Wealth Transfer

Life insurance and annuities can ensure the worry-free wealth transfer for your clients. Low-cost, no-load solutions, designed for fee-only fiduciaries, can improve outcomes by lowering internal costs and the cost of insurance. Over the next 30 to 40 years, as an estimated $30 trillion in assets pass from Baby Boomers to their heirs (source: Accenture), advisors need strategies for helping current clients with legacy planning, and serving the next generation of wealth.

Client Scenario

Tax-Free Transfer of Wealth

Leveraging low-cost, no-load VULs is a great way to transfer wealth to heirs tax free. This new generation of VULs were engineered without commissions which, in turn, lowers the cost of insurance. So more of your clients’ premiums can contribute to the face value or cash value of the policy. Either way, more of your clients’ dollars are promised to go to work for them, not an insurance company. And for shorter-term needs, tax-free distributions can be taken in the form of loans to meet more immediate needs in retirement. Learn how Resa’s financial planner advised her to use a VUL to provide for her son.

Resa

Resa

Resa’s advisor recommended that she consider a no-load VUL policy rather than traditional term policy to provide for her son in the event of her untimely death. Click to learn how a VUL fit her plan.

Risks Addressed

Tax Drag
Olivia

Olivia

When Olivia inherited her mother’s non-qualified annuity she learned she had four options to receive the inheritance. Learn how she spread the tax burden out over time, and allowed the money to stay invested.

Client Scenario

Generational Wealth Planning

$42 trillion is slated to pass to succeeding generations from the Greatest Generation and Baby Boomers over the next thirty to forty years. In the 15-year period beginning 2031, A staggering 10 percent of total wealth in the US will change hands every five years. Creating lifetime income streams by ‘stretching’ annuity payments to beneficiaries over their lifetimes can minimize the impact of taxes on your clients’ heirs, and help you retain them as clients. These products are built to avoid probate, and ease the transition of wealth from generation to generation. Read how Olivia spread the tax burden of an inherited annuity out over years via the non-qualified stretch provision.

Risks Addressed

Tax Drag
Client Scenario

Charitable Giving

To simplify the planning of charitable gifts in estates, investors may simply name a charitable organization as a beneficiary on an annuity policy. That money is then easily passed, tax free, to the named 501(c)3 organization. The assets avoid probate, are non-taxable, and this can eliminate the need for costly and complex trust structures. Learn how Virginia and Stratton simplified their charitable giving with a variable annuity.

Virginia and Stratton

Virginia and Stratton

Virginia and Stratton needed a simple solution for making a gift from their estate. Click to learn how an annuity simplified their plans.

Risks Addressed

Tax Drag

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