Reflect 3

Private Wealth Advisory Structured-Output Skill

Produce a single JSON object conforming to the task's answer_template.json. No prose outside the JSON. All USD amounts rounded to cents (2 decimals, JSON numbers not strings). All dates ISO YYYY-MM-DD.

1. Remote API workflow

Read the API base URL from the staged environment_access.md (the harness API_BASE). Call endpoints in this order, GET unless noted:

1. GET /api/health — confirm the environment is up.
2. GET /api/clients/<client_id> — base client record (age, filing_status, planning_year, estate_value, liquid_assets).
3. GET /api/source-documents?client_id=<id> — the conflicting source docs (CRM_NOTE, ATTORNEY_MEMO, SIGNED_PROFILE, sometimes STALE_MARKETING_INTAKE). Each has effective_date and a facts map.
4. GET /api/retirement-accounts?client_id=<id> — custodian retirement accounts (traditional/roth balances, expected_return, rmd_start_age, recommended_conversion_years).
5. GET /api/life-insurance?client_id=<id> — ILIT policy facts (death_benefit, annual_premium, planned_contribution_date, is_existing_policy_transfer).
6. GET /api/trust-candidates?client_id=<id> — GRAT/CRAT candidate (asset_value, expected_growth_rate, grat_term_years, grat_annuity_rate, crat_term_years, crat_payout_rate).
7. GET /api/policies/tax — planning constants: annual_gift_exclusion (by year), estate_tax_exemption (by year), estate_tax_rate, conversion_bracket_targets (by filing status), max_crat_term_years, charitable_deduction_rate.
8. GET /api/rmd-factors — age → RMD divisor table (73→26.5, 74→25.5, …).

Use the planning_year to pick the correct year-keyed constant (e.g., 2026 → exemption 2026 value, gift exclusion 2026 value).

2. Source-resolution precedence

Source documents conflict because they were imported at different times. Resolve by category, then by recency:

Recency tiebreak within a category: SIGNED_PROFILE (most recent effective_date) > ATTORNEY_MEMO > CRM_NOTE > STALE_MARKETING_INTAKE. When SIGNED_PROFILE and ATTORNEY_MEMO agree, either may be cited but use the category rule above for the source_resolution field that the template asks for.

Worked resolution example (generic): If a CRM_NOTE lists beneficiary_count=3 and annual_non_ira_income higher than the SIGNED_PROFILE, discard the CRM values — SIGNED_PROFILE controls client-stated facts (use the SIGNED_PROFILE beneficiary_count and income). If a CUSTODIAN_EXPORT shows a different traditional balance than a CRM note, use the custodian balance. If SIGNED_PROFILE and ATTORNEY_MEMO disagree on philanthropic_intent, the ATTORNEY_MEMO is the controlling goal source for trust-strategy preference, while SIGNED_PROFILE remains controlling for the client-stated profile fields used in dollar math (income, marginal_rate, age).

source_resolution output fields (set exactly those the template requires):

• controlling_profile_source (roth tasks) = SIGNED_PROFILE
• controlling_account_source (roth tasks) = CUSTODIAN_EXPORT
• controlling_beneficiary_source (ILIT tasks) = SIGNED_PROFILE
• controlling_policy_source (ILIT/estate tasks) = ATTORNEY_MEMO per the attorney-controls-trust-assets convention (the ILIT is a trust instrument). The life-insurance record is the carrier source of policy numbers; if a task instead expects the carrier record to control, CUSTODIAN_EXPORT is the alternative — this field was not discriminative in training, so default to ATTORNEY_MEMO.
• controlling_goal_source (trust_comparison / estate tasks) = ATTORNEY_MEMO
• controlling_asset_source (trust_comparison) = SIGNED_PROFILE

