Emerge from this Tax Season with Happier Clients and Potentially More AUM
As a financial advisor who also has a tax practice, it would not be surprising if your clients asked what they are receiving for the fee they are paying for tax preparation. When you provide a service that requires the client to pay you, it is reasonable to expect they will ask you the value they receive in addition to helping them legally minimize their 2021 tax bill.
For most financial advisors, their value lies in the relationship that develops when the person digging deep into the client’s tax situation also keeps an eye on the entire financial picture. This is how you become a trusted advisor to your clients.
This tax season, here are ways Dunham and Dunham Trust Company can help you deepen your relationships and the value you bring as the advisor viewing their complete financial picture.
The Dunham Trust Company IRA Trust Trilogy®
The DTC IRA Trust Trilogy has been one of the most successful planning tools from Dunham Trust Company. It has resulted in an increase in AUM for tax-focused financial advisors. The three IRA trusts in the trilogy allow for a far deeper tax and beneficiary planning, providing a notable benefit for the tax client. Click here for more information on the Dunham Trust Company IRA Trust Trilogy®.
The benefits of these trusts are:
DTC IRA Charitable Trust®
- Eliminates the SECURE Act tax for non-eligible beneficiaries
- Provides more lifetime income for beneficiaries when compared to paying the tax
- Allows the beneficiary to receive up to 90% of the inherited IRA value during their lifetime
- Provides a tax deduction for the estate
- Delivers a charitable gift for a donor-advised fund or a charity
DTC IRA Replacement Trust®
This Irrevocable Life Insurance Trust replaces some or all of the IRA assets lost to a charity or taxes.
DTC IRA Special Situations Trust®
Provides guardrails for beneficiaries who need them due to:
- Substance abuse issues
- Gambling issues
- Irresponsible with money
- Special needs
- Vulnerability to fraud
Selling Stocks or Any Asset with Large Gains
The current bull market combined with the fear of a possible market downturn has revived interest in the Charitable Remainder Trust. The benefits of having the trust sell the stock include:
- Eliminates the capital gains tax at the point of sale
- Creates a tax deduction that can be used towards other income
- Provides lifetime income for your client and their spouse
- Allows your client to receive up to 90% of the stock value back during their lifetime
- Provides a donation to a donor-advised fund or a charity
- You can use the tax savings to consider a life insurance policy to replace the assets going to a charity or donor-advised fund
Roth Conversion and Bunching Through a Donor-Advised Fund
If you recommend a Roth conversion, consider the benefits of using a “Super Bunching” strategy through a donor-advised fund.
Improve Breadth of Services for Clients and Referrals through a Services Menu
Often, a client views you through the narrow lens of what you currently do for them. They view you as their tax professional if you are preparing their taxes despite all the other services you provide. A Menu of Services can open their view of what you offer and can make you more referable as clients expand their thinking of ways you can help them and the people they know. Call (858) 964–0500 or contact us online for a customized Menu of Services made especially for your practice.
Organizing Important Documents
Another critical service you can offer your clients is organizing all of their important documents so they and their families know where to find them. This is especially important when your client passes way because it provides exceptional service to the next generation.
Call (858) 964–0500 or contact us online for more information about Dunham’s Important Document Organization Program.
There is More Dunham Can Do for You!
Call your Regional Marketing Associate to discuss white papers and videos on these topics that you can brand with your logo to ensure your clients know the various ways you can help them!
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Risk Associated with all three trusts in the DTC IRA Trust Trilogy®:
Current tax environments are subject to change at any time and no one can predict with certainty what Congress or the IRS may do.
Dunham Trust Company does not guarantee the investments in the DTC IRA Trust Trilogy® as investments are subject to risk and market fluctuation, including possible loss of principal. Dunham Trust Company does not guarantee that your investment objectives will be achieved.
Fees Associated with all three trusts in the DTC IRA Trust Trilogy®:
To maintain a DTC IRA Trust Trilogy® you may incur fees and expenses. Generally, there are no administrative fees associated with the DTC IRA Special Situations Trust® and DTC IRA Charitable Trust® until the IRA owner passes, at which point the trust administration fee schedule published at the time will apply.
However, the fees related to the DTC IRA Replacement Trust® will be subject to the published fee schedule at the time the trust is established.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc. Trust services offered through Dunham Trust Company, an affiliated Nevada Trust Company.Subscribe to the Dunham Blog