Individual Consulting / / / / /
Estate Planning Services and Wealth Preservation Strategies
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."
Author Robert Kiyosaki
Where will your wealth end up after you pass away? There are three possible beneficiaries of your wealth:
IRS
Your Family
Charity/Private Foundation
Our goal is to help you pass along the highest percentage of your assets to your family and charitable pursuits — not the IRS.
Who We Are / / / / /
Our Core Beliefs
- Private capital deserves to be preserved
- Net results to the ultimate beneficiaries is our primary focus
- Internal Rates of Return should be maximized as much as possible on Wealth Transfer assets
At TIB Financial Group, we educate our clients about intelligent solutions that help maximize wealth preservation. By making it simple and easy to understand, our clients are able to feel confident and in control of their estate plan.
We have almost five decades of experience with estate planning services and wealth preservation, working with high net worth clients. Discover how our knowledge and drive to succeed can make all the difference for you and your family.
Estate Taxation
The Tax Cuts and Jobs Act of 2017 increased the unified federal gift and estate tax exemption. The 2021 presidential transition will likely lead to a re-examination of large federal budget deficits substantially increased by COVID-19.
In 2020, the estate tax exemption is $11.58 million for an individual and $23 million for a family. Assets greater than this that you or your revocable trust control are subject to a 40% estate tax. Planning ahead is critical for maximizing the value of your assets for the people and organizations you care most about providing for in the future.
Modern History of the Estate Tax*
| Year | Assets Exempt from Tax | Tax Rate on Excess |
|---|---|---|
|
2000 |
$675,000 |
55% |
|
2005 |
$1,500,000 |
48% |
|
2009 |
$3,500,00 |
45% |
|
2010 |
EVERYTHING/NO ‘STEP UP’ |
N/A |
|
2015 |
$5,430,000 |
40% |
|
2020 |
$11,580,000** |
40% |
*author Bill Bischoff May 27, 2020
**sunsets in 2026 and reverts to the 2017 exemption of $5.49 million and inflation adjusted for 2018-2025; excess assets taxed at 40%
Paying for Estate Taxes
Estate taxes are commonly due within six months of the date of death and must be paid in cash. Yet often, estates lack the liquidity to pay that tax. Liquidating income-producing assets like real estate is not cost-effective and inhibits the future income flow and potential appreciation of the asset for future generations.
Many of TIB Financial Group’s clients prefer to keep those long-term income-producing assets in place to grow in wealth, while simultaneously providing instant liquidity through life insurance. TIB Financial Group’s proprietary ParadigmPlan™ is an innovative tool for solving this problem and more.
Wealth Preservation Plan
Many clients accumulate significant sums in pension or profit sharing, 401(k) plans, and IRAs. Yet for many, these funds may not be needed for retirement income purposes.
We created the Wealth Preservation Plan, or WPP™, so that the ultimate beneficiaries of these assets can inherit up to five times their current value — after taxes.
Our team can show you and your financial advisors how the plan works, offering dramatic results for the beneficiaries of your tax qualified plans.
Core vs. Legacy Capital
For our high net worth clients, we calculate the amount of capital or assets needed at an assumed retirement age, so they can live with the financial freedom they desire for the rest of their lives. After adjusting for inflation, accurate estimations of longevity, and their rate of return on invested assets, we calculate an accurate range for necessary retirement capital.
Using our Roadmap™ quantitative planning tool, we can calculate what we describe as “the client’s number” or their “Core Capital.” This is the amount of money they require to fund a secure future based upon our calculations and their estimations.
Assets greater than that “Core Capital” amount are what we call “Legacy Capital.” These assets are not likely to be needed for retirement income purposes. Our approach is to make these assets accessible, should they be needed during retirement, but “lever up” the Legacy Capital assets at death to provide more for beneficiaries.
WIth our extensive knowledge and practice in estate planning services, the team at TIB Financial Group can give you confidence when it comes to preparing for your retirement and estate.
