Stupid in Love: Intentional Estate Planning for Married Couples

Many advisors focus on the “Great Wealth Transfer”, estimated to be around $124 trillion through 20248, projected to shift assets from Baby Boomers to their heirs. However, of this amount, approximately $54 trillion is expected to first be passed through inter-spousal transfers to widows, of which more than 95% is expected to go to women. Advisors should prepare married couples for intentionally transferring wealth through titling of assets, making irrevocable lifetime gifts, and structuring inheritances at death through trusts and outright bequests. This session will review the federal estate and gift tax exemption under the Tax Cuts and Jobs Act of 2017 (including the effects of any potential sunset or revision thereto), explore some of the various types of trusts for the benefit of a spouse, and discuss some common hypotheticals for planning for these married couples. With intentional and holistic planning, married couples can thoughtfully prepare, plan and protect for their future, especially upon the death of the first of them to die.

Learning Objectives:

1. Strategize how to title assets and make irrevocable gifts for the benefit of a spouse of a married couple
2. Differentiate among the types of trusts for the benefit of a spouse, including Spousal Lifetime Access Trust, Spousal Lifetime Access Nongrantor Trusts, Qualified Terminable Interest Property Trust, General Power of Appointment Trust, and more
3. Examine common hypothetical scenarios for planning during a couple’s lifetime and upon the death of the first of them to die