Year-End Planning Suggestions

It’s nearing the end of the year and with the recent market drops and volatility getting your clients worried, we have some year-end planning suggestions that can be win-win’s.

We can help with innovative planning strategies that can protect your clients’ assets, while still allowing them access to these assets.  This can also better prepare them for their planning needs in 2019.


  • When asset values drop, suggest that your clients consider making gifts of these “beat up” assets to their children, grandchildren or a trust for their benefit at this reduced value.  When those assets rebound, the growth will then be in the hands of those who received the gift and that growth will be gift and estate tax-free.
  • Does your client not want to give the asset away because there may be a need for it later?  He or she may be able to make a gift of these “undervalued” assets to a specialized family trust that could provide income and/or principal to the husband or wife during their lifetime but be removed from their estates for estate tax purposes.
  • Also, gifts of these assets can be given upstream from an adult child to a parent to help support them. The parent could will these assets back and when they do the assets will get a stepped-up basis if certain timelines are met.
  • Transfers to GRAT’s and other estate planning vehicles can be incredibly powerful when assets that are currently undervalued are used.  All future appreciation occurs off the client’s balance sheet, can be asset protected and ultimately delivered to future generations gift tax-free.

Contact us for help getting started with any of these strategies, so that we can help you ease your client’s mind and help them continue along the path to achieving their financial goals, even while the market is down.

Mercury Financial Group does not provide tax or legal advice. All clients are urged to seek counsel on such matters.