Legacy and Tax Planning

It can be a common misconception that legacy planning is only necessary for the wealthy, but this simply isn’t true. There are plenty of reasons why you should do legacy planning, regardless of your net worth. For one thing, this can help define who inherits your assets. It also determines who may be the guardian of your minor children or any dependents with special needs. The components of legacy planning usually include a will, a durable power of attorney and a medical power of attorney.

Essentially, creating an optimal strategy for your legacy is more than just managing estate taxes … it’s about organizing your assets so they pass to your family, loved ones or a charity in the manner you wish. It’s about maximizing how much you leave behind, while potentially helping to ensure that your financial needs are taken care of for the rest of your life.

Establishing a Trust

In order to ensure your family receives the assets you have accumulated during your life, it’s critical to develop a legacy plan.

Regardless of how much money you have, we feel legacy planning is the best way to protect the financial interests of your family when you are no longer there to do so.

Keep Good Records

Another key facet of legacy planning is keeping good records, not just of your assets, but also of documents that describe your wishes. For example, not only should your will outline who you want to inherit your assets after you die, but also who you’d like to manage your finances or make medical decisions for you in the event that you are incapacitated. These documents are helpful because they reduce the time and expense of estate settlement, which makes it easier on your heirs.

If you have worked with someone in the past, and you THINK your legacy is properly structured, it may not be. It’s likely that your situation has changed since you last examined this part of your financial picture, and it’s important to make sure your plan still reflects the legacy you want to leave behind.

Perhaps the most impactful piece of retirement planning is determining your current and future tax liability and developing strategies to potentially minimize the amount of taxes you pay in retirement. Tax planning can have a large impact on the amount of wealth you will be able to transfer to your legacy. We may help ensure that your retirement plan is tailored to utilize both tax advantaged and taxable products to help certify you and your heirs are potentially maximizing wealth for generations to come.

Tax Planning

Working in concert with your personal tax professional or our partnership with local CPA firms, we may be able to provide tax reduction strategies that can result in years of tax savings.

We strive to implement a sound, well-thought-out financial strategy to minimize year-to-year tax liabilities and provide the opportunity to maintain your current standard of living throughout retirement.

Synergy Financial Group does not provide tax and/or legal advice, but will work with your attorney or independent tax or legal advisor. In the event that you do not have your own attorney or tax professional we will partner with local CPA firms to provide tax services.