Net worth analysis
Understand and optimize your net worth
Our clients turn to us when they want to create legacy plans to align with their long-term wealth and lifestyle goals. Many of our clients want to see their assets allocated across accounts and investments that improve the collective well-being of their communities, specifically in Tampa. Our team can help you allocate funds to the causes of your choice and show you strategies that can work to lower your overall tax burden.
Over the course of our lives, we all develop different views of the world, and your net worth analysis should reflect your unique financial priorities and values. In many cases, we choose to build and preserve wealth across all areas of their financial life that gave us so much throughout our lifetime. Whatever it is, we’ll help you gain clarity on how your assets and debts work together to support your future.
Presently, the current regulations affect how different assets and liabilities impact your net worth. Insights are provided on how asset growth, debt reduction, and cash flow affect your balance sheet and, for individuals and families seeking a comprehensive view of their financese gifts can reduce the size of the estate to help minimize estate taxes.
Oftentimes, an individual will designate a charitable beneficiary in their will to benefit the organization after the individual dies. By using charitable gifting techniques, a donor may be able to benefit the charity while living without having to sacrifice the income that an asset can generate. Understanding how properly structured charitable gifts can provide current benefits for both the donor and the charity could be important for the charitably inclined.
Charitable Remainder Trust
A remainder trust enables the donor to transfer an asset while retaining the right to the income it generates. The asset becomes the “remainder” which is owned by the charity. Remainder trusts, if properly structured, can qualify for a current tax deduction, providing immediate tax benefits that enhance your net worth analysis and improve your after-tax financial position. This means that in addition to supporting a future beneficiary, you may be able to receive an immediate income tax benefit, improve the long-term sustainability of your retirement income, and bring more predictability to your net worth plan. There are three types of remainder trusts:
Unitrust: A unitrust the income the donor receives is based on a percentage of the current fair market valuation of a trust asset. Each year, as the asset is valued, the income is adjusted based on the new valuation, which can be attractive if you expect the underlying investments to grow over time and want your income and charitable giving strategy to keep pace with inflation and portfolio performance..
Annuity Trust: Instead of a percentage of the asset value, the donor is paid a fixed amount annually. This predictable stream of payments can make it easier to budget for retirement expenses, plan for healthcare or long-term care needs, and integrate the trust’s income into your broader net worth and cash flow plan.
Pooled Income Fund: Donors can pool their donated assets in a fund that is operated by a charitable organization. The donors then receive a proportionate share of income from the fund that is paid throughout their lifetime. Payments can vary each year based on the valuation of the underlying assets in the fund.
Charitable Lead Trust
Also known as an Income Trust this vehicle transfers the income rights to the charitable organization, allowing you to provide immediate support to a cause while preserving the underlying asset for future transfer back to you, your family, or other beneficiaries as part of your long-term net worth strategy. Generally, the income rights are assigned for a specified period of time after which the remainder passes to the donor.
Charitable planning involves tax issues that should be discussed with a qualified tax professional.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
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