proactive planning: how your peers are advising their individual clients in 2014 presented by: lyle...

Proactive Planning: How Your Peers Are Advising Their Individual Clients in 2014Presented by:Lyle Benson, CPA/PFS (Moderator)Susan Bruno, CPA/PFSLisa Featherngill, CPA/PFSRobert Keebler, CPA, MST, AEPLarry McKoy, CPA/PFS

American Institute of CPAs® Personal Financial Planning Section

Introduction

About the PFP Section & PFS Credential• The PFP Section is the premier provider of information,

tools, advocacy and guidance for CPAs who specialize in providing estate, tax, retirement, risk management and/or investment planning advice to individuals, families and business owners. (learn more at aicpa.org/PFP)

• The Personal Financial Specialist (PFS) program allows CPAs to gain and demonstrate competence and confidence in providing estate, tax, retirement, risk management and/or investment planning advice to individuals, families and business owners through experience, education, examination, and a resulting credential. (learn more at aicpa.org/PFS)

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Introductions

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Lyle Benson,CPA/PFS(Moderator)

L.K. Benson& Company

Susan Bruno,CPA/PFS

Beacon Wealth Consulting

Lisa Featherngill,CPA/PFS

Abbot Downing

Robert Keebler,CPA, MST, AEP

Keebler & Associates

Larry McKoy,CPA/PFS

Dixon, Hughes, Goodman


Agenda

Lessons learned from tax season

The true impact of ATRA on financial plans

Managing tax brackets and multi-year planning

Integrating multiple generations in the financial planning process

A shift back to "true" estate planning

Insurance planning considerations

Encouraging clients to take action

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Lessons learned from tax season

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The true impact of ATRA on financial plans

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Impact of ATRA on plans

Increase in tax rates and multiple levels of tax require more planning for tax-efficient investing• Location of assets • Tax-free or tax-deferred vehicles• Consider the impact of state income taxes• Consider the tax efficiency of the investment • Impact on asset allocation

Investment assumptions need to be reviewed, particularly with lower interest rates

Integrate income tax and wealth transfer planning

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Develop a 10-15 year projections for income tax

Tax alpha strategiesTax asset classes

Statutory tax shelters

Tax efficient investing

Asset location

DrawDown strategies

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Use flowcharts to understand impact of estate plans

Plan is not complete until you have:• Checked beneficiary designations• Checked titling• (New!) Communicated to the next generation

Long-term care concerns and planning

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Most clients will not be subject to estate tax, but we need to review their estate plans• Ensure assets pass as intended• Analyze and reflect on work done in past couple of years• Name Guardians, Trustees and Personal Reps

Increased focus on communication and family meetings• Focus on family values and priorities

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For couples who are or could be subject to the estate tax, if assets are…< individual exclusion amount: Evaluate the need to make the portability election to shelter additional asset growth.

< combined exclusion amount: Consider funding a bypass trust to shelter additional asset growth.

> combined exclusion amount: Funding a trust will likely be prudent. Consider:

- Annual Exclusion & Lifetime Gifting- Family Limited Partnerships- Grantor Retained Annuity Trusts- Intentionally Defective Grantor Trusts- Installment Sales to Grantor Trusts- Dynasty Trusts- Generation Skipping Transfer Tax Planning- Qualified Personal Residence Trusts- Split Interest Trusts

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Fiduciary responsibility for life insurance trusts

Term insurance: Pros and cons

Long term care (LTC) insurance: Dramatic market changes especially important to the female client

Life settlements: All bad?

The inheritance “max” and “floor”: An easy conversation to have with clients

Life insurance: High tax rates make life insurance popular

Avoid net investment income tax (NIIT): Indexed universal life

Advantages of private placement life insurance (PPLI)

PPLI = Private placement variable universal life (PPVUL)

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Face-to-face planning meetings• Target meeting with top 50% of clients before August 15th

Standard agenda of topics/goals• Keep at least half of the time for topics on the client’s mind but

not your agenda

Create matrix of top topics vs. top 50% client list

Develop deliverables

Determine clients’ “needs and wants” and balance against financial resources

Develop action list from the meeting

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Questions

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Resources for PFP/PFS Members

Planning After ATRA and the Net Investment Income Tax Toolkit• aicpa.org/pfp/proactiveplanning • Complimentary PFP Section member/PFS credential holder benefit• Includes Bronze Edition of Tax Evaluator, infographic on tax brackets, planning

ideas to use in client meetings, client communication templates, webcast/podcast archives, and more!

More resources on estate, tax, retirement, insurance, and investments (aicpa.org/pfp/resources)

Forefield Advisor (aicpa.org/pfp/forefield) • Client education and communication tool • Written by CPAs, attorneys and other subject matter experts. • More than 3,000 resources covering personal financial planning, including

estate, tax, retirement, investment and risk management planning.

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Upcoming PFP Section EventsWebcasts: free for PFP/PFS members without optional discounted CPE

AICPA Advanced Personal Financial Planning Conference (cpa2biz.com/PFP) – January 19-21, 2015 in Las Vegas

For the full calendar of upcoming PFP Section events, visit aicpa.org/PFP and click on CPE & Events.

To access the archives, visit aicpa.org/pfp/webseminars. *Advanced content available for fee only; discount for PFP/PFS members

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May 20, 2014,1-2:45p.m. ET

Prudent Diversification Practices for Investment Fiduciaries

May 28, 20143-5p.m. ET

Advanced PFP Series: Venn Diagrams: Meet Me at the Intersection of Estate and Income Tax*

June 9, 20141-2:45p.m. ET

CPA/PFS Perspectives: The Seamless Integration of CPA and RIA Firms

June 10, 20141-2:45p.m. ET

Retirement Planning and Issues Related to Aging

June 11, 20141-2:45p.m. ET

The Mathematics of Portability


Statement on Standards in PFP ServicesSSPFPS has been issued and becomes effective on July 1, 2014.

Learn more about the new standard and the resources available to assist you with compliance at the sessions described below.

Save the dates for in-depth webcasts* on SSPFPS:• Do the New PFP Standards Apply to You? (archived)• Understanding the Requirements of SSPFPS (archived)• Practical Applications: Using the Compliance Toolkit (archived)• Leveraging SSPFPS to Elevate Your Practice (Rebroadcast May 21, 1-2p.m. ET)

Upcoming conferences where SSPFPS is on the agendaAICPA Practitioners Symposium and Tech+ Conference June 9-11, 2014 at the Aria, Las Vegas

AICPA Advanced Estate Planning Conference** July 21-23, 2014 at Swisshotel, Chicago

AICPA Sophisticated Tax Planning for Your Wealthy Clients** November 2014 (Date/Location TBD)

Various CPA associations and state societies

*Archives for PFP/PFS members will be available at aicpa.org/pfp/webseminars.

**PFP/PFS and Tax Section members receive additional discounts on the early-bird & AICPA member price.

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CPA/PFS News and Events

PFS Referral Program• Receive 100% credit to apply toward future CPA/PFS dues by

referring a CPA to become a PFS or sit for the PFS exam

PFS Exam• Register now for Summer window• Discounts, sponsorships and volume pricing available

Education Opportunities• Live 2 ½ day review class • In-depth courses in estate, retirement, tax, investments,

insurance, and PFP process• Self-study PFS exam review course

Learn more at aicpa.org/pfp/pfs

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proactive planning: how your peers are advising their individual clients in 2014 presented by: lyle...

Documents

financial planning processa

proactive planning

multiyear planning

financial plans

wealth transfer planning

tax efficiency

tax rates

multiple levels of tax