Tax planning for individuals and families is an ongoing process intended to reduce the overall taxes owed by the family and usually involves experiments with different tax-planning strategies. Wealthy individuals often seek professional help to plan for their family's future and manage their wealth.

Assume that you are hired by Mr. Rich, an 80-year-old wealthy widower who is considering making several changes to his asset portfolio, including giving gifts to his three adult children and six grandchildren. Mr. Rich's asset portfolio consists of corporate stocks, municipal and corporate bonds, real estate, and a few business interests.

Consider the options available to help minimize Mr. Rich's overall tax liability and discuss your proposed strategy(ies) for tax and financial planning. What factors do you need to consider as his financial planner? What options are available? What do you believe would be the most effective and why?

Answer rating: 100% (QA)

As Mr Richs financial planner there are several factors to consider in devising a tax and financial planning strategy to minimize his overall tax liab... View the full answer