Scenario One
An affluent couple came to our office, asking if there was a way to avoid taxes on the husband’s $2 million IRA Account. They had no need for additional income from the IRA to support their retirement lifestyle, and they only accepted required minimum distributions (RMDs) to avoid income tax penalties from the IRS. Their hope was to grow the IRA Account to maximize its inheritance value for children and grandchildren.
We designed and facilitated the exchange of the IRA account that would eventually be subject to ordinary income taxes, for a $4 million guaranteed income tax-free and estate tax-free inheritance for younger generations, at no out-of-pocket cost to the couple.
Scenario Two
Another couple—open to fresh ideas and smart planning—came to us with a $3M net worth and a desire to protect the surviving spouse in retirement and maximize what their children would eventually inherit.
The results (detailed below) unfolded exactly as designed—from the husband’s death to the wife’s passing 7 years later—demonstrating the lasting impact of informed and proactive planning.