Innovative financial advisors are always thinking about how they can help clients hang onto their assets and keep Uncle Sam’s grasping hand out of their pockets.
The latest innovation is bespoke life insurance strategies that function as “family banks” outside estates. These strategies help ultra-high net worth clients spend more money now, build a legacy and disinherit the IRS.
The key is private placement life insurance in which the policyholder controls the investment component and enjoys significant tax savings. It really starts by looking at insurance as an asset class that offers a predictable return. By building in these accounts for the next generation, clients can spend more while they’re alive to enjoy their money. It’s like having your cake and eating it too. By managing the investment component, the value can grow to much more than the actual underlying insurance.
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Using Insurance to Help Wealthy Clients ‘Disinherit the IRS’ | ThinkAdvisor