Alterra Advisors

Living to See a Lasting Family Legacy

Philanthropy aside, McRae’s also wanted to be sure that their kids and grandkids had something John and Susie did not have as children –  financial security.

Because their charitable giving would reduce the wealth transfer to their children’s inheritance by almost $10 million, we also implemented a Wealth Replacement Trust strategy. This allowed us to start transferring assets outside of the estate for the next generation while John and Susie still maintained control over the funds while the kids were young.

The net result of these combined tax and trust strategies will increase the McRae’s lifelong commitment to their philanthropic activities by more than $11 million. That means they will get to see the impact of their giving during their lifetime.

Better still, by decreasing the estate transfer taxes by what could be $11 million at the time of their deaths, this plan will also increase the legacy left to their children by over $4 million at the same time, without reducing the money given to charity.