“[Advisors] can go in and model in those different strategies into the tax projector tool to see how that would impact a client’s current tax liability and future tax liability,” he said.
The Tax Projector complements an estate planning version of the tool, which also came out in 2020. The estate planning version analyzes legal documents related to estate planning, including wills, trusts, powers of attorney and healthcare proxies. The AI then reads them and shows clients a snapshot with a distribution plan, Altfest said, demonstrating the ways assets will be distributed in accordance with a person’s wishes and the tax implications of their choices.
Altfest hopes the Tax Projector will appeal to those advisors who do not normally handle tax planning and make them feel comfortable in the space. He also says it’s an inexpensive option for advisors who do have experience in the space.
“We’re bringing new people into the market, plus clients aren’t getting help in tax planning but want it,” he said. “But for the people who are doing tax planning, they’re also using our software … they look at this as a big-time savings.”
The firm is always looking to improve and roll out new projects. It will launch its next big upgrades for both the Tax Projector and the estate planning tool by the end of March next year, and it will release smaller enhancements in the interim, Schwab said.