ENG2513. Planning for Sunset Without Bankrupting Your Client (PFP, EST, TAX)

The middle is often a difficult place to occupy in life. For those of modest wealth, the plan is simple: do nothing. For the very wealthy, the first step is equally simple: consume the entire basic exclusion amount (BEA) with gifts ASAP. However, for those in the middle, unsure how the estate tax will apply to their last dollar of accumulated wealth, planning is quite difficult. The best tax-math planning is often to “bankrupt” the client by giving away all their assets during life; however, this is even less appealing than paying estate tax. Therefore, planning for those in the middle requires creativity and a variety of options. This course will cover the challenges and opportunities of estate planning over the coming year.

Learning Objectives:

• Identify the core mathematics of the estate tax and income tax at death/gift.
• Identify the dilemma facing a person undertaking estate planning with $5–$15M of accumulated wealth.
• Evaluate solutions to minimize taxation at death while retaining financial security.