“The Ins and Outs of SERP Swaps” (JofA, Oct.00, page 44) indicates that income and estate taxes consume 83% of assets and future growth. This high taxation computation is achieved by applying the 31% income tax rate twice, once for accumulating the assets and again for earnings on the investments. However, the increase in wealth to descendants is only the original accumulation and does not include the subsequent earnings on investments.
I suggest that the pie chart show the following:
|Recommended assets and future growth|| |
Victor G. Trivett, CPA