Financial Expert Offering Education on a Sensitive Subject

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New “Leave Wisely – Inherit Wisely” workshop advises heirs to take part in estate planning. From On Three Marketing

"New “Leave Wisely – Inherit Wisely” workshop advises heirs to take part in estate planning," shares Eric Converse with On Three Marketing.

Roger Kruse, founder of FFP Wealth Management ( ), has been a financial advisor specializing in estate planning for over 20 years. In recent years his firm has taken more and more calls from upset families who were shocked by large tax bills due on money that they inherited.

“In this business, it’s not unusual that the first contact with a potential client is when they are in some sort of financial distress, especially in cases where someone has passed away and families are trying to untangle the estate plan” says Kruse. “April comes around and they learn that the inheritance they received cost them dearly in taxes that they could have avoided with planning. Sad thing is, it’s all preventable”.

Kruse states, “The 1970s introduced ERISA and IRA accounts while the 1980s brought the 401(k). Tremendous wealth has been accumulated in plans that are now transferring due to death. Traditional estate planning does not deal with the strategies heirs can implement to reduce the INCOME TAX consequences of inherited retirement accounts.”

Families have been coached by advisors to avoid estate taxes and probate since Congress implemented estate taxes in 1916. Little or no planning is done for families who will transfer an estate below the threshold of a taxable estate which now has reached $5,000,000 per citizen. Smaller estates may avoid probate and estate tax while paying excessive taxes on inherited IRA accounts, employer plans such as the 401(k), annuity contracts and savings bonds are transferred as ordinary income and subject to income tax. Kruse goes on to state “If the heir understands their financial situation and their options they can significantly lower the tax rate due on the inherited money, sometimes down to 0%. The problem arises when the heir looks into their options after they have taken in money. Not much can be changed after that.”

Roger decided to offer a two day workshop that focused on the heir’s role in estate planning. Estate owners and their potential heirs are encouraged to attend together so that each understands what they must do to avoid unnecessary taxes.

The first two workshops were very well received and sold out quickly. The classes are split up into two days so that all of the information can be covered thoroughly. The attendees are encouraged to participate by asking questions about any of the topics covered.

“Nobody wants to talk to their loved ones about how their assets will be divided after they die. It’s awkward and people imagine hand-wringing morbid greed. The truth is that, by talking about it, the parent can maximize the value of their gift. It’s what both parties want,” says Kruse.

FFP Wealth Management ( ) is a NAPFA registered Fee Only Advisory firm managing over $60,000,000 and offers expertise in tax planning, financial and retirement planning and post retirement distribution planning.


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