Robert W. Breske




4447 Edgewater Dr., Orlando, FL 32804


Phone:    407-521-4570

Fax:        407-521-4571

Toll Free: 877-902-1920




July/August 2022

Legacy Planning: Keep Taxes in Mind

Legacy Planning Keep Taxes in Mind

If you're nearing retirement, you may have two major planning concerns. One is determining how much income you'll need and where it will come from. The other is creating a tax-efficient plan for passing along your assets. If one of your goals is to leave a financial legacy to your family or your favorite charity, you'll want to design a strategy that takes taxes into account.

Expenses and Income
How much money will you need to live on in retirement? In addition to your current living expenses, you may need funds for unanticipated expenses, such medical or long-term care costs. Social Security, pensions and annuities are stable sources of income that you can supplement with retirement plan withdrawals, the sale of investments, and savings.

Your Accounts
Confirming that your accounts are titled appropriately and beneficiary designations are up to date can help ensure that your assets will pass to your beneficiaries as you intend and receive favorable tax treatment. Review designations periodically, especially if your intentions or tax laws change.

Your Strategy
You may be tempted to preserve the assets in a traditional IRA or qualified retirement plan account for your heirs and withdraw funds for living expenses from taxable investment accounts to take advantage of lower capital gains rates. But that strategy could leave your heirs with a large tax bill. Why? Withdrawals from a traditional IRA or qualified retirement plan account are taxed at ordinary income tax rates. However, appreciated assets, such as stocks, generally receive a step up in basis at the owner’s death, so any appreciation since you acquired the investment won’t be taxable to your heirs. (This benefit may be limited in the future.)

A Work Around
Consider converting all or a portion of the money in a traditional IRA or qualified retirement account to a Roth IRA. Make sure you have other assets to pay income taxes on the conversion.

Being Charitable
Naming a charity as the beneficiary of a qualified retirement plan account or traditional IRA allows the organization to receive the assets tax free. Your estate may also receive an estate tax deduction for the donated assets.


Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Securities and investment advisory services offered through Royal Alliance Associates, Inc. member FINRA/SIPC. Royal Alliance Associates, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Royal Alliance Associates, Inc.
Breske & Breske, Inc. and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.