit each client’s special circumstances. One key tool to consider is the niche trust. Usually, when we speak about a trust, we mean an “express trust.” An express trust is a three-way relationship between the grantor, the beneficiary or beneficiaries, and the third party, or trustee. The grantor has assets he or she wishes to distribute in a specified way to the beneficiary, and the trustee holds those assets on behalf of the beneficiary. The assets, financial needs, and wishes of each client are particular to that person, so the use of trusts needs to be part of a nuanced strategy. Enter the niche trust.

The Revocable Living Trust: Helping Clients, Growing Your Practice

Posted by Robert L. Arone Prevention Is the Greatest Cure Your clients trust you with their financial future and the legacy they want to leave behind. They rely on you to anticipate challenges, foresee trouble, and take preventative measures. When it comes to a client’s financial wellbeing, it is up to the trusted advisor to know what problems are likely to arise and to have solutions ready to help avoid conflict in the family, waste of resources, and other common pitfalls. One crucial tool to keep assets safe and to ensure they are distributed in the way your client wants is through the use of a revocable living trust. What Is a Revocable Living Trust? A revocable living trust (RLT), sometimes called a revocable trust or living trust, is an alternative to a will. It’s a document that instructs a trustee on how to manage the client’s assets during the

Wealth Counselor

Why Does Estate Planning Matter to Your Clients?

Modern Uses for Life Insurance Trusts

Income Tax Strategies to Move Your Clients Forward

Niche Trusts: A Chance to Collaborate

The Revocable Living Trust: Helping Clients, Growing Your Practice

How Can We Help?

© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

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Wealth Counselor

Why Does Estate Planning Matter to Your Clients?

Modern Uses for Life Insurance Trusts

Income Tax Strategies to Move Your Clients Forward

Niche Trusts: A Chance to Collaborate

The Revocable Living Trust: Helping Clients, Growing Your Practice

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How Can We Help?

© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

Attorney Marketing by Bardorf Legal Marketing

Have A Question?