Estates & Trusts Case Studies

Helping a client get the fresh start she needed

A client came to AGH after her husband passed away, and an outdated, inadequate will left her with few assets and little income. Her stepchildren were given ownership of her home, but she had the right to reside in it for her lifetime. She told us that she wanted to start over, so we helped her do just that. She sold her right to reside in the house to her stepchildren, and they in turn, sold the house. We also were able to design the transaction to take advantage of existing tax exclusions so our client paid no tax. While these results were good, they underscore the fact that AGH can be of greatest service when we are involved throughout our clients' estate planning processes.

Creating a winning proposition for families and charities

AGH helped a philanthropic, high net-worth client establish a winning proposition for his family and a charity by establishing a charitable remainder trust. The client donated stock to this charity, but he continues to receive an annual income from it for his lifetime. When he passes away, his beneficiaries will receive this income and the charity will be given the principal after a specified period of time. The bottom-line benefits: He continues to receive income from donated assets while deferring capital gain tax. He receives an income tax deduction for the donation, reducing his current income tax liabilities, and because the assets given to charity are removed from his estate, he also reduces future estate taxes. Not to mention another wonderful result – the charity will receive a substantial donation.