Experiencing a Major Life Change
Primary goal: Guidance on disclaiming assets and ongoing investment management
Mia lost her husband Edward suddenly and was thrust into making decisions about his estate which were interlaced with her current and future needs. Edward’s estate was approximately $5 million and together they had over $9 million in assets. She was unclear how her income would change with Edward’s death and, at age 76, unsure what she would need for her lifetime. Mia had the opportunity to disclaim some assets and wanted to understand how much she could afford. She came to HTG to understand her new financial picture, for guidance on what to disclaim, and for ongoing help in managing her portfolio assets.
- Mia wanted to understand if she could afford to disclaim any inherited assets.
- As a new widow, she knew she would have to update her estate plan and account beneficiaries and anticipate changes in income and taxes.
- Mia did not have experience with managing investments and wanted an advisor to invest her portfolio for her.
How We Helped
Mia’s HTG advisors projected her income now that she would be collecting only Social Security survivor benefits, and the subsequent increase in portfolio withdrawals to meet her current expenses. By illustrating the projected asset values at Mia’s death, both with and without disclaiming assets, Mia understood that she could afford to disclaim up to $4 million, money her four children could use now for their growing family needs. HTG facilitated the retitling of the assets, movement of assets into new accounts and updating beneficiaries. HTG consulted with Mia and her attorney on a new will and estate plan, as well as her accountant to determine appropriate estimated tax payments. As Mia thinks back on all that transpired over the past year, she can't imagine how she would have managed without her HTG advisors.
- Projected new income and expenses.
- Articulated pros and cons and demonstrated impact of disclaiming assets.
- Facilitated the retitling of assets, movement of assets into new accounts, and updating beneficiaries.
- Worked with attorney to update Mia’s estate plan, including powers of attorney.
- Reviewed changes in tax filing status and consulted with accountant to determine if estimated taxes needed to be adjusted.
- Repositioned the investment portfolio to fit Mia’s needs and assumed ongoing management.