The Comparison tab of RightCapital's Estate Analysis module provides you with intuitive visuals clearly illustrating the benefits of your proposed trust strategy. You can access this tab within the Estate > Analysis module of each and every client plan:
Before utilizing the Comparison tab, you will first want to propose a trust strategy. By adding a trust strategy, you can illustrate a scenario in which assets are moved from the client's taxable investments into a trust type of your choosing.
Click on the dropdown arrow below for step-by-step instructions on adding a trust strategy. Do note that you are not limited to a single trust, you can add multiple trust proposals to the trust strategy area to see the combined impact.
Once a trust strategy has been added, the Comparison tab can be used to directly compare the current strategy (without the trust) to the proposed strategy (with the trust). There are two charts available here- the Estate Planning Summary chart, and the Retirement Income chart. These charts can be toggled between using the dropdown arrow to the right of the chart name:
The Estate planning summary chart compares key metrics between the current strategy (in blue) and your proposed strategy (in green). Here, you can directly compare the total asset value passed to heirs, any amount given to charity, as well as the total taxes and fees. As you continue to make adjustments to the Action Items, these values will update in real time. You can hover your mouse over the bar chart to see specific dollar amounts:
Important Note: Action Items
Making changes to the 'Basic Information' action items will impact both the current and proposed strategies. If there are no proposed trusts included in the analysis, the current and proposed will be the same.
The Retirement income chart provides a breakdown of the client's various income sources during their retirement years. This will factor in any trust income entered as part of a trust proposal (categorized as Other Income, represented in green). You can hover your mouse over the chart to view specific dollar values, or over the legend beneath the chart to highlight or hide certain income sources:
Pro-Tip: Stable Income Percentage
The Stable income % to the right of the income sources chart represents the percentage of retirement expenses that are covered by income sources other than saving withdrawals. Social Security, Pension, Annuity, and Other Income are all considered stable income sources. Saving Withdrawals (RMDs, manual distributions, and negative net flows) are not considered stable.
