Victoria (Vicky), age 74, and her late husband Henry were married for 51 years. Henry passed away a couple of months ago. Henry always handled the family’s financial planning and investment management. He left a note recommending that Vicky seek out the services of Schiavi + Dattani, should he become incapacitated or die. Vicky called the office and set up an appointment for her and her daughter to discuss how Schiavi + Dattani could help her manage her finances.
Reason for seeking financial advice: The passing of Vicky’s husband, who handled the family’s investment and tax planning.
Examples of what Vicky can expect by engaging Schiavi + Dattani:
· An experienced, calm, and patient approach to dealing with Vicky’s needs during a time of significant stress and grief.
· An initial review of all significant financial matters to see if anything needs to be addressed in a timely manner. This may include a review of Henry’s estate and any post-death planning opportunities with the family estate attorney. This review will be followed by the preparation of a more thorough financial plan.
· A plan to handle the payment of current and future bills.
· The coordination of any planning recommendations with any adult children, if Vicky would be more comfortable with their involvement.
· A plan to simplify investment management, including the consolidation of retirement accounts.
· Specific recommendations related to the tax efficient management of all financial assets, including allocation, and rebalancing decisions.
· Assistance with transferring assets into any new trusts that need to be created as a result of Henry’s estate plan.
· A plan to make sure that trust income is transferred on a monthly basis into Vicky’s trust or personal accounts, if that is what the trust terms direct.
· A projection of income tax liability and recommendations related to paying estimated taxes or using withholdings through Required Minimum Distributions.
· A discussion about rolling over Henry’s IRAs into Vicky’s IRAs. Would the use of disclaimers be beneficial?
· A discussion to immediately diversify out of Henry’s large investment holdings in his previous employer’s stock. This stock received a step up in tax basis upon Henry’s death, and can now be sold at no tax cost.
· Guidance on how much financial support Vicky can provide to her children and grandchildren as those needs arise. Vicky can use Schiavi + Dattani as a screen for requests by family members to make sure that any gifting will not jeopardize Vicky’s financial well being.