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Clients Seeking Estate Tax Mitigation
Individuals who are looking to reduce their estate tax liabilities.
The “Why”
Ultimate Estate Planning and Tax-Free Income Generation for Individuals / Business Owners
Who is the Plan For?
High Net Worth Individuals or Business Entities: Specifically, those with a current net worth of $25M or more. The program looks to provide leverage for high income generators and helps families protect their hard-earned assets.
Net Worth is used to determine how much Life Insurance an Individual/Spouse can qualify for the Estate protection program. Gross Income is used as the qualifier for the Tax-Free Income generation program. Oftentimes, your net worth will also include business value times your ownership percentage.
For those clients who do not yet have a $25M there are other structures we can offer which are equally as compelling with similar benefits. Clients Gross Income is used to determine the future Tax-free distribution program (Gross Income X an Age Multiplier)
Clients seeking to create significant future tax-free distribution streams:
Client look ing to build a future tax-free stream of distributions for life.
Clients with Philanthropic Interests
Those who are interested in enhancing their philanthropic giving.
Clients Focused on Multi-Generational Wealth Transfer
Those wanting to ensure wealth transfer across generations without significant tax implications
What Does It Do?
Provides Permanent Estate Value Life Insurance: This structure can likely provide up to $400 million of permanent estate value for $0 out-of-pocket (ever). life insurance coverage.
Tax Benefits: The proceeds from the structures are income tax-free and potentially estate tax-free.
Collateral Options: Allows the use of various collateral options including cash, managed assets, or a letter of credit.
Volatility Protection: The underlying asset is principal protecting, by regulation the principal value of the assets cannot go down due to market performance. Ensures that the underlying asset is protected from market volatility, safeguarding the principal amount.
How Does It Benefit the Client?
In The Majority Of Cases, No Out-of-Pocket Premiums
The unique structure finances 100% of the premiums and interest, meaning the client does not need to use gift tax exemption capacity. In the majority of our solutions, clients can reallocate their capital from paying large current insurance premiums into more advantageous personal investment opportunities.
Estate Tax Mitigation
This structure can typically off-set the entire amount of estate taxes payable, preserving more wealth for your heirs and causes you care about.
Principal Protection
Ensures that the principal amount invested is not negatively affected by market changes. Clients could access various Index strategies like S&P 500, NASDAQ 100 along with other blended strategies that have zero risk and significant upside.
Tax-Free Benefits
Provides the option for clients to access tax-free income during their working or retirement years, for any reason without penalty.
Flexible Collateral Use
Clients can use the structure with zero cash outlay and various collateral options.
How Does It Work?
Premium Financing is a strategy whereby a qualified borrower accesses third-party financing to pay for large life insurance premiums.
The insurance companies have constructed specific products for these financed plans to minimize outside collateral needs and maximize returns.
This allows individuals and businesses to leverage current assets, maximizing returns via a predetermined cash flow.
Every premium financing strategy is custom-made, with every strategy following a similar path: