Page 51 - MetalForming August 2013

your local lawyer (Lenny) do the estate plan. When it’s done, I’ll be happy to review it and give you a second opin- ion, at no charge if I can’t improve your plan by:
1) Covering issues you and Mary should have but Lenny missed, and
2) Save you taxes (and/or create tax- free wealth) because Lenny did not know how to implement the appro- priate strategies.”
Then Joe asked, “Irv, how can you afford such an offer?” My response, based on my 50-plus years of experi- ence (about 19 out of 20 times): My second opinion simply reincarnates my original agenda to implement the issues and strategies the local lawyer did not do. In real-life practice, good odds for Joe and me too.
Why do my plans touch more bases and save more taxes than the plans created by the Lennys of the world? In a few words:
The network brings you a team of estate-planning specialists. I personally do the planning (both your lifetime plan and your estate plan). A lawyer (network member) specializing in estate-planning documentation does the endless amount of paperwork and documents.
Insurance plays a part in most estate plans. Our insurance-network con- sultant analyzes your existing insur- ance and 70 percent of the time finds a way to significantly increase your death benefit without any additional premi- um cost.
Other experts are brought in as needed, including business-valuation specialists, experts in foreign taxes and laws, and captive insurance company experts.
And finally, back to Joe and Mary. I reviewed Lenny’s plan. Sure enough, it fell into the 19 out of 20 category. Tech- nically, the plan was correct: a stan- dard A/B trust with a pourover will. It’s what Lenny did not do that screamed for attention.
Some of the lifetime plan issues we implemented were (a) reduce payroll taxes; (b) deduct Joe’s and Sam’s med- ical expenses; (c) created a captive
insurance company; (d) made sure none of the family assets could go to an ex-spouse if any of the kids got divorced... estimated annual tax sav- ings between $80,000 and $100,000.
Some of the estate planning strate- gies we implemented were: family lim- ited partnership for Joe’s investments; transferred Success Co. to Sam, tax- free, using an intentionally defective trust, while Joe kept control; used a
series of asset protection strategies for Success Co. and Joe’s assets; used funds in Joe’s 401(k) and IRA to create $3.5 million of the tax-free life insurance, instead of the funds being double taxed at death—estimated tax savings of about $2.2 million.
In the end, even Mary was comfort- able. Lenny stayed on as the family lawyer and became a professional friend. MF
Blackman on Taxes

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