What is Level 2 Success?

Luminary's Level 2 Success is focused on reporting your clients' estate details and ultimate distribution to bring to life the reality of their plan. The focus of Level 2 Success is inputting the instructions on how the estate flows and layering on assumptions, such as growth rates and death years that impact reported outcomes.

Level 2 Success allows you to create an entity overview and an estate waterfall diagram. It's built on top of the foundation you set in Level 1 and is a required step to achieve Level 3 Success.

Getting started

Before you begin, please make sure the client profile basics are set up. Please see our Level 1 Success guide for more information:

📄 Quick Start Guide: Level 1 Success

A few quick notes about entering dispositions and the estate waterfall:

• Dispositions and the estate waterfall at large are always viewed through the lens of a particular death order in a two client household. When distributing a trust or holding group of assets, you're assuming if John passes first, then Jane, how will this particular vehicle distribute? Is the distribution occurring at first death, or second death?

• Most customers will build for one particular death order, whichever you're most likely to present on. You always have the option to build for both death orders.

Step 1: Enter dispositions

How:

1. Navigate to the disposition entry screen. Dispositive provisions can be accessed in three locations:

   1. Within the overview page of each entity

   2. On the Dispositions tab on the Estate section

   3. For Luminary Pro users, you can access dispositions from the waterfall side panel

2. Add a recipient for each distribution made from a given entity or holding group and fill out the corresponding recipient card details. For more detailed instructions on entering dispositions both manually and leveraging AI dispositive provisions visit the links below:

📄 Entering dispositions for entities

📄 AI dispositive provisions

Why it matters:

Dispositions are the instructions that make power both your estate flow diagram and our estate tax calculations. By inputting dispositions, you're able to generate compelling visuals that help your client understand how their estate plan operates as well as highlight outcomes whether it be giving to family and friends, charity, or taxes. Entering dispositions gets you two outputs:

• Entity overview diagram - A deliverable you can include in your presentation builder that drills in on the details of one specific trust, including how this trust splits at particular death events

• Estate waterfall diagram - A comprehensive overview of what your client owns and how their assets flow at particular death events, as well as their estimated beneficiary distributions & estate tax liability

Step 2: Edit and customize your waterfall

How:

• From the Waterfall page, click on the Diagram tab. From here, you can re-arrange and customize the tiles in your waterfall to a configuration that allows you to tell a compelling story to your client.

• The specific customizations you apply depend on your firm and client preferences. Options include:

  • Auto positioning tiles

  • Add tile notes

  • Group tiles

  • Represent tiles as icons

For more information on how to customize your waterfall, please visit the links below:

Waterfall configuration options

Cleaning up & customizing waterfall tutorial video

Why it matters:

Customizing your client's waterfall allows you to tell a clear and compelling narrative about how your client's estate flows, ensuring your client has clarity and confidence in how their plan functions. All customizations you apply will push forward to your white label client presentation slides.

Step 3: Manage the assumptions modeled in your waterfall

How:

1. Navigate to the Waterfall page

2. In the upper right corner, click the button that displays the growth rate and death year assumptions

   1. If this is your first time updating these assumptions, the firm's default growth rate and the current calendar year (for both death years) will be applied

3. When the side panel that opens, select the growth profile you would like to apply from the drop down menu. If you are creating a new one from scratch, please visit the link below for information on how to create a new growth profile:

📄 Creating client-specific growth profiles

4. To update the death year assumptions, input the desired years for each death

5. Click apply changes

• Note: You can also manage the assumptions from within the presentation builder when adding the waterfall overview page bundle. See below for more details:

📄 Waterfall overview page in the presentation builder

Why it matters:

Being able to project your client's plan into the future helps them more realistically understand what their true end of plan outcomes may be and the importance of proactive planning today. You have the ability to incorporate liabilities, cashflows, and other factors that impact projections directly in the Estate Waterfall.

Level 2 client deliverables

By completing the steps outlined above, you’ll unlock the following client-ready deliverables to include in your presentation deck. These build on your Level 1 materials and help you deliver a more comprehensive, visually compelling narrative:

• Single entity overview

• Waterfall overview

For more information on how to pull these slides into a client presentation, visit the article below:

📄 How to create presentation

📄 Pages available in the client presentation builder

For samples of the level 1 client presentation, visit the article below:

📄 Sample Presentations