Case Study:

WEALTH ADVISORY

The Arnolds are in their mid-80s and lifelong residents of San Antonio.  Long-time deposit customers of Broadway Bank, the Arnolds became concerned about their estate plan after seeing a recent article in the Bank’s newsletter. Their Wills had been drawn many years ago and were quite simple – leaving everything to the surviving spouse, and ultimately divided equally among their adult children.  Additionally, each had named the spouse as executor and their two out-of-town children as alternate Co-Executors.

When we met with the Arnolds to review their documents and discuss their situation, several concerns surfaced:

Desire to never burden their children
Advancing age and declining health
Desire to remain in their own home rather than going to a retirement community
Need for local assistance/service
Taxable estate and no tax planning
Desire to leave children an inheritance
Desire to provide for their alma maters, as well as some favorite charities

In working with the Arnolds, we were able to assist them in coming up with a plan that addressed their concerns. Their documents now name Broadway as alternate Executor after the spouse and as Trustee for Trusts established under their Wills. The Wills now provide for immediate distribution to their children of assets up to the federal estate tax exemption with the balance going into a Charitable Remainder Trust (CRT) for benefit of their alma maters and two favored charities.  The CRT will reduce their taxes by providing a charitable deduction; the children will continue to get an income stream for their lifetimes; and ultimately whatever remains will go to the universities and charities.