“This is a hypothetical example and is not representative of any specific investment. Your results may vary.”

Client details have been modified for confidentiality.

The Situation
A retired couple, both age 68, was referred to our firm by a retired CPA. They had accumulated substantial assets over time, including:

• A seven-figure IRA concentrated in the wife’s name
• Approximately $1.2 million in non-qualified assets
• Existing estate planning documents prepared by an attorney

From a legal standpoint, their estate plan was in place. From a financial standpoint, however, several elements were not aligned with how those documents were intended to function.

What We Observed

1. Asset Titling Did Not Fully Support the Estate Plan

Their accounts across prior institutions were primarily titled as:

• Joint Tenants with Rights of Survivorship (JTWROS)

While common, this structure:

• Can bypass certain trust provisions
• Does not provide the same level of creditor protection as other options available to married couples in Florida such as Tenancy by the Entirety

2. Beneficiary Designations Lacked Specificity

We identified:

• Inconsistent use of contingent beneficiaries
• Lack of clarity between per stirpes vs. per capita designations
• No clear coordination between beneficiary structures and estate documents

3. Trust Coordination Was Incomplete

Although estate documents had been drafted:

• Certain accounts were not aligned with the trust structure
• Transfer mechanisms (e.g., TOD designations) were not consistently implemented

4. Risk Exposure Was Overlooked

Despite having significant non-qualified assets:

• Their auto liability coverage was insufficient relative to their net worth
• No umbrella liability policy had been implemented

5. Financial Decisions Were Not Coordinated With Long-Term Estate Outcomes

Their income strategy relied on, monthly distributions from the IRA

This approach. created potential strain on the surviving spouse under a single filing status

How We Addressed These Gaps

1. Re-Structured Asset Titling

We coordinated updates to:

• Transition appropriate accounts to Tenancy by the Entirety (TBE) TOD to the Trust
• Improve creditor protection under Florida law
• Align ownership with both estate intent and asset protection considerations

2. Aligned Beneficiary Designations

We implemented:

• Clear primary and contingent beneficiary structures
• Use of per stirpes / per capita designations consistent with client intent
• Coordination between retirement accounts and estate documents

3. Integrated Trust Alignment

We worked alongside their estate planning attorney to:

• Ensure accounts were properly aligned with the trust
• Implement consistent Transfer on Death (TOD) designations where appropriate
• Provide complete asset documentation to support legal review and updates

4. Addressed Risk Exposure

We identified and resolved a critical gap by:

• Recommending and implementing an umbrella liability policy
• Aligning vehicle ownership with primary drivers
• Reducing exposure relative to their non-qualified asset base

5. Reframed Their Income & Tax Strategy

We transitioned their income approach by:

• Reducing reliance on IRA distributions
• Utilizing non-qualified assets for income

This allowed for:

• Implementation of a multi-year Roth conversion strategy
• Approximately 35% of the IRA has been converted to date
• Continued conversions planned through age 73

We coordinated this work with their CPA to ensure all actions aligned with their tax profile.

The Result
Following these changes:

• Asset titling now supports both estate intent and asset protection
• Beneficiary designations are clear, consistent, and coordinated
• Trust structures are properly aligned with financial accounts
• Risk exposure has been materially reduced
• Tax planning is integrated into their long-term estate strategy

Key Takeaway
The client did not have a poorly designed estate plan.

They had a well-drafted plan that had not been fully implemented or maintained in alignment with their financial structure.

The issue was not legal design, it was practical execution.

Why This Matters
Even strong estate plans can fail to function as intended when:

• Asset titling is inconsistent
• Beneficiary designations are outdated or unclear
• Financial decisions are made without coordination
• Ongoing review is absent

Our Role
At Fero Financial, we work alongside estate attorneys and CPAs to ensure that:

• Financial structures reflect legal intent
• Changes over time do not disrupt the plan
• Implementation is monitored—not assumed

Conclusion
Estate planning does not end with document execution.

It requires:

Ongoing alignment between legal structure and financial reality.

When that alignment is maintained, the plan functions as intended—
not just in theory, but in practice.

About Fero Financial
Fero Financial provides comprehensive financial planning focused on coordinating investment strategy, tax planning, and estate structures to support clients through life transitions.

For Professional Collaboration
If you have a client whose estate plan may benefit from alignment and implementation review, we welcome the opportunity to coordinate with you.