**For illustration purposes only**
This case study continues with the story of Adam and Alice Smith. Please see the “Discretionary Portfolio Management” case study to read about the Smiths from the start.
With a financial plan, insurance, investment strategy and savings plan in place, the team at Clear Sky Private Wealth encouraged the Smiths to consider their estate planning needs.
The Smiths hadn’t had a chance to update their wills since the twins were born, and although they had heard about personal directives and powers of attorney, they didn’t have anything in place. The Smiths also hoped to leave something for their children and grandchildren, but weren’t sure how to factor that into their current plans, especially since the tax impacts of their savings and real-estate holdings at the time of their deaths was so confusing.
A meeting was arranged with Steve Ambeault to discuss the goals Adam and Alice had for their estate, and to ensure that they understood what documents were required to make sure that the wishes were clear for their trustee. Steve was able to provide a referral to a lawyer to help the Smiths update their wills and personal directives.
Referring to the financial plan, Steve was able to point out how much would be left to the twins in the event that something happened to the Smiths prior to and at life expectancy. Lastly, Steve helped the Smith understand how taxes would impact the ultimate amount that would be left to their beneficiaries. The Smiths were surprised to learn just how much tax would be owing, and enquired as to whether there was a way to preserve the value of their estate.
Steve discussed the ways in which taxes could be minimized during retirement, and also provided information on permanent insurance policy options that would help make up for the bite that taxes might take from the Smith’s estate.