Retired widow relocating to Florida

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    • After losing her spouse, a client wanted to explore the option of moving to Florida.

    • The Situation

    • Massachusetts resident for the previous 30 years
    • Strong desire to downsize large home and escape New England winter
    • Subject to a $600,000 MA estate tax upon death
    • Two adult children living in MA; no grandchildren
    • Valuable artwork purchased by late husband
    • Desire to continue philanthropic giving in more effective ways

    • Our Approach

    • Helped evaluate pros and cons of moving to Florida (income tax, estate tax, access to health care, etc.)
    • Modeled the impact of the move on the financial plan (prepared scenarios on new property expenses, club membership, family travel expenses, etc.)
    • Reviewed Social Security benefits and survivor options
    • Minimized capital gains taxes by establishing the adjusted cost basis on the MA property
    • Borrowed against the portfolio on margin at very favorable rates to purchase the new house in FL before selling the residence in MA
    • Provided a comprehensive list of recommended steps to change residency to FL
    • Terminated her private foundation and opened a donor advised fund (DAF) to lower costs and ease administration

    • COLLABORATING WITH SPECIALISTS

    • Confirmed the income and estate tax benefits of the move with her accountant
    • Introduced her to an appraiser to create an artwork inventory and to determine what to keep, sell or donate to charity
    • Connected her with a professional organizer to help sort and divest household belongings
    • Introduced her to an estate attorney in FL to re-domicile her documents, retitle accounts and change beneficiaries
    • Updated auto, home and umbrella policies with insurance agent

    • SIGNIFICANT RESULTS

    • Relocated to Naples, FL, in a community that supports her active lifestyle
    • Funded a $1M home purchase in FL with a cost effective bridge loan
    • Eliminated the $600,000 MA estate tax and the annual $20,000 MA income tax
    • Amended and restated estate planning documents to satisfy FL law
    • Maximized Social Security by collecting as a surviving spouse while deferring her own benefits to grow 8% per year until age 70
    • Saved roughly $5,000 in annual administrative expenses by transferring to a DAF