Supporting Future Generations and Charity

Situation: An elderly client asked us to help provide for the transfer of assets to his children and also to support a charity in which he had been active throughout his life.

Actions: We reviewed his net worth and investment holdings and analyzed his insurance needs. Based on our projections of the growth of the estate over the next 10 years (including estate tax considerations), we suggested that he fund a Charitable Remainder Trust. This would control growth of the estate, provide annual income for children and eventually support his charity. We also recommended gifting strategies in order to transfer growing assets to family members. In addition, we reviewed the appropriate terms and amount in his Irrevocable Insurance Trust to partially cover the estate tax liability.

Result: Our client was able to transfer assets to his children while minimizing his estate tax liability as well as making a significant gift to the charity.