We recently provided a creative solution to a client's complex problem, and we uncovered some unforeseen benefits along the way. The client's immediate concern was that his IRA would soon be subject to Required Minimum Distributions (RMD) that would force him into a higher tax bracket. He had also expressed interest in making some changes in his planned charitable giving, while still maximizing the amount of inheritance that he would eventually be able to pass on to his heirs.
We crafted a comprehensive strategy that combined carefully-planned Roth IRA conversions, creation of a Charitable Remainder Trust, and revision of an existing Living Trust to account for recent changes to estate tax laws. As a result, the client's tax liability has been reduced, his charitable giving and estate planning goals are being met, he has more flexibility in satisfying cash flow needs, he has a hedge against possible future increases in income tax rates, and he will transfer increased wealth to the next generation without sacrificing his current standard of living.
Would you like to know more? Our complete case study explaining this project in greater detail was recently published in the North Bay Business Journal's 2014 Legal & Accounting Resource Guide. Just email us to request it and we'll send you the case study PDF. Do you have questions about taxes, retirement, investments, gifts or estate planning? Contact us today to learn more about how we can help you!