By Jeffrey M. Verdon, J.D. Advising your clients on establishing and funding an offshore asset protection trust (APT) can be challenging. After all, what client wants to spend tens of thousands of dollars to take preventative steps against something they just don’t expect to happen? It is a lot like the decision a person goes through when buying a life insurance policy. I have never met a widow who thought her husband was over insured, but convincing the insured to purchase a policy can be a challenge. So it is with the offshore APT – the client must be sued…
Some Magical Aspects of Life Insurance
By Jonathan G. Blattmachr & Matthew D. Blattmachr Life insurance is one of the least understood financial products in the world. In just a few minutes of study, one can reasonably grasp the concept of equity interests in a business (e.g., common stock, preferred stock), bonds and other forms of debt. Even more complicated financial products, such as derivatives and options can be readily understood. However, even some people who have spent a career in the life insurance industry do not really understand the financial aspects of this product. Indeed, after finishing a lecture on how life insurance “works,” a…
A Monthly Meeting You’re Not Allowed to Miss
By Philip J. Kavesh, J.D., LL.M. (Taxation), CFP®, ChFC, California State Bar Certified Specialist in Estate Planning, Trust & Probate Law In an earlier article I talked about the importance of setting goals for the year and clearly communicating them in a motivational way to your associate attorneys and staff at an annual “kickoff” meeting in January. As a follow-up to that meeting, you should also be holding a once a month firm meeting to continue the momentum towards achieving your goals. This monthly firm meeting is a very important one that you simply cannot miss (nor can anyone else)….
Tax Alpha®: What Sophisticated Counselors & Advisors Needs to Know—Part 1 of 2
By Robert S. Keebler, CPA, MST, AEP (Distinguished), CGMA In the world of finance, “Alpha” is often referred to as the value a money manager generates by exceeding a particular benchmark. In the world of financial planning, Tax Alpha® is best defined as the value financial advisors add by reducing the tax burden on portfolio income – “After all, it is what you keep not what you earn that counts.” A thorough knowledge of the intersection between tax and finance will allow an advisor to substantially reduce a client’s overall tax burden. The heart of Tax Alpha® for most clients…
More Clients, Better Clients
By Joseph J. Strazzeri, Esq. Quality referrals are the lifeblood of a growing practice. New clients tend to come from one of four sources: 1) current clients, 2) other advisors, 3) educational events, and 4) the internet. For the practitioner that does the technical work and markets the firm, it is critical to understand whether you want more clients and/or better clients, and to have a plan on how to obtain them – because there is only so much time in a month. Time management and a team-driven, repeatable process offer not only a great business solution but a quality…
What’s the Truth About Life Settlements?
By Daxton Fryer, Senior Life Settlement Analyst Whether you call it a life settlement, a lifetime settlement or a senior settlement, Life Settlements have become a very popular option for today’s financial planners and trusted advisors and their clients who may want to cash out their life insurance policies. Life Settlements have also become a powerful option for corporations, trusts and individuals who have poorly performing or thinly funded senior client policies. This specialty is fast becoming a mainstream financial planning tool for insurance agents, CPA’s, tax attorneys, estate planners, elder law attorneys and trust companies. As a financial professional,…
Top Five Life Insurance Myths
By Steven J. Oshins, J.D., AEP (Distinguished) Understanding life insurance is important for everybody in the estate planning industry. Whether you are a financial advisor, an attorney, an accountant or a banker, you have plenty of opportunities to help your clients make good life insurance decisions. With any complex topic, there are always myths that exist that cause people to make bad purchase decisions. The life insurance industry is no different than other industries in that numerous myths have been repeated over and over through the years. MYTH #1- Buying term insurance and investing the difference is better than buying…
Naming IRA Beneficiaries
By Robert S. Keebler, CPA, MST, AEP (Distinguished), CGMA Earlier this year, the IRS released PLR 201417027 in which it refused to extend the deadline to begin required minimum distributions (RMDs), for taxpayers who were not even aware that they were beneficiaries of a decedent’s retirement plan. Because of their seemingly innocent mistake, the missed RMDs might be sliced in half by the 50% excise tax for missed distributions under IRC § 4947(a) and the beneficiaries might be exposed to negligence and understatement penalties under IRC § 6662. This ruling is a reminder of the importance of proper naming of…
I Had a Successful Practice, Now What?
By Joseph J. Strazzeri, Esq. At industry conferences you hear it all the time. The first day is all about friends connecting and sharing their successes since they last saw each other. Over dinner and wine, or maybe the next day, you start to hear the challenges they are facing such as fewer clients, lower compensation, more hours, and administrative team breakdowns. Practitioners that have been in the business more than half-a-dozen years have seen these ups and downs of market driven forces, and they no longer try to address the symptoms, but rather the underlying cause. Understanding that the…
Top 10 Things Every Advisor Needs to Know About Inherited IRAs
By Michael J. Jones, CPA | Volume 2, Issue 6 (June 2014) In my practice, I’m seeing an increase in inherited Individual Retirement Accounts. That’s alerted me to an ever-increasing need for practitioners to review not only how IRAs fit into clients’ financial planning, but also to review and advise them properly regarding the beneficiary form and other key issues. Here are some things advisors and their clients need to keep in mind. An IRA is a ticking tax bomb. Unlike other assets, the income tax basis in an IRA inheritor’s hands will not be its fair market value upon death….