Estate planning strategies and tools for financial advisors

Financial advisors and tax professionals likely work with many wealthy clients, though none of those customers is likely to have an estate the size of Warren Buffett’s. Nevertheless, his strategies may carry applicable lessons for their estate planning.

In June, the longtime Berkshire Hathaway CEO revered as the “oracle of Omaha” announced that he will donate $6 billion in the company’s stock to five foundations — which means that Buffett has now allotted 99.5% of his giant estate to philanthropic organizations. Beyond those impressive figures, Buffett’s typically savvy move offers a helpful reminder to tax planners and their clients on why it’s beneficial to donate stock rather than liquidating the holdings prior to contributing cash to charity, said Miklos Ringbauer, founder of Los Angeles-based MiklosCPA.

“If he sells the shares, his basis is probably super low. He will have to pay capital gains tax,” Ringbauer said. “I tell my clients, if you have appreciated stock, don’t sell it. Gift it.”

That way, they get the charitable deduction based on the value of the stock and avoid netting capital gains as they steer assets to the nonprofit organization of their choice. 

Most advisors likely already know that strategy well. The stories below could present much more novel ideas about estate planning for their clients, as well as technology tools for their businesses.

Scroll down the slideshow for a roundup with links with further information about estate planning strategies and practice management and professional development resources for financial advisors. And click here for all of Financial Planning’s estate planning coverage for financial advisors and tax professionals.