They say there are only two certainties in life:
Death & Taxes...
If you have been successful and built a large estate, when you pass away, Uncle Sam comes calling (again).
One can argue over whether or not this is fair, but as it stands today, you are only able to pass so much to the next generation without paying the federal estate tax of 40% on your includable assets. In most cases, to add injury to insult, the tax is due within nine months of your passing.
Some advisors argue that if you have a large estate, you have the assets to pay Uncle Sam. I would ask you to consider: Why give up a dollar of the asset or full value, which you may or may not have had to pay tax on, and potentially lose future earnings power of that dollar? To maximize the passing of accumulated wealth from generation to generation, we help clients understand and implement a tax-efficient life insurance strategy. If structured properly, life insurance provides tax-free dollars or discounted “pennies for dollars” to pay Uncle Sam.
Should you consider leveraging the tax-free benefits of life insurance to plan for a future federal estate tax?
If you have questions or would like more information, please contact us, we look forward to your call.
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