Tax Policy Updates & Impacts - The 2017 Tax Cuts and Jobs Act has implications for federal income tax brackets, standard deductions, and state and local tax (SALT) deductions [1] - New federal and gift estate tax rates affect clients [1] - Changes to inherited IRA laws require potential heirs to be informed [1] Tax Management Strategies - Strategies for managing tax liability in retirement include withdrawal strategies, Roth conversions, and charitable contributions [1] - Estate planning strategies, such as annual gifts and the lifetime estate tax exemption, can help efficiently transfer wealth [1] - Fidelity suggests considering Roth conversions as a tax management strategy [1] - Tax-efficient withdrawal strategies are available for retirement income [1] - Trusts can be used to help manage taxes [1] Investment & Business Tax Considerations - Special tax considerations exist for small business owners [1] - Strategies can help reduce taxes on investment income [1] - Strategies can help reduce taxes on mutual fund shares [1] - Tax planning should be incorporated into wealth strategy [1]

Core Insights - Generational wealth can incur significant tax burdens for heirs, making estate planning essential for tax-efficient transfers [1] Group 1: Tax Strategies for Generational Wealth Transfer - The lifetime gift tax exemption allows individuals to pass down up to $19,000 tax-free in 2025, an increase from $18,000 in 2024 [7] - An Irrevocable Life Insurance Trust (ILIT) is a useful tool for passing down generational wealth tax-free, as proceeds go directly to the trust upon the insured's death [2][3] - The step-up in basis provision allows inherited assets to be valued at fair market value at the time of the original owner's death, eliminating taxes on unrealized appreciation [4][5] Group 2: Advanced Trust Structures - Generation-Skipping Trusts (GSTs) enable direct asset transfers to grandchildren or future generations, avoiding estate taxes for the intervening generation [6]

Digital Estate Planning Gap - Less than 15% of Americans have an estate plan addressing digital assets [1] - Americans increasingly store important information online, including bank records and family photos [1] Industry Implication - Most estate plans do not account for modern digital property [1]

Core Points - The management of inherited money differs for adults and minors, with minors requiring a trust account due to their inability to manage funds independently [1] - The role of a trustee involves managing the trust funds responsibly and in the best interest of the beneficiary, while also handling any legal issues [2][4] - Trusts may have specific instructions on fund usage, which must be adhered to by the trustee [5] Trust Management Responsibilities - A trustee must comply with IRS rules, including obtaining an employee identification number (EIN) to open a bank account for the trust [4] - The funds must be deposited into a trust account, which can be set up at a bank, credit union, or brokerage firm [4][6] - The trustee has a fiduciary duty to act in the best interest of the beneficiary and cannot use the funds for personal benefit [4] Investment Options - A bank or credit union is suitable for simple savings accounts or CDs, providing safe and stable growth [6] - A brokerage firm offers access to investments like mutual funds, ETFs, or bonds, which may enhance the growth of the funds over time [6]

Core Points - Understanding the implications of a mortgage when a homeowner dies is crucial for family members to manage the property effectively [1] - The mortgage is tied to the property, not the individual, meaning payments must continue to avoid foreclosure [1][19] - Family members can assume mortgage payments without triggering the due-on-sale clause due to the Garn-St. Germain Act [2][3] Group 1: Mortgage Responsibilities - Heirs are typically not responsible for mortgage payments unless they were co-signers on the original loan [4] - If a surviving spouse is on the mortgage, they can continue making payments without needing a new mortgage [10] - If the deceased leaves the home to someone in their will, the property goes through probate, and mortgage payments must still be made [11] Group 2: Inheritance Scenarios - The relationship between the deceased and the inheritor, as well as whether the inheritor was on the mortgage, affects the inheritance process [5] - If a surviving spouse is not on the mortgage or deed, the process for assuming ownership can be complicated [9] - In cases where there is no will, state intestate succession laws determine ownership, which can lead to disputes among family members [13] Group 3: Estate Planning Recommendations - Creating a basic estate plan, including a will, can help ensure a smooth transfer of property upon death [14] - Ensuring the property is titled appropriately can prevent complications for heirs [15] - Life insurance policies or transfer-on-death accounts can provide liquidity to cover mortgage payments after a death [16][17]

Core Points - The article discusses the differences between wills and trusts in estate planning, emphasizing that both serve distinct purposes in asset distribution upon death [2][3][4]. Group 1: Wills - A will provides instructions for asset distribution and can appoint guardians for minor children, taking effect upon the individual's death [3][4]. - Wills are relatively simple and inexpensive to create, serving as a baseline document for estate planning [4]. - Without a will, state law dictates the distribution of the estate, potentially complicating matters for the family [4]. Group 2: Trusts - Trusts are legal entities that hold assets managed by a trustee for the benefit of beneficiaries, and they can take effect when assets are transferred to them, either before or after death [5][6]. - Trusts do not go through probate, allowing for private distribution of the estate and potentially expediting the process [7]. - They offer more control over asset distribution, allowing for conditions such as spreading distributions over time or requiring beneficiaries to meet certain milestones [7].

Core Insights - Betterment Advisor Solutions has partnered with Vanilla to provide independent RIAs with special access to an estate planning platform [1][4] - Advisors on the Betterment platform can utilize Vanilla's Estate Health Check at no additional cost, which assesses clients' estate situations [2] - The partnership aims to enhance client conversations regarding estate planning and serves as a prospecting tool for advisors [3][4] Company Overview - Vanilla, founded in 2019 by Steve Lockshin, focuses on simplifying and automating estate planning processes [4] - The company has received funding from notable investors, including Venrock, Insight Partners, and prominent figures like Michael Jordan and F. William McNabb III [4] Industry Trends - The partnership reflects a growing recognition that holistic advice, including estate planning, is essential in wealth management [4] - Firms are increasingly expected to integrate estate planning into their services to strengthen client relationships [4]

Losing a loved one can be one of life’s most difficult experiences. To help avoid making emotionally driven—and potentially harmful—financial moves following a loss, it’s important to be prepared and to have an estate plan in place before something happens. In this session, we cover tips on how to start these conversations with care and confidence, proactive steps to get organized, and other resources to help. 00:00 Introductions 01:40 Why you should financially prepare for the loss of a loved one 05:20 How ...

It’s a good problem to have: too much money saved for retirement and additional funds to leave to your heirs. Will you be one of the many who never spend it all? https://t.co/xJJ1iSkWm0 ...

Your will may not control all your assets. Find out how your ex can inherit from you if you own any that don’t pass through probate and what these assets are. https://t.co/cfYsm5oqEj ...