Alterra Advisors

Strategies for Continued Tax Reduction

We utilized a Charitable Remainder Trust (CRUT) and combined this with a Wealth Replacement Trust designed as a legacy vehicle for their kids and grandkids. This action transformed an investment difficulty and tax issue into a money-saving opportunity. The CRUT will create an annual revenue stream of approximately $50k to be directed into the Wealth Replacement Trust, fully removing this income from their taxable estate while building their legacy goals.

Over the first three years we exhausted the Walton’s charitable tax deduction by completing several Roth IRA conversions which created an even larger long-term tax reduction. This will also alleviate some of the impact of forced taxable distributions on their IRAs when they reach age 70, which will mean continued tax savings for the remainder of their lives.