I am only 36 yr old and have been in the financial planning field for 8yrs. My clients average age is 67 and
Seeing the average portfolio of these clients go from $500k to over $1 million plus in the 8yrs, due to stock values, particularly Exxon, Shell, etc. and company retirement, pension programs, property liquidation and less risky market strategies-all equals a surge of compounded growth.
Today, 90% will own $300-$500k of stock options with a low cost basis intended to pass down so, they fail to count this as part of the estate. What I desperately try to educate them on is the possibility of the loss of the step-up basis and the impact of taxation of the estate at time of death. 90% believe they are not going to be affected and have not considered any countermeasures mostly, because they do not think they will exceed the limits … today. after a full snapshot of estate, including current income vs. earings, RMD’s, etc. and a future projection of growth DURING Life expectancies, they cant believe the actual”net” worth today and in the future.
Where this client thought they just had 1.5million plus with home and nothing to worry about regarding estate tax/death tax, they are right but, lets not forget about living for just 6 years (2011) of 15 life expectancy at 70.
No step up on that stock to the kids they NEVER gave away. They do not know what the step up is or had knowledge that they will lose it. Nobody has informed them, until now.
Thank you for having this site. I will pass it on and use your real facts to all that are lost.