THE LEGACY YOU LEAVE ALL DEPENDS ON THE PLANNING YOU DO NOW — AND THAT PLAN NEEDS TO INCLUDE LIFE INSURANCE.
Life Insurance must be integral component of any estate plan to minimize the portion of your estate that will end up going to the IRS. Life insurance proceeds not only enjoy special treatment in the tax code but allows for incredible leverage in which you spend pennies on dollar to create a substantial tax-free lump sum that will go directly to your family and/or charity of your choice. This is how families create generational wealth and the foundations that do so much good for so many for years to come.
Life insurance is also the preferred mechanism to fund the payment of anticipated estate taxes, which will become even more critical when the current federal estate tax exemptions expire in 2025, which could drastically increase the financial exposure of affluent Americans.
We work with our client’s CPA’s and attorneys to craft a custom solution that will allow for the transfer of assets and wealth in the most efficient and cost-effective manner possible to those who will carry on the legacy you have envisioned and worked so hard to create.
CLIENT PROFILE
The Henry and Doris Brown Family Trust ▪ Multi-Generation Wealth Shift & Philanthropy
The Brown family had built a successful international technology company. Their family was very close and Mr. & Mrs. Brown, who founded the company, supports their children’s entrepreneurial endeavors.
The company was worth $100 million+ and the children were brought into the company to allow them to participate in the tremendous growth in value and help shift some of the long term estate tax burden to them. In addition, we were introduced to the family by their CPA.
Mr. Brown was concerned about the significant tax bill; his estate would have to pay when he died.
As a solution, there were multiple trusts set up and we put in place a $20 million whole life insurance policy for Mr. Brown and $10 million whole life policies for his two children. The policies were structured so that they could pay the estate tax and the significant cash values in the policies could be used by the family for investment or tax free income when needed.