hard · Certified Financial Planner Estate Planning
Darius and Elena Ostrow, ages 45 and 43, have a combined net worth of $4,000,000. They currently have no wills, powers of attorney, or advanced directives. Darius is adamant about funding a Grantor Retained Annuity Trust (GRAT) this week with 500,000 of concentrated tech stock to minimize potential estate taxes.
Following the CFP Board's Financial Planning Practice Standards, which action should the planner take first?
- Calculate the projected estate tax liability at death assuming the current 2026 Basic Exclusion Amount of $15,000,000.
- Implement the GRAT immediately as requested by the client to honor the duty to follow client instructions.
- Refer the Ostrows to an estate attorney to draft the GRAT and ILIT documents to ensure compliance with the client's timeline.
- Identify and select goals and discuss the prioritization of foundational estate documents versus advanced gifting strategies.
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