Who We Serve: Typical Clients

Trina and Leonard Meltkamp

estate plan audit

Trina Meltkamp and her husband Leonard are both 53 years of age. Professors at a prestigious university in North Carolina—Leonard is a medical researcher, and Trina teaches in the economics department—they have two children aged 17 and 19.

The Meltkamps have three major assets: their home, their university retirement accounts, and group life insurance. These assets total approximately $2 million.

One of their primary goals is to make sure that, when they pass away, their children are provided for. Their assumption is there will be enough assets to provide for college educations, as well as a solid base of assets for the children’s future support.

Although they had just completed a new will with an attorney, estate planning was not a priority for the Meltkamps when they retained our firm.

However, they were very open to—as well as curious about—our offer of an estate plan audit.

The audit showed Trina and Leonard that the assets available for distribution to their children would only be about 25 percent of the $2 million for each child—or about $500,000 each. This surprised and concerned the professors. They had incorrectly assumed that their goal of $1 million for each child would be accomplished with their existing plan, but our estate plan audit showed they would achieve only half of their intended goal.

What happened to the other money? A combination of state estate taxes, income taxes and loss of group life insurance accounted for the $1 million deficiency.

This, needless to say, was not at all acceptable.

How was the disparity resolved? We advised the Meltkamps to determine a minimum “threshold dollar amount” that they wanted to get to both of their children. After determining this number, they went back to their attorney, this time giving him the precise dollar amount that was desired for each child. The attorney made the appropriate changes in all of the documents necessary to accomplish Trina and Leonard’s goals.

In addition, they made adjustments to their life insurance to make certain that the amount of coverage needed to achieve their goal was in place.

The Meltkamps are now confident that their goal will be accomplished as they intended—thanks to our  estate plan audit, just one facet of our comprehensive financial planning service.

This material is hypothetical in nature and not intended for use as investment advice. It does not guarantee the attainment of your retirement goals. Individual results may vary. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

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