tax questions

Five tax questions for your clients

Clients who discuss tax concerns with their advisors have a higher level of satisfaction with those advisors, according to Lincoln research.1

In fact, we found that the more planning issues advisors address with clients, the higher their clients’ satisfaction – up to 86 percent satisfaction for seven or more issues compared to 51 percent for only one or two issues. 

So how can you deepen your relationships and match clients’ tax concerns with effective wealth protection solutions? Here are five tips you should consider when helping your clients with effective tax management.

  1. Do your clients actively manage their money and trade equities frequently as part of their disposable income? 
    Whether these clients are using actively managed equity vehicles under your guidance, or assets not yet inside your business, they may need guidance on the tax implications of capital gains.
  2. Do your clients own more than one property? Where are their primary residences? 
    Depending on the answer, your clients may be subject to the alternate minimum tax (AMT) rate. 
  3. Are your clients planning for any lifestyle changes, such as retirement? 
    Timing matters. Tax rates on capital gains may rise or fall in the future, so selling a primary residence or liquidating a business with enough preparation could help clients manage the impact of taxes.
  4. Do your clients have a financial legacy? 
    Providing future financial support for children or grandchildren can sometimes translate into a tax burden depending on the size of the inheritance. 
  5. How are your clients preparing to fund their retirement?
    Your clients will face many expenses during retirement, from daily expenses to health and long-term care costs that may take them by surprise. Having a conversation with clients now can help them proactively plan for any tax consequences in the future. 

Want to show your clients where their money is going? Read the infographic, “Taxes: Control what you can.”

1Lincoln Financial Group and Hanover Research, “Managing Long-Term Care Risks,” October 2014;