Dear Reader,
You don’t need a mansion or millions to have an estate plan that matters.
In fact, that’s part of the problem:
Too many families assume estate planning is for someone else…
That just a will is enough…
Or that creating a trust is done when you walk out of the office…
But if you have a brokerage account, a retirement plan, a house, kids…
Guess what? You have an estate.
And what happens to it can get messy – fast.
Just ask Michael Parise, a tax attorney and wealth manager who focuses on just such issues.
He’s seen a lot of messes. And helped clean up quite a few, too.
That’s why we’re offering this new WorthNet masterclass for free:
How to Keep the IRS from Becoming Your Biggest Heir
Click to watch it free →
It’s a deep dive with Michael, whose financial planning and investment management firm has spent more than 25 years helping families with their estate planning needs.
Let me show you what I mean...
Could Your IRA Face a Giant Tax Penalty?
In 2019, a new tax law passed largely under the radar of the millions of investors who hold IRAs, 401(k)s and similar qualified retirement accounts.
It speeds up the rate at which non-spousal heirs inheriting those accounts must take distributions (withdrawals), in some cases...
Potentially forcing them into higher tax brackets, reducing the time they could have grown tax-deferred, and even risking double taxation for some unlucky investors.
Now, imagine for a second, you’ve built a nest egg for retirement. And you know the nest egg is big enough that you and your spouse are likely to leave some to the next generation – say, a child, grandchild, niece, nephew, or surviving sibling.
Let’s say you have $1.5M left in a 401(k) or traditional IRA that you haven’t drawn down...
Your heir, except in rare cases, will now be forced to empty that IRA within 10 years to avoid serious penalties... causing an “income rush” that might push the taxes on that inheritance way up versus earlier treatment.
For example, if they took it all in a lump sum, that would push some of the money into the (currently highest) 37% federal tax bracket – a mistake that could cost as much as $100,000 in excess taxes.
Worse still, if you are (un?) lucky enough to be subject to the estate tax... and you haven’t properly assigned the beneficiary of the account to a trust (a common mistake, even for those who have a trust, says Michael)... those assets could be double taxed.
Add in potential state-level estate or inheritance taxes, which can run over 10% in some states, and as Michael lays out in the video: that account could be facing an effective tax rate ranging from 30%, in many cases, all the way up to 70% in extreme ones.
That could mean an unnecessary tax bill of anywhere from $100,000 to over $1,000,000 out of our $1.5M IRA, depending on your situation.
And that’s not even counting the lost future earnings that might have been earned had the account been left to “stretch” over an inheritor’s lifetime...
What Can You Do About It?
Thankfully, proper planning can potentially reduce the tax sting significantly.
In the masterclass, Michael walks through real steps families might consider to help avoid similar problems. They range from avoiding the simple *but all too common* mistakes to pre-planned timing strategies and the use of different trusts and account types, like:
| • | Identifying where the new rules affect an IRA’s beneficiaries |
| • | Double-checking trusts are properly 'funded' and beneficiary designations don't cause unintended consequences |
| • | Timing distributions in your lifetime, and via trust thereafter, to minimize taxation |
| • | Structuring life insurance policies to offset the tax impact |
| • | Moving assets into more tax-efficient vehicles prior to inheritance |
And this is just one of the many scenarios Michael walks through.
He also reveals:
| • | How a simple oversight could've triggered probate in nine states |
| • | The most common "invisible mistake" he sees that can unravel estate plans |
| • | Why families who think they’re covered – often aren’t |
| • | And much, much more |
Watch the full masterclass here.
This is an eye-opening session with a professional with decades of real-world experience...
We hope you find it chock-full of helpful insights.
See you inside,
The WorthNet Team
P.S. This isn’t about theory. It’s real talk on what goes wrong – shared by someone who works on these kinds of problems day in and day out. In fact, it’s a family business with a team that’s been at this for over 40 years, with clients ranging from grandparents aiming to gift a few hundred thousand dollars tax-efficiently to their grandkids... to family offices managing over $100M in assets. Watch it now and walk away smarter.
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Copper Beech Disclosures: Securities offered through Osaic Wealth, Inc., member FINRA/SIPC. Investment advisory services offered through Copper Beech Financial Group, LLC, an SEC-registered investment adviser. Additional advisory services may be offered through Copper Beech Financial Group. Osaic Wealth is separately owned, and other entities and/or marketing names, products, or services referenced here are independent of Osaic Wealth. Copper Beech is not affiliated with Osaic Wealth, Inc. Neither Osaic Wealth, Inc., nor its representatives provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. 
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