effective wealth transfer strategies
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Effective Wealth Transfer Strategies. Maximizing the value of your estate. This Strategy is best suited for: People who want to leave more wealth to their heirs or favorite charities. - or - Anyone with assets that they do not anticipate using during their lifetime. - PowerPoint PPT PresentationTRANSCRIPT
Effective Wealth Transfer Strategies
Maximizing the value of your estate.
This Strategy is best suited for:• People who want to leave more wealth to their heirs
or favorite charities.
- or -
• Anyone with assets that they do not anticipate using during their lifetime.
Effective Wealth Transfer Strategies
Our Philosophy1. To preserve your lifestyle.
2. To protect your hard earned savings.
3. To maximize what you leave to each other and to your heirs.
4. To minimize the tax burden your heirs will be faced with as your wealth transfers to them.
Effective Wealth Transfer Strategies
Always remember you have two beneficiaries in your estate:•Your heirs•The IRS
Three Asset Classes
TaxableCDs
Savings
Stocks
Bonds
Mutual Funds
Rental Income
Tax DeferredAnnuities
IRAs
401(k)s
TSAs
Income Tax Free*
Life Insurance
*Death benefit is generally tax free to your beneficiary
What makes Life Insurance Federal Income Tax Free?
“Life insurance proceeds paid to you because of the death of the insured person are not taxable…”
What can a wealth transfer life plan do for you?
• Immediately increase the value of your assets.• Increased values are fully guaranteed.• Increased values are free from market risk.• No federal income taxes.*• Available cash for unexpected emergencies.• No probate costs.**• Proceeds transfer rapidly; no delays.• Unlike a will, beneficiary designations cannot be
contested.***
*Generally, death benefits pass to your named beneficiary tax free. **Generally, life insurance proceeds by-pass probate On the same page, the 8th bullet point, place a triple asterisk at the end of the line. ***A claim must be submitted to the life insurance company, with complete documentation as required under the policy.
What can a wealth transfer plan do for you?
A wealth transfer plan can give you a significant head start on what you will leave to your heirs.
Immediate Value At 10 years At 15 years
Assumes CD and Annuity rates of 3.50%. Annuity values shown are tax deferred. *premium paid of $50,000 amount provides the death benefit payable to your heirs at death
50k 50k
104k 104k 104k
64k70k 72k
84k
* **
What can a wealth transfer plan do for you?
A wealth transfer plan can help you lock in or increase your existing values while eliminating market risk.
Client originally purchased
$50,000
In stock.
The stock grew by $20,000 over a
number of years:
$70,000
The client would like to eliminate market
risk but is concerned about the impact of capital gains taxes.
Strategy: Client sells the stock and
pays $3,000 in capital gains taxes.
The remaining value $67,000 is placed
into a wealth transfer plan.
The Wealth Transfer Life Plan guarantees
a total value of
$121,801
This increase is locked in
immediately and passes income tax free to their heirs
most likely avoiding probate.
Example:
70-year old
What can a wealth transfer plan do for you?
A wealth transfer plan can recover lost wealth from market corrections.
$140,000
$95,000
$159,965Immediate Increase (face amount)
Income tax free death benefit
Usually avoids probate
What can a wealth transfer plan do for you?A wealth transfer plan can make your interest more interesting.
$178,571Earning 3.5 %
Female Age 73: She has $178,571 earning 3.5% or $6,250 / year.
$139,000Generally Income
TAX FREE!!
Each year after taxes she uses her interest to purchase a wealth transfer plan.
This adds an additional $139,000 to her estate INCOME TAX FREE.
$6,250 $6,250 annuallyannually
$317,571
Total Value:
78%
Increase
$44,750Freed up for
your use!
What can a wealth transfer plan do for you?
A wealth transfer plan can free up valuable dollars while still accomplishing your goal of leaving assets to your loved ones.
$100,000Asset
earmarked to be left to heirs
Wealth transferlife plan createsan immediate
benefit value of
$100,000
Income Tax Free
$55,250Transferred to awealth transfer
life plan.
What can a wealth transfer plan do for you?
A wealth transfer life insurance plan can immediately maximize the value of the assets you leave to those you care about most.
• Benefits are income tax free, in most cases.• Values are guaranteed.• Assets normally transfer outside of probate costs and
delays.
Increase your wealth today!Increase your wealth today!
How do you feel about:
• An Immediate increase to the value of your asset?• Your values being fully guaranteed?• Your assets being free from market risk?• Likely eliminating federal income taxes?• Likely avoiding probate costs & delays?• Your assets transferring rapidly with no delays?• Your desires for your beneficiaries not being
contested?