Transferring Wealth
 
 
Like her husband, Ellen Pfeifer* always had an interest in financial matters. Jack Pfeifer, a Florida-based airline pilot, researched, bought and sold stocks on his own. Ellen, on the other hand, preferred to invest by consulting with her Financial Advisor, whom she first met at the suggestion of her husband’s co-workers. When Jack retired, the couple had assets in the middle seven figures spread across a number of accounts with various banks and investment firms.

When Jack died unexpectedly at the age of 62, the couple had a 30-year-old will, and Ellen suddenly faced a number of financial issues, including estate tax liabilities. That’s when her relationship with her Baird Financial Advisor blossomed to give her and her two adult children the support they needed.

“When my husband died, my Financial Advisor helped me through a lot of things,” she said. “He was persistent, in a kind way, helping me focus on important things. I needed that then.”

Ellen’s Baird Financial Advisor lined up an attorney and a CPA who had the experience Ellen needed, and then arranged conference calls with Ellen and the other professionals to work through the many issues in play. As part of the process, the Baird Financial Advisor suggested a technique whereby Ellen would disclaim part of the inheritance she was to receive from her husband’s estate. Instead of going to Ellen, the disclaimed assets passed directly to the children and were invested to provide for their future. Ellen discussed the suggestion with her attorney and decided to proceed. This immediately positioned the assets in a way that will save the family nearly one million dollars in future estate taxes. Additionally, all future appreciation on the disclaimed assets will also escape estate taxation.

Now most of Ellen’s assets are invested through Baird, and her Financial Advisor has developed a comprehensive plan built around Ellen’s immediate and future needs and objectives – with an eye to eventually passing her wealth to her children in a tax-efficient manner when she’s gone.

The confidence she feels in working with her Baird advisor comes not only from his financial expertise, but also his communication skills, she said. “I like to learn, and he just explains everything so well," she said. "He’s a very good teacher."

For his part, Ellen’s Baird Financial Advisor said Ellen is very curious and has a great capacity to understand complex investment and tax issues. He sees his role as developing a plan to manage Ellen’s assets in a way that’s right for her – working closely with Baird’s specialists in specific areas, as well as Ellen’s other professional advisors.

Ellen also appreciates her Baird advisor’s accessibility and responsiveness. “We have a personal relationship,” Ellen said of her advisor. “He knows me and my whole situation and knows what I want. I trust his judgment. That’s really a relief.”
*Names in this text have been changed to protect the clients’ privacy.

Robert W. Baird & Co. does not offer legal or tax advice. This client story may not be representative of the experience of other clients, and is no guarantee of future performance or success.
 
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