FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Estate Planning: A Holistic Approach

Aug 1, 2018
August 2018

UTILIZING A HOLISTIC APPROACH to estate planning is critical, particularly when determining how property will be distributed and the associated tax consequences. The role of advisors is to work in harmony with the client in order to understand the client’s testamentary objectives and what the client wants to accomplish with his or her wealth while alive.

The holistic approach focuses on the importance of a thorough review of each client asset: how it is owned, its cost basis, when the asset will pass and to whom, how it will pass (by will or by operation of law), what taxes are attributable to such asset and who will pay the taxes and with what money. Once these facts are determined, a proper estate plan can be implemented. Additionally, the importance of an estate tax allocation provision cannot be overlooked if the estate plan is to best reflect the client’s desired intentions.

A will only controls the distribution of so-called “probate assets.” If the client or attorney fails to include all the professionals the client employs, the resulting estate plan can lead to unintended or even disastrous results. Attorneys, accountants and financial advisors who stay in close communication after an estate plan is established are able to communicate changes in the client’s life that may require an adjustment to the plan.

When developing an estate plan, it is extremely important to know how assets are owned, or the title of the assets. The holistic approach — including determination of the current asset ownership, future appreciation/depreciation, income potential and so on — provides an attorney with the knowledge necessary to prepare the most comprehensive estate plan for a client. When identifying each component of a client’s taxable estate, the advisors not only gain a better picture of the estate today but also a better representation of the estate in the future when the documents will actually be utilized to settle it.

Too often clients hire an attorney only to draft estate planning documents and fail to communicate this to their other advisors. Consequently, the attorney might rely on sparse information or recollection from the client about assets, how they are owned and their values. If the attorney develops an estate plan and prepares documents based on inaccurate information, the result might run afoul of the client’s goals. Clients may not understand certain taxable assets or interests, such as holding a general power of appointment, having a qualified terminable interest property or an incident of ownership in a life insurance policy. Worse, the client may not be aware of such interests. By employing a team approach, the attorney stands a much greater chance of learning about the entirety of the client’s assets and circumstances. If this does not occur, the result might be disappointment or controversy when beneficiaries discover certain heirs benefit in a disproportionate manner.

It is unfortunately common to see disastrous outcomes like this when a holistic approach is not utilized in developing an estate plan. Professionals should be encouraged to communicate with each other — not just the client — when preparing any part of an estate plan. Clients are typically fee-conscientious and reluctant to get all of their advisors involved because they do not understand the significant added benefits they receive in the end.

Next month we will discuss the difference between probate and non-probate assets and the importance of estate tax allocation provisions.


FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.


Insta Feed
Aug 12, 2022

New COMO Journeys in Thailand, Indonesia, Bhutan, Australia

COMO Hotels and Resorts offers travelers new immersive luxury retreats for 2022. Perfect for couples, small groups or solo travelers, the new COMO Journeys are available to book in Australia, Bhutan, Indonesia and Thailand.

United’s 100 Percent Green Commitment to be Carbon Neutral by 2050

United Airlines remains firmly committed toward sustainability in aviation. The latest development in its eco-conscious goals includes working with Oxy Low Carbon Ventures to commercialize the production of sustainable aviation fuels (SAF) with biotech firm Cemvita Factory. Cemvita looks to develop a revolutionary new way to produce SAF by using carbon dioxide and synthetic microbes. Additionally, United Airlines Ventures (UAV) recently announced an equity investment in Fulcrum, and United has invested more in SAF production than any other airline in the world.

Aug 12, 2022

High Tea at Anantara Chiang Mai Resort Thailand

Anantara Chiang Mai, the deluxe resort on the banks of Thailand’s Mae Ping River, relaunched the city’s most famous high tea experience, served on the terrace of the 100-year-old British Consulate that today houses the resort’s Service 1921 Restaurant & Bar.

Aug 12, 2022

Hotel Bel-Air Hosts Wolfgang Puck’s End-of-Summer BBQ

The Hotel Bel-Air hosts a new end-of-summer BBQ with Master Chef Wolfgang Puck on the lawn of the hotel. The event is back after a three-year hiatus, set to take place Sept. 6. Guests will be able to enjoy an evening featuring backyard-style barbeque and seasonal summer favorites.

6,000 Reasons and More to Celebrate!

IHG® Hotels & Resorts certainly has a lot to celebrate, starting with an incredible growth story. Over the past five years, IHG has acquired or launched six new brands: Six Senses® Hotels Resorts Spas, Regent® Hotels & Resorts, Vignette™ Collection, voco™ hotels, avid® hotels and Atwell Suites™. Most recently, IHG reached an important milestone with its 6,000th open hotel. The company looks to further expand its portfolio by 30 percent with 1,800 hotels in the development pipeline, with significant focus on growth in the luxury segment where IHG is positioned as one of the top two hotel chains.

Aug 11, 2022

The Oberoi Marrakech’s New Wellness Program

The Oberoi, Marrakech introduces its new holistic wellness program, SAHA. Meaning health in Arabic, SAHA aims to help guests reach their full wellbeing potential. The program operates on four key cornerstones: soul & spirit, active body, holistic treatments and a better plate.

Aug 10, 2022

The Hard Days Night Hotel Liverpool

A never-before-heard broadcast interview with John Lennon recorded in 1964 has been won at auction by Hard Days Night Hotel, the only Beatles-inspired hotel in the world, located in Cavern Quarter in Liverpool.

8 Reasons to Press the Green Button and Visit Ireland

Start planning that long-awaited trip to the island of Ireland. With all travel restrictions now lifted, there has never been a better time to visit.

eFlyer News
Aug 10, 2022

Emerald Cruises’ Newest Star-Ship, ‘Emerald Luna,’ Christened in Amsterdam

Emerald Cruises christened its newest Star-Ship, Emerald Luna, in a ceremony in Amsterdam as it prepares to sail the Rhine, Main and Danube rivers of Europe. Equipped to host up to 180 guests, Emerald Luna saw many members of Scenic Group, the parent company of Emerald Cruises, attend the ceremony, including U.S. travel industry advocate and educator Vanessa McGovern, who took honors as godmother during the ceremony.