It has been said that charity begins at home, but should not end there. Never has this been more true than when you give your estate away twice: once for the benefit of your cherished loved ones, and once for your favorite charity.
The idea of giving away twice the value of your estate is the perfect example of how the Howard Kaye Insurance Agency uses some of the most innovative approaches to maximize your wealth. By viewing estate planning as a way to leave the most possible money to your family and charity, rather than reducing your assets to pay the least income and estate taxes, you can effectively quadruple what you leave behind.
This is the story of 72-year old man and his 67-year old wife who were able to enjoy retirement after watching their hard-earned $10 million turn into $20 million, rather than being reduced to $5 million after estate taxes.
By setting up an irrevocable life insurance trust, both husband and wife were entitled to an exemption, allowing each to transfer $1 million as a tax-free gift. Using that $2 million, the irrevocable life insurance trust purchased a $10 million second-to-die life insurance policy. When both spouses have passed, the trust will receive the proceeds of that $10 million insurance policy, guaranteeing their family a tax-free inheritance. Even if the policy lapses or is surrendered before a death benefit is paid out, the policy owner receives the benefit of financial protection from a mortality event occurring during the time the policy was in force.
Meanwhile, the $8 million remaining in their estate may grow back to $10 million over time, and upon their demise the estate is left to either a foundation they have established or a favorite charitable organization. In this manner, their fortune is not subject to estate tax costs.
Our goal is simple: call us so we can help you give 100% of your assets to your family and 100% to charity.
For illustrative purposes only. Actual results will vary based upon individual circumstances.
Howard Kaye Insurance Agency, LLC does not provide tax or legal advice. Clients should consult their own tax and legal professionals.
Guaranteed payment of life insurance proceeds are based upon the claims paying ability of the insurance carrier and making the required premium payments until the death benefit is paid.
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