Wealth Planning Illuminated

Starting a new job at any age or stage may leave you feeling overwhelmed by the new-hire paperwork and benefit selections offered by your employer. Understanding and properly completing employment-related tax and benefit elections can be a key factor to success on your financial journey. 

Both private foundations and donor-advised funds can be effective personal charitable vehicles. While they both allow for strategic giving and an opportunity to create a charitable legacy, they have important differences to consider when deciding which type of charitable vehicle may be right for you and your family.

A common question for a grantor or a beneficiary of a trust is: “How will income in my trust be taxed?” The answer to that question can be complex and dependent on many factors, but there are some general rules for the federal income taxation of trusts that may help answer this important question. 

The SECURE Act and subsequent guidance from the IRS significantly changed how inherited individual retirement accounts (IRAs) must be withdrawn after the owner's death. Understanding the key rules associated with inherited IRAs is important to anyone who is a beneficiary – or may become a beneficiary – of an inherited IRA.

Items of tangible personal property – jewelry, artwork, household furniture and the like – are often collected over a lifetime. Because of the sentiment these items might represent and the inability to easily divide certain pieces, personal items in an estate can often create the greatest source of conflict among beneficiaries. Fortunately, there are several actions you can take today to help avoid – or at least minimize – conflict later. 

Budgeting means creating a unique plan for spending and saving your money: it involves analyzing your income, expenses and financial goals to ensure that your spending aligns with your priorities. There are several steps you can take to create a custom budget for yourself.

The Corporate Transparency Act is a law that goes into effect on January 1, 2024, and will impact many limited liability companies, limited partnerships and corporations. If you own or control an entity — whether for estate planning purposes or as an active business — it is important to know how this new law impacts you and how you can comply.

A philanthropic mission statement can provide clear direction to you, your family and others about your charitable intentions and motivations. Considering your motivations for giving, giving styles and causes can help you craft that philanthropic mission statement, which will guide and inform your philanthropy – today and into the future. 

The current high cost of housing and interest rates can make it difficult to purchase a home. Not surprisingly, individuals often wonder how they can assist a loved one in home ownership. Fortunately, there are several strategies to consider. 

When a married couple owns property, state laws may dictate how their property may be distributed at death or divided in a divorce. It is important to understand how your state of residence treats property ownership of spouses, especially if you are moving to a new state. 

There are many factors that prompt a move to a new state, including location of family, better climate and, of course, taxes. If you are moving from a higher-tax state to a lower-tax state, it can be particularly important to effectively establish your domicile in your new state. 

“Family” is a powerful word, loaded with meanings and emotions. And today, family structures go far beyond historical legal and cultural definitions. For any of today's families, the essential planning questions of yesterday still apply. In general, the special planning considerations for families that differ from “traditional” families fall into a few main categories.

Prenuptial agreements shouldn't be thought of as an exit plan for a marriage or “just” a legal document, but rather a conversation that can help a couple to understand what they could be facing in their marriage and decide for themselves how to handle their financial affairs. Certain considerations may help you decide if a prenuptial agreement is right for you.

There are many types of personal security risks that you and your family may face. Being aware of and managing such risks can help you feel empowered rather than fearful. The process for assessing your risk should follow a clear methodology that identifies areas of vulnerability, followed by a plan for eliminating or reducing those vulnerabilities.

Safeguarding family wealth requires recognizing, acknowledging and preventing exposure to risks—and risks come in all shapes and forms, including people, computers or legal actions. All have the potential to damage your financial security and your family's wealth.

Given the online world in which we live today, it can be easy for an individual's reputation to be damaged. Luckily, there are certain considerations that can help you protect your reputation.

Asset protection may cover everything from how assets are owned and titled, to how they're insured and protected, to how they can be efficiently managed. As you think about protecting your family's assets, there are some tactics that may be right for you and your family.

Most people have little experience dealing with estate administration and are often overwhelmed when they discover they've been appointed to oversee it. While there are many activities involved with administering an estate, you may be able to ease the burden by familiarizing yourself with the process.

At various stages of life—including, retirement, starting a new business, changing jobs, becoming Medicare-eligible—healthcare is one more decision point and understanding and managing it all can be a big undertaking. However, exploring a few topics can help you make better decisions about your healthcare today and in the future.

An aging population is presenting new challenges to families and advisors alike. As we rise to meet these challenges, more attention is being paid to our aging population and its effects on society and individual relationships. Luckily, there is a wealth of resources as well as specific action items that can help smooth the path of inevitable change.

The most effective estate plan is one that covers all the basics in a very practical way throughout your life. While you don't need to have significant wealth to need practical planning, you do need to have a vision for how you want your family taken care of. There are some practical planning steps that can help your estate plan be effective for you and your family as you age.

No matter where you are in your working life, it is important to understand how the various types of incentive compensation may fit into your overall wealth management and retirement plan. There are a few main types of incentive compensation—each with its own pros and cons relative to risk and return, taxes, vesting requirements and impact on your investment portfolio.

Once you decide to convert a traditional IRA to a Roth IRA, the analysis has only just begun. By considering a variety of factors, you can determine the best way to tailor the Roth conversion to your circumstances and wealth planning goals.

Both traditional IRAs and Roth IRAs are powerful savings tools, and it is important to determine with your advisors whether your current IRAs best fit your retirement plan. If you have a traditional IRA and are thinking about converting it to a Roth IRA, certain considerations may help you determine if it is the best option for you.

When you are in retirement and need to start accessing your savings to fund your living expenses, it can be crucial to understand your spending options and the implications of each choice. There are several considerations that may help you determine how best to fund your lifestyle.

