Proactive Planning:
How Your Peers Are Advising
Their Individual Clients in 2014
Presented by:
Lyle Benson, CPA/PFS (Moderator)
Susan Bruno, CPA/PFS
Lisa Featherngill, CPA/PFS
Robert Keebler, CPA, MST, AEP
Larry McKoy, CPA/PFS
Introduction
About the PFP Section & PFS Credential
• The PFP Section is the premier provider of information,
tools, advocacy and guidance for CPAs who specialize in
providing estate, tax, retirement, risk management and/or
investment planning advice to individuals, families and
business owners. (learn more at aicpa.org/PFP)
• The Personal Financial Specialist (PFS) program allows
CPAs to gain and demonstrate competence and
confidence in providing estate, tax, retirement, risk
management and/or investment planning advice to
individuals, families and business owners through
experience, education, examination, and a resulting
credential. (learn more at aicpa.org/PFS)
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Introductions
Lyle Benson,
CPA/PFS
Susan Bruno, Lisa Featherngill, Robert Keebler, Larry McKoy,
CPA/PFS
CPA/PFS
CPA, MST, AEP CPA/PFS
(Moderator)
L.K. Benson
& Company
Beacon
Wealth
Consulting
American Institute of CPAs®
Abbot Downing
Keebler &
Associates
Dixon, Hughes,
Goodman
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Agenda
Lessons learned from tax season
The true impact of ATRA on financial plans
Managing tax brackets and multi-year planning
Integrating multiple generations in the financial
planning process
A shift back to "true" estate planning
Insurance planning considerations
Encouraging clients to take action
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Lessons learned from
tax season
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The true impact of ATRA
on financial plans
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Impact of ATRA on plans
Increase in tax rates and multiple levels of tax
require more planning for tax-efficient investing
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Location of assets
Tax-free or tax-deferred vehicles
Consider the impact of state income taxes
Consider the tax efficiency of the investment
Impact on asset allocation
Investment assumptions need to be reviewed,
particularly with lower interest rates
Integrate income tax and wealth transfer planning
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Managing tax brackets
and multi-year planning
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Managing tax brackets and multi-year
planning
Develop a 10-15 year projections for income tax
Tax alpha strategies
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Tax asset classes
Statutory tax shelters
Tax efficient investing
Asset location
DrawDown strategies
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Integrating multiple
generations in the
financial planning process
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Integrating multiple generations in the
financial planning process
Use flowcharts to understand impact of estate plans
Plan is not complete until you have:
• Checked beneficiary designations
• Checked titling
• (New!) Communicated to the next generation
Long-term care concerns and planning
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A shift back to "true"
estate planning
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A shift back to "true" estate planning
Most clients will not be subject to estate tax, but we
need to review their estate plans
• Ensure assets pass as intended
• Analyze and reflect on work done in past couple of years
• Name Guardians, Trustees and Personal Reps
Increased focus on communication and family
meetings
• Focus on family values and priorities
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A shift back to "true" estate planning
For couples who are or could be subject to the
estate tax, if assets are…
< individual exclusion amount: Evaluate the need to make the
portability election to shelter additional asset growth.
< combined exclusion amount: Consider funding a bypass trust
to shelter additional asset growth.
> combined exclusion amount: Funding a trust will likely be
prudent. Consider:
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Annual Exclusion & Lifetime Gifting
Family Limited Partnerships
Grantor Retained Annuity Trusts
Intentionally Defective Grantor Trusts
Installment Sales to Grantor Trusts
Dynasty Trusts
Generation Skipping Transfer Tax Planning
Qualified Personal Residence Trusts
Split Interest Trusts
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Insurance planning
considerations
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Insurance planning considerations
Fiduciary responsibility for life insurance trusts
Term insurance: Pros and cons
Long term care (LTC) insurance: Dramatic market
changes especially important to the female client
Life settlements: All bad?