3. Cross-cutting calculation rules

• Estate tax — exemption IS applied. taxable_estate = estate_value − estate_tax_exemption[year]; estate_tax_exposure = taxable_estate × estate_tax_rate; liquidity_gap_before_planning = estate_tax_exposure − liquid_assets. (Confirmed: applying the exemption is correct; using the gross estate with no exemption is wrong.)
• GRAT/CRAT remainder (compound future value, nominal payouts). projected = asset_value × (1 + expected_growth_rate)^term; nominal_payouts = asset_value × payout_rate × term; remainder = projected − nominal_payouts. Use compound growth (1+g)^t, NOT simple interest 1+g*t. payouts are the simple undiscounted sum (nominal), not grown.
  • GRAT projected_remainder_to_heirs = remainder (GRAT term, grat_annuity_rate).
  • CRAT projected_charitable_remainder = remainder (CRAT term, crat_payout_rate; term = min(candidate crat_term_years, max_crat_term_years), usually 20).
• GRAT estimated_estate_tax_reduction = projected_remainder_to_heirs × estate_tax_rate.
• CRAT estimated_income_tax_deduction = projected_charitable_remainder × charitable_deduction_rate.
• CRAT family_transfer_fit = MODERATE (CRAT pays an income stream to a non-charitable beneficiary but the remainder goes to charity). mortality_inclusion_risk (GRAT) = TERM_SURVIVAL_REQUIRED.
• Crummey date arithmetic (from planned_contribution_date = contribution_date): notice_due_date = contribution_date + 7 days; withdrawal_window_end = contribution_date + 30 days; earliest_premium_payment_date = withdrawal_window_end + 1 day (premium is paid only after the withdrawal window closes). Use calendar-day addition.
• ILIT gift plan. annual_exclusion_per_beneficiary = annual_gift_exclusion[year]; annual_exclusion_capacity = beneficiary_count × annual_exclusion_per_beneficiary; annual_premium from the life-insurance record; premium_gap = max(0, annual_premium − annual_exclusion_capacity) (report the shortfall; 0 when capacity covers the premium, not a negative surplus).
• Roth conversion. bracket_room = conversion_bracket_targets[filing_status] − annual_non_ira_income; annual_conversion_amount = min(bracket_room, traditional_balance / recommended_conversion_years); total_converted = annual_conversion_amount × conversion_years_positive; total_conversion_tax = total_converted × marginal_tax_rate.
• RMD. first_rmd_year = planning_year + (rmd_start_age − age); each RMD year rmd = start_of_year_traditional_balance / rmd_factor[age]; RMD tax = rmd × marginal_tax_rate. The RMD factor table only covers age 73–99; horizon ages beyond 99 are uncommon but if encountered use the age-99 factor (6.8) as the floor.
• Balance/RMD simulation (roth tasks), run baseline (no conversion) and conversion scenarios from planning_year through horizon_year inclusive, each year in this order: (1) if a conversion year, subtract annual_conversion_amount from traditional, add to Roth, accrue conversion tax; (2) if age ≥ rmd_start_age, withdraw RMD = current traditional balance / rmd_factor[age], accrue RMD tax; (3) grow both balances by expected_return. The existing roth_balance (if non-zero) seeds Roth in both scenarios. baseline_rmd_tax_through_horizon, conversion_rmd_tax_through_horizon = summed RMD taxes; rmd_tax_savings_through_horizon = baseline − conversion. Conversion years are planning_year … planning_year + recommended_conversion_years − 1 (they may overlap RMD years — keep the order above).
• Legacy projection = conversion-scenario balances at horizon year. heir_tax_profile: compute roth_frac = projected_roth_balance_horizon / (roth + traditional); MOSTLY_TAX_FREE if > ~2/3, MOSTLY_TAXABLE if < ~1/3, else MIXED_TAXABLE_AND_TAX_FREE.
• action_set (estate tasks): list of applicable action enums, sorted alphabetically. See per-task section for inclusion.
• Rounding: round every USD field to 2 decimals at the end (use round-half-up via round(x + 1e-9, 2)).

4. Per analysis type

a. roth_conversion_rmd (Roth conversion + RMD tax summary)

Fields: recommendation, conversion_plan, rmd_projection, legacy_projection, source_resolution.

