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Team Cocco Financial Planning

Legacy Strategies

IFR Module 250 -- Estate & Legacy Planning Tool

Legacy Planning: What happens to your wealth after you're gone? Estate taxes, probate costs, and poor planning can significantly reduce what reaches your heirs and charitable causes. This tool calculates your net legacy under multiple strategies and helps identify the most tax-efficient transfer approach.

Estate & Legacy Inputs

All assets at death (approximate)
Target amount for heirs/charities
Current life insurance in force
Home value minus mortgage balance
Yes
No
Desired charitable bequest
Probate, legal, executor fees
Annual gifts to reduce estate ($18,000 per person/year in 2024)
People receiving annual gifts

Estate Flow Diagram

How your estate flows from gross assets to what heirs actually receive.

Gross Estate--
Taxes & Costs--
Net to Heirs--
Estate Tax Exposure
--
40% on amount over exemption
Settlement Costs
--
Probate, legal, admin
Life Insurance Added
--
Tax-free death benefit
Legacy Gap
--
--

Estate Composition

Estate Tax Exposure Analysis

The federal estate tax exemption is $13.61 million per individual in 2024 (scheduled to drop to approximately $7 million in 2026). Estates exceeding the exemption are taxed at 40%.

Legacy Optimization Strategies

Click each strategy to explore how it can improve your legacy transfer efficiency.

Home Equity Options

Your home equity can serve multiple purposes in retirement and legacy planning.

Reverse Mortgage (HECM)

A Home Equity Conversion Mortgage allows homeowners 62+ to access home equity without selling. The loan is repaid when you move, sell, or pass away.

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Available (est. 50-60%)
--
Monthly Income (10yr)
--
Remaining Equity

Home Equity Line of Credit (HELOC)

A revolving credit line secured by your home. Interest-only payments during the draw period. Maintains full ownership and legacy value.

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Credit Line (80% LTV)
7.5%
Est. Interest Rate
--
Legacy (if unused)

Sell & Downsize

Sell the home, capture the equity, and move to a smaller/less expensive property. The difference becomes liquid assets for retirement or legacy.

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Net After Sale (6% costs)
--
Freed Capital (est.)
--
Added to Legacy

Net Legacy Comparison by Strategy

Estimated net legacy value under each strategy scenario.