MULTIGENERATIONAL FINANCIAL AND TAX PLANNING FOR CLIENTS
Many clients overlook planning that takes into account not only their own issues but also the needs of other generations above and below of the extended family unit. Advisors can help achieve tax and financial planning objectives for multiple ties within the family. This course will explore various techniques for different net worth/income levels of generations.
- Using the trans-generational IRA to benefit lower-income parents
- How to take advantage of the Roth IRA
- Income-splitting and the creation of earned income for lower and higher generations
- Qualifying higher-generation members as dependents
- Medical expense: how younger generations can help higher-generation members
- Elder care planning: reverse mortgages, Medicaid eligibility
- Checklist of documents each generation needs
- Loans and gifts that may reduce or eliminate the net investment income tax
- Role of trusts in multi-generational planning
- Ownership of real estate: does the QPRT make sense?
- Succession planning: transferring a business interest; use of voting and nonvoting stock; planning for redemptions; special problems of LPs, LLCs, and partnerships; buy-sell and other restriction agreements
- Identify transactions that may benefit multiple generations in a family.
- Understand how the net investment income tax impacts various tax and financial planning strategies.
- Understand structuring of a business and the transfer of interests in a family-owned business.
Designed For: CPAs who provide tax and financial advice to clients within multiple-generation family structures
Level of Knowledge: Intermediate
Prerequisite: Prior experience in advising clients on individual and financial planning issues
Advanced Preparation: None
Field of Study: Taxes(8)
CFP Credit: Yes