• recommendation.primary_action = STAGED_ROTH_CONVERSION whenever bracket_room > 0 (conversions are feasible).
• recommendation.suitability = SUITABLE when bracket_room > 0 (the conversion is suitable; do not mark BORDERLINE merely because RMD is near — suitability tracks feasibility, not runway).
• recommendation.risk_flag = RMD_NEAR_TERM if first_rmd_year − planning_year ≤ ~2; else TAX_BRACKET_MANAGEMENT (or LIQUIDITY_CONSTRAINT if liquid_assets cannot cover total_conversion_tax).
• conversion_plan: first_conversion_year = planning_year; conversion_years = recommended_conversion_years; conversion_years_positive = conversion_years when bracket_room < balance/years (all years convert the full bracket room); annual_conversion_amount, total_converted, total_conversion_tax per §3.
• rmd_projection: horizon_year from the memo (use the stated horizon year, e.g. 2042 or 2046); first_rmd_year per §3; the three tax fields from the simulation. rmd_tax_savings_through_horizon = baseline_rmd_tax_through_horizon − conversion_rmd_tax_through_horizon (positive when conversions reduce future RMD tax).
• legacy_projection: projected_roth_balance_horizon and projected_traditional_balance_horizon are the conversion-scenario end balances (the recommended plan); include the existing Roth seed; heir_tax_profile per §3.
• source_resolution: controlling_profile_source = SIGNED_PROFILE, controlling_account_source = CUSTODIAN_EXPORT.

b. ilit_crummey_implementation (ILIT Crummey funding cycle)

Fields: recommendation, gift_plan, administration, estate_result, source_resolution.

• recommendation.primary_action: FUND_WITH_CRUMMEY_NOTICES when annual_exclusion_capacity ≥ annual_premium; USE_LIFETIME_EXEMPTION_FOR_SHORTFALL when capacity < premium; USE_NEW_POLICY_OR_ACCEPT_LOOKBACK / DISCLOSE_LOOKBACK_AND_USE_EXEMPTION when is_existing_policy_transfer (3-year lookback).
• recommendation.suitability: SUITABLE_WITH_ADMINISTRATION when funded with Crummey notices and formalities are met; BORDERLINE / NOT_SUITABLE otherwise.
• recommendation.risk_flag: LOW_IF_FORMALITIES_MET (new policy, no shortfall); EXCLUSION_SHORTFALL (capacity < premium); THREE_YEAR_LOOKBACK (existing policy transfer); combine as THREE_YEAR_LOOKBACK_AND_EXCLUSION_SHORTFALL if both.
• gift_plan: planning_year, annual_exclusion_per_beneficiary, beneficiary_count (SIGNED_PROFILE), annual_exclusion_capacity, annual_premium, premium_gap (§3).
• administration: notices_required = beneficiary_count; contribution_date = planned_contribution_date; notice_due_date, withdrawal_window_end, earliest_premium_payment_date (§3 Crummey arithmetic); dedicated_bank_account_required = true.
• estate_result: death_benefit; estate_inclusion_risk = same as recommendation.risk_flag; projected_outside_estate_if_implemented = death_benefit (the ILIT-owned death benefit escapes the estate); tax_liquidity_support = death_benefit (the death benefit is the liquidity asset that supports estate-tax payment).
• source_resolution: controlling_beneficiary_source = SIGNED_PROFILE, controlling_policy_source = ATTORNEY_MEMO (default; see §2 note).

c. trust_comparison (GRAT vs CRAT)

Fields: recommendation, estate_context, grat, crat, source_resolution.

• recommendation.preferred_strategy: driven by the controlling goal source's (ATTORNEY_MEMO) philanthropic_intent — CRAT when philanthropic_intent is moderate or high; GRAT when low. (Do not decide purely by family_transfer_priority level; empirically moderate philanthropy selects CRAT even when family transfer is also high.)
  • If CRAT: rationale_code = PHILANTHROPIC_PRIORITY, alternate_role = SECONDARY_FAMILY_TRANSFER_TOOL (GRAT is the secondary family-transfer tool).
  • If GRAT: rationale_code = CHILDREN_TRANSFER_PRIORITY, alternate_role = SECONDARY_CHARITABLE_TOOL (CRAT is the secondary charitable tool).
• estate_context: taxable_estate = estate_value − exemption, estate_tax_exposure = taxable_estate × rate, liquidity_gap_before_planning = exposure − liquid_assets (§3 exemption applied).
• grat: term_years from trust candidate; projected_remainder_to_heirs (§3 compound); estimated_estate_tax_reduction = remainder × rate; mortality_inclusion_risk = TERM_SURVIVAL_REQUIRED.
• crat: term_years = min(candidate, max_crat_term_years); projected_charitable_remainder (§3 compound); estimated_income_tax_deduction = char_remainder × charitable_deduction_rate; family_transfer_fit = MODERATE.
• source_resolution: controlling_goal_source = ATTORNEY_MEMO, controlling_asset_source = SIGNED_PROFILE.