The inheritance “max” and “floor”: An easy
conversation to have with clients
Life insurance: High tax rates make life insurance
popular
• Avoid net investment income tax (NIIT): Indexed universal life
• Advantages of private placement life insurance (PPLI)
 PPLI = Private placement variable universal life (PPVUL)
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Encouraging clients to
take action
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Encouraging clients to take action
Face-to-face planning meetings
• Target meeting with top 50% of clients before August 15th
Standard agenda of topics/goals
• Keep at least half of the time for topics on the client’s mind but
not your agenda
Create matrix of top topics vs. top 50% client list
Develop deliverables
Determine clients’ “needs and wants” and balance
against financial resources
Develop action list from the meeting
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Questions
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Resources for PFP/PFS Members
Planning After ATRA and the Net Investment Income Tax Toolkit
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aicpa.org/pfp/proactiveplanning
Complimentary PFP Section member/PFS credential holder benefit
Includes Bronze Edition of Tax Evaluator, infographic on tax brackets, planning
ideas to use in client meetings, client communication templates,
webcast/podcast archives, and more!
More resources on estate, tax, retirement, insurance, and investments
(aicpa.org/pfp/resources)
Forefield Advisor (aicpa.org/pfp/forefield)
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Client education and communication tool
Written by CPAs, attorneys and other subject matter experts.
More than 3,000 resources covering personal financial planning, including
estate, tax, retirement, investment and risk management planning.
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Upcoming PFP Section Events
Webcasts: free for PFP/PFS members without optional discounted CPE
May 20, 2014,
1-2:45p.m. ET
Prudent Diversification Practices for Investment Fiduciaries
May 28, 2014
3-5p.m. ET
Advanced PFP Series: Venn Diagrams: Meet Me at the
Intersection of Estate and Income Tax*
June 9, 2014
1-2:45p.m. ET
CPA/PFS Perspectives: The Seamless Integration of CPA and RIA
Firms
June 10, 2014
1-2:45p.m. ET
Retirement Planning and Issues Related to Aging
June 11, 2014
1-2:45p.m. ET
The Mathematics of Portability
AICPA Advanced Personal Financial Planning Conference (cpa2biz.com/PFP) –
January 19-21, 2015 in Las Vegas
For the full calendar of upcoming PFP Section events, visit aicpa.org/PFP and
click on CPE & Events.
To access the archives, visit aicpa.org/pfp/webseminars.
*Advanced content available for fee only; discount for PFP/PFS members
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Statement on Standards in PFP Services
SSPFPS has been issued and becomes effective on July 1, 2014.
Learn more about the new standard and the resources available to
assist you with compliance at the sessions described below.
Save the dates for in-depth webcasts* on SSPFPS:
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Do the New PFP Standards Apply to You? (archived)
Understanding the Requirements of SSPFPS (archived)
Practical Applications: Using the Compliance Toolkit (archived)
Leveraging SSPFPS to Elevate Your Practice (Rebroadcast May 21, 1-2p.m. ET)
Upcoming conferences where SSPFPS is on the agenda
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AICPA Practitioners Symposium and Tech+ Conference June 9-11, 2014 at the Aria, Las
Vegas
AICPA Advanced Estate Planning Conference** July 21-23, 2014 at Swisshotel, Chicago
AICPA Sophisticated Tax Planning for Your Wealthy Clients** November 2014
(Date/Location TBD)
Various CPA associations and state societies
*Archives for PFP/PFS members will be available at aicpa.org/pfp/webseminars.
**PFP/PFS and Tax Section members receive additional discounts on the early-bird & AICPA member price.
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CPA/PFS News and Events
PFS Referral Program
• Receive 100% credit to apply toward future CPA/PFS dues by
referring a CPA to become a PFS or sit for the PFS exam
PFS Exam
• Register now for Summer window
• Discounts, sponsorships and volume pricing available
Education Opportunities
• Live 2 ½ day review class
• In-depth courses in estate, retirement, tax, investments,
insurance, and PFP process
• Self-study PFS exam review course
Learn more at aicpa.org/pfp/pfs
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