Craig Wear, a CFP, breaks down when tax-avoidance strategies benefit you versus your heirs. Before 75, you keep about 80% of the savings. After 75, that flips and your heirs get 80%. He walks through a $2 million example for high-net-worth people deciding whether to convert now or later.
About 80%.
About 80%.
$2 million.
Now, if you're 75 and over, there still are going to be benefits to you to do this, but a lot of the benefits are going to go to your heirs. So let's say if in, if you're between 59 and 74, just to pull a number out of the air of 80% of the benefits in the tax avoidance from deed conversions were going to accrue to you, then at 75 or older, it's probably 80% is going to accrue to your heirs. That still could be $2 million of tax avoidance. But if you got those kind of assets, it really makes a lot of sense to really get serious about developing some sort of a conversion strategy.
