Wealth preservation involves strategies intended to mitigate risk, while having your investments grow ahead of inflation and taxes. During your lifetime, wealth preservation strategies also help reduce your overall tax exposure. Upon your death, it is intended to reduce or eliminate estate tax, while providing a continuity plan and orderly distribution of assets while avoiding undue legal costs.
People desiring to reduce taxes will typically seek out advisers with technical expertise involving trusts, tax-exempt securities, or insurance policies. These advisers will be very anxious to help you implement a strategy that will lower one specific tax.
Unfortunately, most planners frequently focus on just one of the various estate, gift, GST, capital gains, income or AMT taxes affecting a client’s wealth. This preoccupation with just one or a few of the six common taxes results in planning team members working at cross purposes and making wrong assumptions about the client’s goals. Furthermore, as advisers combine different planning tools, they may not realize how the tools compete for cash flow or interact in a way that undermines a client’s goal of reducing taxes.
SPM uses tax planning tools using a wealth management process that illustrates simple solutions to complex planning challenges. We integrate tax planning techniques with other tools you may use for portfolio management, retirement planning, asset protection, business succession, or other objectives. The process of choosing and integrating tools requires an evaluation of your planning goals in full view of the vision that most inspires you.
Uniting a team of advisers to implement the most effective planning tools is much like bringing together the architect, electricians, plumbers, stone masons, and other builders to construct a dream home. SPM creates a “Wealth Blueprint", so all the team member advisors can review the proposed overall architecture, building materials and then work in harmony to help achieve your overall financial goals.
Read further details on tax planning tools used in wealth management, along with our "Family Wealth Blueprint" case study by visiting our Resource Library