Chances are, you’ve already noticed that a major transfer of wealth is happening as your Baby Boomer clients establish financial and estate plans to pass their wealth to their Gen X and Millennial children.

The dollars involved are eye-popping. Most attorneys, financial advisors, and CPAs have seen the Cerulli study's estimate that $124 trillion in wealth in the U.S. will transfer through 2048. The research estimates that most of this wealth–$105 trillion–will pass directly to children, grandchildren, and other heirs. Notably, the study estimates that $18 trillion will flow to philanthropy.

As the transfer of wealth gains momentum, advisors have a major opportunity to position themselves as trusted experts who can help clients structure efficient lifetime and estate gifts to heirs and help ensure that clients' charitable wishes are achieved. Advisors, rest assured that Tidewater Jewish Foundation (TJF) is here to help incorporate philanthropy into clients’ financial and estate plans.  

Here’s why this is so important:

• There’s a knowledge gap. Clients may not be aware of the options and benefits of charitable planning. Even many of your affluent clients may still be writing checks to their favorite charities, not realizing that gifts of appreciated stock, for example, can be more tax-efficient and that tools at TJF, such as donor-advised funds, can be incredibly useful.

• Next-level strategies are key. Your ultra-wealthy clients will likely need to implement sophisticated strategies for transferring assets smoothly and tax-efficiently. Clients want to maximize the results of their charitable gifts while also protecting their families' interests. Leaning on TJF to help structure gifts of complex assets, such as closely-held business interests, can significantly reduce a client's tax bill and achieve meaningful community impact.

• Legacy planning starts now. It's tempting to put off addressing a client's wishes to support favorite charities in an estate plan. "We'll look at that in a few years" is a common but less-than-ideal approach. That's because charitable bequests are best addressed as part of a comprehensive estate and financial plan. For example, naming a fund at TJF as the beneficiary of a client's IRA is a highly tax-efficient way to accomplish charitable wishes.

The Tidewater Jewish Foundation team is here to augment your expertise in charitable giving strategies. Not only will you be better able to meet clients’ needs, but you’ll also strengthen relationships and improve client retention. Please reach out to learn more about how TJF can help your clients make a lasting impact on their wealth while achieving their financial goals.

For more information, contact Naomi Limor Sedek, President & CEO, at (757) 965-6109 or nsedek@tjfva.org, or Randy Parrish, Vice President & CFO, at (757) 965-6104 or rparrish@tjfva.org

The Tidewater Jewish Foundation (TJF) team is a resource and sounding board as you serve your philanthropic clients. We understand the charitable side of the equation and are happy to serve as a secondary source as you manage the primary relationship with your clients. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.