Hartford Business Journal

26 HARTFORDBUSINESS.COM | OCTOBER 4, 2021 As a Key Private Bank Wealth Advisor, John Jezowski is responsible for the coordination of financial planning, investment management, tailored lending, fiduciary services, and private banking for clients throughout Connecticut and Western Massachusetts. Key Private Bank is a leading provider of wealth management solutions and advice for high-net worth and ultra-high-net-worth clients, including wealth advisory, investment management, trust administration, customized credit, family office and private banking services. Advisors leverage partnerships with Key's commercial banking and capital markets teams to build wealth plans tailored to meet each client's specific need. S P O N S O R E D C O N T E N T Estate Planning Strategies in a Low-Rate Environment By John Jezowski, Wealth Advisor, Key Private Bank If we've learned anything from the COVID-19 pandemic, it's the value of being prepared for the unpredictable. This is particularly true when it comes to protecting the financial well-being of our families and the economic future of our businesses. The current low-interest rates and market valuations make this an ideal time for wealth transfer planning. Review Existing Estate Planning Documents Now is a good time to create or review your will and other estate planning documents to ensure they are current and accurately reflect your goals and objectives. In addition to a will and/or a revocable trust, which provides for the disposition of your assets upon your death, everyone should have a power of attorney, health care proxy, and living will, which benefit you in the event of incapacity or medical emergency. Most importantly, organize and share your financial and estate planning documents with a family member so your plans are known and readily accessible. Planning Strategies When Interest Rates are Low With interest rates currently at or Any opinions, projections, or recommendations contained herein are subject to change without notice and are not intended as individual investment advice. This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice. Investment products are: NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY. © 2021 KeyCorp. Member FDIC. 190104-521319-1138617372 near historic lows, businesses and individuals can access nearly interest-free loans to invest, spend or refinance a mortgage. Low rates also enhance the benefits of some estate planning strategies. For individuals with taxable estates and those who expect to have a taxable estate in the future, this is an ideal time to make gifts to reduce or eliminate estate tax, in light of the currently high federal gift and estate tax exemption ($11.58 million or $23.16 million for a married couple). Even if your estate is less than the federal exemption amount, you still might be subject to a state estate tax if you live in Connecticut or another state that levies separate estate and/or inheritance taxes. In Connecticut, the 2021 tax exemption is $7.1 million. It will increase next year and is scheduled to match the federally exempt amount in 2023. Consider these strategies in today's low-interest rate environment: √ Maximize annual exclusion gifts of $15,000 to children, grandchildren, and their spouses, leveraging the lower values of certain assets. √ Tax-exempt gifts to some specially designed trusts can reduce estate tax while still permitting access to the assets if needed, including spousal lifetime access trusts (SLATs) and domestic asset protection trusts (DAPTs). √ Current conditions generally favor estate-freeze strategies like grantor retained annuity trusts (GRATs), which provide an annuity to the grantor for a period of time; charitable lead annuity trusts (CLATs) to benefit charity and provide for beneficiaries in the future, with the added benefit of a charitable deduction; and installment sales, all of which allow you to give away the upside of assets tax-free. √ A low-interest loan to a family member can provide liquidity to avoid selling when the market is down. √ Implement a Roth conversion strategy that allows you to shift more tax-free wealth at a lower income tax cost, particularly in view of the possibility that income tax rates may increase. In light of the new distribution regime established by the Secure Act (requiring a 10-year payout from most retirement plans for most beneficiaries), converting traditional IRA assets to Roth IRAs and prepaying the tax liability can ensure that more retirement dollars will go to beneficiaries. Your Key Private Bank advisory team of experienced specialists can help determine if one or more of these wealth transfer tools can benefit you and your heirs. For more information, contact Key Private Bank Wealth Advisor John Jezowski at 860-293-4142 or John_M_Jezowski@KeyBank.com Our experts listen first, then tailor an estate plan built to secure your family's future. Let's start a conversation. Visit key.com/getthere Expertise is half of our story. Knowing your story is the other. Key Private Bank is part of KeyBank National Association. Bank and trust products from KeyBank National Association. Investment products are: NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY Key.com is a federally registered service mark of KeyCorp. ©2021 KeyCorp. KeyBank is Member FDIC. 210916-1249551

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