Individual Consulting / / / / /

Estate Planning

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for"

Author Robert Kiyosaki

There are three possible beneficiaries of your wealth:

IRS

Your Family

Charity/Private Foundation

Our goal in working with our clients is to assure that the
highest percentage of your assets flow to your family and charitable pursuits

Who We Are / / / / /

Our Core Beliefs

We fundamentally believe in the preservation of private capital
We are hyper-focused on the net results to the ultimate beneficiaries
We are driven to maximize Internal Rates of Return on Wealth Transfer assets

Yes, we have almost five decades of experience working with high net worth clients in the estate planning arena. What could that mean for you and your family?

At Paradigm Gilbert, we have the unique ability to educate and illustrate
intelligent solutions involved in the wealth transfer process and model them in an easily understood and simplified manner

Estate Taxation

The Tax Cuts and Jobs Act increased the unified federal gift and estate tax exemption. The upcoming election will likely cause a review of huge federal budget deficits substantially enlarged due to Covid 19

In 2020, the estate tax exemption is $ 11.58 million for an individual and $23 million for a family. Any excess assets you or your revocable trust control is subject to a 40% estate tax. Taking action now is mission critical to maximize the value of your assets for those people and causes you care about

Modern History of the Estate Tax*

Year	Assets Exempt from Tax	Tax Rate on Excess
2000	$675,000	55%
2005	$1,500,000	48%
2009	$3,500,00	45%
2010	EVERYTHING/NO ‘STEP UP’	N/A
2015	$5,430,000	40%
2020	$11,580,000**	40%

*author Bill Bischoff May 27, 2020
**sunsets in 2026 and reverts to the 2017 exemption of $5.49 million and inflation adjusted for 2018-2025; excess assets taxed at 40%

Paying for Estate Taxes

Estate taxes are generally due within 6 months of the date of death
They must be paid in cash
Often there is insufficient liquidity in a taxable estate to pay that tax
Liquidating income producing assets such as real estate is not cost effective and sacrifices the future income flow and potential appreciation of the asset for future generations
Many of Paradigm Gilbert’s higher net worth clients prefer to keep those assets in place, allow them to grow but simultaneously provide instant liquidity thru life insurance in a most cost effective/affordable manner
Enter Paradigm Gilbert’s proprietary ParadigmPlan™

Wealth Preservation Plan

Many clients have accumulated substantial sums in pension/profit sharing, 401k plans and IRAs. For many, these funds will likely not be needed for retirement income purposes

We created the Wealth Preservation Plan or WPP™ so that the ultimate beneficiaries of these assets can receive up to 5x their current value after all applicable taxation

Our team at Paradigm Gilbert will show you and your advisors how the plan works and its dramatic impact for the ultimate beneficiaries of your tax qualified plans

Core vs. Legacy Capital

For our high net worth clients, it is mission critical to calculate the amount of capital or assets needed at an assumed retirement age to live the way they want to live for the rest of their lives, adjusted for inflation, their assumptions of longevity and rate of return on invested assets

Using our Roadmap™ quantitative planning tool, we can calculate what we describe as ‘the client’s number’ or ‘Core Capital’. This is the amount of money that must be set aside for a secure future based upon that client’s assumptions. Assets greater than that Core Capital amount are what we call Legacy Capital, likely not needed for retirement income purposes. The key from our perspective, is to have access to those funds if ever needed, but ‘lever up’ the Legacy Capital assets at death to provide more for those people and causes you care about. The team at Paradigm Gilbert will show you how