d. estate_liquidity_action_plan (combined ILIT + trust transfer)

Fields: recommendation, estate_context, ilit, trust_transfer, action_set, source_resolution.

• recommendation.primary_action: COMBINE_ILIT_AND_GRAT when the case pairs an ILIT (liquidity) with a GRAT (family transfer, philanthropic low); CRAT_WITH_LIQUIDITY_REVIEW when philanthropic is the priority; ILIT_WITH_EXEMPTION_REVIEW when the ILIT has an exclusion shortfall needing exemption review.
• recommendation.sequencing: ILIT_FIRST_THEN_GRAT for the combined case (ILIT first for estate-tax liquidity, then GRAT for transfer); TRUST_DECISION_FIRST / ILIT_FIRST_THEN_ATTORNEY_REVIEW for the other primary actions.
• recommendation.risk_flag: ILIT risk flags as in (b).
• estate_context: exemption applied (§3).
• ilit: annual_exclusion_capacity, premium_gap (§3), estate_inclusion_risk (as in b), projected_outside_estate_if_implemented = death_benefit.
• trust_transfer: preferred_strategy (CRAT if philanthropic mod/high, GRAT if low — same rule as (c)); projected_remainder_to_heirs & estimated_estate_tax_reduction (GRAT, §3 compound); projected_charitable_remainder (CRAT, §3 compound). Compute both GRAT and CRAT projection fields regardless of preference.
• action_set (sorted alphabetically): include ATTORNEY_DRAFT_REVIEW, GRAT_FOR_APPRECIATING_SHARES, ILIT_CRUMMEY_NOTICE_CYCLE, and LIFETIME_EXEMPTION_ALLOCATION (the GRAT remainder is a taxable gift using lifetime exemption; also include if there is an ILIT exclusion shortfall). Include CRAT_FOR_CHARITABLE_REMAINDER only when CRAT is the preferred strategy. Exclude actions for tools not in the plan.
• source_resolution: controlling_goal_source = ATTORNEY_MEMO, controlling_policy_source = ATTORNEY_MEMO (default; see §2 note).

5. Numbered end-to-end SOP

1. Read the task prompt.txt, request_memo.md (engagement + planning horizon year if stated), and answer_template.json (required keys + enums).
2. Fetch the eight endpoints in §1 order. Cache policies/tax and rmd-factors (shared across clients).
3. Resolve every contested fact via §2 (SIGNED_PROFILE for client-stated, CUSTODIAN_EXPORT for balances, ATTORNEY_MEMO for strategy goals, SIGNED_PROFILE for the trust-candidate asset value).
4. Compute the analysis-type-specific fields per §4, applying the cross-cutting rules in §3.
5. Round every USD field to 2 decimals; format dates ISO; ensure numbers are JSON numbers.
6. Cross-check enum values against the template exactly (e.g., STAGED_ROTH_CONVERSION, LOW_IF_FORMALITIES_MET, TERM_SURVIVAL_REQUIRED) — misspellings or synonyms are wrong.
7. Verify the action_set (estate tasks) is sorted alphabetically and contains only actions for tools actually in the plan.
8. Emit only the JSON object with every required top-level key and the correct task_id/client_id/analysis_type.