As you get closer to retirement, it is important to understand whether you are on target to achieve your goals. Putting together a financial plan -- and regularly revisiting it -- can help you assess your progress and provide the opportunity to make any necessary adjustments along the way.

While retirement may seem far away when you are in your 20s and 30s, starting to plan during those earlier years can make a big difference. There are a few steps that you can take now to help your retirement be more successful in the future.

For many, retirement is one of their most important goals, but planning how to get there can sometimes be overwhelming. Whether you are in your 20s, your 70s, or somewhere in between, answering a few questions may help you factor in the right information and begin your path to retirement planning.

Whether you have only begun to consider incorporating philanthropy into your wealth plan, or already have well-defined goals and aspirations, a few strategies may help you effectively achieve your charitable giving goals.

A path to achieving a philanthropic goal must be actionable, yet flexible. When determining your philanthropic path, its important to articulate what you want your shared philanthropic venture to look like, and map out the steps to get there. There are often three steps that are involved in the process once you've identified your philanthropic cause.

As interest rates begin to rise, now may be a good time to consider certain estate planning strategies that leverage lower interest rates. Implementing such a strategy and locking in a lower interest rate today may allow more wealth to be transferred at a reduced cost.

With strategic philanthropy, it's important to first determine a cause or purpose you and your loved ones want to gather around because supporting a specific cause allows you to focus both your time and money. Fortunately, there are questions to ask and steps to take that may help you and your loved ones identify which cause is most important to you.

Philanthropy may be an important component of your wealth planning. A philanthropic giving plan can be implemented most effectively once you determine your goals, develop your personal philanthropic approach and get started.

It's easy for personal financial planning to fall through the cracks when you're trying to run a business and see the sale process through to completion. However, a large liquidity event can be life changing, especially with no plan in place. Before you head for the exit, there are considerations that may help you plan for the transition.

The decision of when and how to sell a privately held business is often based on three factors: economics, emotion and need. When a business owner eventually decides to exit the business and sell to a third party, the future can suddenly become very uncertain. If you're thinking about selling your business to a third party, several considerations can help you position yourself for success, both pre- and post-sale.

A challenge for any business owner is knowing when and how to transition leadership. If you run a family business, the decision can be even more complex as family harmony and relationships are often at stake. If you have a strong desire to keep your business within your family, certain considerations can help you prepare for a successful transition.

Delaware has been at the forefront of trust law since the beginning of the twentieth century. Many states, including Alaska, Nevada, and South Dakota, have followed in Delaware's footsteps to create flexible and useful environments for trust grantors. Still,the original value proposition created by Delaware offers distinct advantages over states that have followed suit.

Trusts can offer broad flexibility for structuring and managing assets. If you're considering transferring your interest in a privately held business to a trust, you'll need to decide where to establish that trust. Delaware is often considered an ideal choice for the governing law of a trust that owns an interest in a privately held business.

When you're creating a trust for the benefit of yourself or your family members, choosing the state law that will govern it has many implications and potential benefits for you and your beneficiaries. Delaware has long been the state law of choice for grantors. There are many reasons why Delaware law can benefit you and your family.

If you have adult children, it's natural to want to help them financially. Fortunately, there are strategies that may allow you to avoid paying certain taxes when funding education expenses. By understanding these strategies, you can select the ones that make the most sense for your family.

While federal estate, gift and GST tax exemption amounts provide a significant incentive to review existing estate planning and consider implementing new planning strategies, it's critical to consider the need for flexibility so that trusts can adapt to changing times, circumstances and tax laws. Maximum flexibility can help the next time the law or family circumstances change – and they will.

Meet Senior Wealth Strategist Theresa Marx. In this podcast, Theresa explores a variety of wealth planning concepts with her colleagues to help you identify and accomplish your wealth planning goals.

Depending on your circumstances, gift planning with real estate can be an effective way to take advantage of your exemption amount without hurting your liquidity. Of course, there are many items to consider when transferring a piece of property to others, including the right structure, the terms, and the tax benefits. Fortunately, a few key strategies may help you transfer real estate in a tax efficient manner. 

There are many reasons to make gifts to younger family members in trust for their benefit rather than outright. Some of the benefits include asset protection, tax planning, and family control. When creating a trust for many generations, one common strategy is a dynasty trust. Dynasty trusts have two unique aspects that make them an attractive wealth transfer strategy

When planning for the transfer of your wealth, you'll likely be faced with an array of options. Whether you are leaving a treasured asset to a loved one or a legacy of trusts that will be used for future generations, specific strategies can be implemented to make the most of your assets.

A life insurance program, when structured and monitored properly, can play an integral role in your estate plan. If you're considering purchasing a new policy—or wondering whether your existing policy meets all of your requirements—considering a few key factors can help you determine the best program for you and your family.

While taxes may not be the primary driver of your estate plan, considering your tax planning options can benefit both you and your beneficiaries. Depending on your financial circumstances, the estate tax and generation-skipping transfer tax have the potential to significantly reduce your estate. Fortunately, there are a few strategies you can pursue to avoid paying more taxes than necessary

One of the goals of estate planning is to maximize the value of the wealth you pass to your family members while minimizing the impact of taxes through trusts. However, an equally important objective is determining what these trusts should provide—and what that means for your family. If you're unsure where to start, answering some basic questions can help facilitate the planning process.

However you define success, envisioning your legacy often requires the peace of mind that your financial affairs are in order—a goal that can usually be achieved by developing a comprehensive wealth plan. Whether you're creating a new estate plan or revising an existing one, a few key considerations can help you effectively meet your objectives.