Enjoying Retirement

Josh Motlong

Case Study

Enjoying Retirement

The Original Situation

  • Couple was in their 50’s and had 3 children.
  • Family’s wealth was highly concentrated in one stock – the family business that went public.
  • Had way more income than they needed and were paying more in annual income taxes than necessary.
  • Wills created multiple trusts that would provide a substantial income to their children and assets to their future grandchildren.
  • Wanted to provide their children a lifetime inheritance as well as a post-death inheritance.
  • Had a very large insurance policy that they didn’t need and it was going to lapse because it was performing poorly.
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The Strategies

  • We created a strategic giving plan that enabled them to give stock and cash to utilize the maximum income tax deduction.
  • We eliminated the provision in their Wills that provided assets to their future grandchildren.
  • We developed a Children’s Trust to provide the entire lifetime and post-death inheritance to their children.
  • We did a 1035 exchange of the insurance to an annuity which allowed them to surrender the policy, receive the cash value, and receive income tax savings for the performance loss.
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The Results

Original Plan New Plan

Maximize Family Value

Lifetime Income: Decreased 15%

Lifetime Inheritance: Increased 1000+%

Post-Death Inheritance: Decreased 94%

Minimize Taxes

Income Taxes: Decreased 31%

Inheritance Taxes: Completely Eliminated

Optimize Giving

Lifetime Giving: Increased 101%

Total Giving: Increased 45%

Case studies are for informational and illustrative purposes only and not to be considered a guarantee of results.
Actual results will vary with each situation.