Wealth Transfer - Sample Memorandum

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The Process
First, we meet with you and listen to your needs, aspirations, concerns and history. We gather as many documents as possible: copies of your wills, trusts, financial statements, tax returns, insurance policies, business agreements, pre- and post-nuptial agreements, divorce settlements, employer benefit handbooks and any other documents you have available. Then, we analyze these documents.

The Analysis
Our planning team reviews the documents you have provided and develop a detailed overview of your financial position, including any inconsistencies and omissions. We then develop a hypothetical probate illustration and tax estimates under the current estate tax laws and projected future liabilities.

Next, we look at your family’s financial needs and add these to our formula.

Finally, we look at your insurance policies, updating the information for each policy and factor in the ratings and financial stability of each insurance company.

All of this information is then summarized in a draft form. This draft document provides the basis for a meeting with you and your key financial advisors. At this meeting we actively seek input from you and your advisors. We note any changes and revisions and then develop a strategy to meet your needs and objectives.

The Strategy
Once your needs and objectives have been clearly identified and your financial situation has been documented and reviewed, we develop a customized plan to minimize estate and gift taxes while preserving and protecting your wealth. Our recommendations for implementing this strategy may include the use of gifts, asset transfers, generation skipping trusts or other planning techniques.

In some cases, additional life insurance or long-term care insurance may be indicated. As independent advisors, we have access to the top American insurance companies with the strongest ratings, greatest financial stability and finest products. We develop the best and most cost-efficient mix of your current insurance plans and additional products and contracts that supplement your current plans. As part of our regular cycle of reviews, we ensure this mixture of plans and contracts reflects the rapidly changing estate tax environment.

The Memorandum
Once the review and recommendation process has been completed, we prepare a concise, understandable summary of your situation in a Wealth Transfer Memorandum. This Memorandum is a living document and is reviewed on a regular basis by you, your other advisors and us.

Confidentiality
Your personal information is held in strictest confidence at Financial Designs Ltd. We respect the sensitive nature of the information you are sharing with us. We understand the responsibilities you have entrusted to us, and we live up to that trust.

Pursuant to IRS Circular 230, Financial Designs Ltd. notifies you as follows: The information contained in this document is not intended to and cannot be used by anyone to avoid IRS penalties.