The Senate and House tax bills differ on issues such as the timing of investment sales, the future of the estate tax and the fate of the alternative minimum tax. Be sure to watch the Tax Reform Resource Center for breaking news on tax reform. PFP/PFS Section members should also read the weekly PFP Section News, issued on Wednesdays, for resources and planning ideas.
Official guidance is lacking for required minimum distributions from a trust that gives power of appointment to the trust's beneficiary. However, there are strategies for reconciling RMDs with a power of appointment.
Effective planning can often allow clients to alleviate the burden of the estate tax. Even if the tax is repealed, trusts will likely remain popular for the benefits they can provide in areas such as asset protection, privacy and promotion of fiscal responsibility.
Various strategies can minimize the tax bite of required minimum distributions from retirement accounts, both for those who have reached retirement age and those who simply wish to plan ahead. This article explores several tactics, including use of the still-working exception and qualifying longevity annuity contracts.
College cost planning is an increasingly important tool for planners to use in providing value for clients. The inflation rate of college costs varies depending on several factors, including the type of institution a student attends and its location. Check out this video for more information on how to advise students and families on planning for education expenses (for PFP/PFS Section members).
Long-term tax planning can be tricky for high-net-worth clients given uncertainty about tax policy. However, it may be prudent to anticipate certain changes, such as potential modifications to the way Social Security benefits are calculated. Access in-depth tax and other financial planning strategies for high-net-worth clients in The Adviser's Guide to Financial and Estate Planning (free access for PFP/PFS Section members).
Advisers should strive to communicate with clients on a regular basis in a way that is relevant to them. Segmenting clients can allow advisers to communicate more effectively as they use channels such as social media, email messages and textual materials. PFP/PFS Section members get a FREE subscription to Broadridge Advisor, a client communication tool that contains over 3,000 customizable articles, presentations, calculators and more resources to use with clients.
Employers tend to have a more positive outlook about the impact of their wellness programs than employees do, according to a survey by Willis Towers Watson. The survey finds access to on-site clinics tends to be associated with a favorable perception of wellness programs among employees.