Category: Estate Planning

Daniel Brockley

•

Mar 02, 2023

  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...

Vanilla

•

Feb 28, 2023

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...

Vanilla

•

Feb 09, 2023

When it comes to estate planning, there is often a lot of focus on avoiding delays, reducing costs, and making things easier for loved ones. One topic that comes up again and again in these conversations is probate. Clients may not always understand what it involves, but they know it is something they want to avoid or simplify. As a financial advisor or estate planner, helping clients prepare for probate can make a big difference in how smoothly their estate is handled. From guiding clients through the planning process to helping them put the right documents in place, your role...

Daniel Brockley

•

Feb 02, 2023

In 2021, Americans gave a whopping $484.85 billion to charities, a 4% increase from 2020. And that doesn’t account for gifts to family and friends outside of official charity organizations. Simply put, gifting is a huge part of our economy. Our guide provides a great refresher for advisors, and can also be given to clients to help educate them on their options when it comes to giving. Why consider giving? People choose to give for a variety of reasons, but there are two primary drivers that gifting has become such an important part of people’s lives (and their financial plans)....

Vanilla

•

Jan 26, 2023

Estate planning presents a significant challenge when substantial assets could face hefty taxation after death. Irrevocable Life Insurance Trusts (ILITs) offer a strategic solution as specialized legal vehicles designed to own life insurance policies during your lifetime. By keeping insurance proceeds outside your taxable estate, these trusts help beneficiaries avoid the steep 40% federal estate tax that would otherwise diminish their inheritance. ILITs serve dual purposes by either creating immediate liquidity for families or preserving estates by covering tax obligations without forcing the sale of illiquid assets. Business owners, real estate investors, and families approaching the federal estate tax threshold...

Vanilla

•

Jan 24, 2023

If something should happen to your clients, regardless of their age or income, it’s crucial that they have a plan for their financial assets. As their financial advisor, you’re in the best position to keep your clients on task so they can reach their goals and ensure their families are taken care of. But between a myriad of documents, individual state requirements, and shifting federal estate tax laws, it’s no wonder the estate planning process can be overwhelming for financial advisors and their clients. That’s why we’ve created this easy-to-follow estate planning checklist. We’ll give you clear insights into a...

Vanilla

•

Jan 17, 2023

In a grantor retained annuity trust (GRAT) , a grantor transfers a particular asset(s) into an irrevocable trust and retains an annuity stream from the trust for a specified term of years. The annuity amount is calculated based on an IRS interest rate (referred to as the “hurdle rate”).  At the end of the trust’s term, if the grantor survives the term of the trust, any assets remaining in the GRAT (the appreciation above the hurdle rate) will pass transfer-tax-free to the named “remainder beneficiary”, generally a trust for family members. How does a GRAT work? Grantor retained annuity trusts...

Vanilla

•

Jan 10, 2023

Many people have charitable intentions that they would like to consider as part of their estate planning. However, donating assets outright during their lifetime may not meet their financial goals. A more advanced estate planning strategy, such as a charitable remainder trust, may provide the flexibility to meet their personal financial needs while guaranteeing that a charity or charities end up with the remaining asset at the end of the term or when the settlor/donor is no longer living. When to use a Charitable Remainder Trust (CRT): When you are charitably inclined; and, You have highly appreciated securities you would...

Vanilla

•

Dec 06, 2022

I am not an expert in estate planning. That may be a strange thing to admit for someone who runs a company focused on estate planning. What I do well (and what I find enormously rewarding) is identifying difficult problems, and – with the collaboration of great teams – use technology to solve them. When it comes to identifying which challenges to take on, I am drawn to areas where solving the problem can create real impact for individuals, families, and society. Estate planning is exactly this type of problem because it touches almost everyone. Helping individuals and families define...