6. Key distinctions to get right (refined via training feedback)

• Apply the estate-tax exemption. Subtract estate_tax_exemption from estate_value before multiplying by estate_tax_rate. Using the gross estate (no exemption) is a major scoring loss; the same applies to taxable_estate (it is the net-of-exemption amount, not gross).
• Compound growth for GRAT/CRAT remainders, not simple interest. projected = asset × (1+g)^t. Simple interest asset×(1+g·t) is wrong. Payouts are the nominal undiscounted sum asset×rate×t.
• estate_tax_reduction and income_tax_deduction are rate-multiplied, not raw remainders. GRAT estate-tax reduction = remainder × estate_tax_rate; CRAT income-tax deduction = char_remainder × charitable_deduction_rate (distinct from the raw projection, avoiding redundancy with projected_charitable_remainder).
• Crummey premium timing: the earliest premium payment is the day after the 30-day withdrawal window closes — not the day after the contribution. Notice due = contribution + 7; window end = contribution + 30; premium = window end + 1.
• premium_gap is the shortfall (≥0). When exclusion capacity covers the premium, report 0, not a negative surplus.
• Roth suitability is SUITABLE when bracket room exists, even for near-RMD clients; do not default to BORDERLINE. Reserve BORDERLINE/DEFER for cases with no bracket room or liquidity constraints. risk_flag (e.g., RMD_NEAR_TERM) is the separate field that captures the near-RMD concern.
• trust_comparison preference keys on philanthropic_intent, not family_transfer_priority: moderate/high philanthropy → CRAT; low → GRAT. Choosing GRAT purely because family_transfer_priority is "high" is a frequent mistake.
• Source winners: goal → ATTORNEY_MEMO; trust-candidate asset value → SIGNED_PROFILE; beneficiary count → SIGNED_PROFILE; client profile facts → SIGNED_PROFILE; account balances → CUSTODIAN_EXPORT. Mixing these (e.g., goal from SIGNED, asset from ATTORNEY) loses points.
• heir_tax_profile thresholds are thirds, not 0.5: MOSTLY_TAX_FREE requires roth_frac above ~2/3, MOSTLY_TAXABLE below ~1/3, otherwise MIXED_TAXABLE_AND_TAX_FREE. A roth_frac just under 0.5 is still MIXED, not MOSTLY_TAXABLE.
• conversion_years_positive equals conversion_years when bracket room is the binding constraint (bracket_room < balance/years); do not reduce it for RMD-year overlap.

7. Common mistakes / exclusions

• Do not use the stale CRM_NOTE or STALE_MARKETING_INTAKE values for client-stated facts (income, beneficiary_count, goals) — they are outdated imports; SIGNED_PROFILE controls.
• Do not subtract the exemption from the estate-tax-rate base incorrectly: exemption subtracts from the estate (base), and estate_tax_rate then applies to the net — do not also subtract exemption × rate (that double-counts).
• Do not compute RMD on the post-growth balance; use the start-of-year balance divided by the age factor, then grow the remainder.
• Do not cap total_converted at the initial balance when annual × years < balance (that is the normal case when bracket room is the binding constraint); only the per-year amount is min-capped.
• Do not include CRAT actions in the action_set when GRAT is the preferred trust and philanthropic intent is low.
• Do not omit the existing roth_balance seed in the conversion-scenario legacy projection.
• Do not return numbers as strings, omit required top-level keys, or add prose outside the JSON.
• Do not invent sources not present in the source-documents payload; only cite enum values (SIGNED_PROFILE, ATTORNEY_MEMO, CUSTODIAN_EXPORT, CRM_NOTE, STALE_MARKETING_INTAKE) that actually appear for the client.
• Do not round intermediate balances before the final field — round only the emitted USD fields to cents, after summing taxes and projecting balances.
• Do not mix growth-rate sources: use expected_growth_rate (trust candidate) for GRAT/CRAT projections and expected_return (retirement account) for Roth/RMD projections; they are distinct fields.
• Do not use the prior-year-end balance convention differently per task — for RMD use the start-of-year (i.e., carried-over) traditional balance divided by the age factor, then grow the remainder by expected_return.
• When recommended_conversion_years overlaps RMD years, still convert the full annual_conversion_amount each conversion year (the per-year amount is the bracket-room min, not reduced by RMD income); the simulation order in §3 handles the interaction.