Sep 21, 2015 | Life Insurance, Retirement, Social Security
The Supreme Court ruling legalizing marriage in all states for same-sex couples is a landmark decision in the equal rights arena. However, the ruling also has important financial and tax implications — implications that same-sex clients now need to be advised upon in order to avoid any planning surprises down the road. While the ruling eliminates the patchwork of state-specific rules that could confuse even the most competent financial advisor, it is critical that advisors in all states familiarize themselves with the important planning issues that same-sex couples now need to consider — whether or not they have chosen to marry. Some of the issues are fairly simple and well-settled, but the subtleties and complexities of the rules need to be considered in order for same-sex married couples to make informed planning decisions going forward. Estate and gift tax issues While same-sex spouses now have the same rights as opposite-sex spouses to inherit from one another even in the absence of a will, federal estate tax rules have evolved in recent years to make it easier for married couples to avoid transfer taxes when passing wealth after death. Same-sex clients are now able to take advantage of these special rules. For example, the $5.43 million (in 2015) exemption is portable between spouses if an election is made on a properly-filed estate tax return — meaning that same-sex couples can now count on shielding a combined $10.86 million from estate taxes without worrying about which spouse technically owns the assets. Same-sex married couples should be advised to review their estate planning documents to take into account the fact that these taxpayers are now entitled...
Sep 7, 2015 | Life Insurance
Where will you be when money is on the move? Will you be positioned properly with a significant number of clients when they experience a life-changing event? Are you staying in touch so that you are their go-to person when those life-changing events take place as they surely will? According to a 2008 study by the Bureau of Labor and Statistics, half of people age 55 to 64 had an average tenure of less than 9.9 years. They may have retired or just changed jobs. Either way, over half of those surveyed could have moved money from their qualified plans from age 55 to 64. There are 108 million Americans above the age of 50 according to the latest data at the U.S. Census Bureau. Establishing a relationship with the client at any level with any product positions the producer so that when the money moves, that producer will have an excellent chance of doing further business with that client. What will establish the relationship? Any amount of assets under management is one answer. It is very dangerous to take the exception for rules and make them a rule. We hear of advisors who only take larger quantities of assets or they don’t want the client. What is not discussed is how they are able to do that. For those of us who are not in a strong enough position to command such rules, we have to fight our way up the ladder to millions under management. In the meantime, how can we make money? Insurance is a great answer. Establishing a relationship with an insurance product and making...
