Ellen and Clark are in their 80s and have lived wonderful lives, taking rewarding vacations and spending time with family. They consistently saved their money over the years and received a modest inheritance when Ellen’s parents passed away. Having accumulated a substantial net worth, the issue they are concerned with now is the tax implication for their children when they pass. Included in Clark’s and Ellen’s assets is a large IRA with more than $1 million, several properties, CDs, and after-tax investment accounts.
Questions They Faced
- How can we avoid saddling our children with a lot of taxes after we pass?
- How can our children benefit by using some of the money now while also earmarking some gifts to our grandchildren?
How We Helped
After thoroughly reviewing all the moving parts of their financial situation, we implemented two strategies: one was a Roth conversion, and the other was a donor-advised fund. We also helped set up a 529 college savings plan for their grandchildren.