Hello;
There was a recent survey conducted to individuals over the age 90 in the USA. They were asked: Report 3 things they would of done differently if they were given the opportunity to relive their lives? One desire was: they reported their wish to do something that would live beyond them. They would do something to ensure their mortality.
The family wealth transfer strategy is ideal for parents who would like to start saving for their child's future or grandparents who would like to leave an inheritance for their grandchildren. With this strategy, you can build a legacy for your family, while maximizing the value of your financial gift.
What are the mechanics behind it?
- A parent or grandparent would acquire permanent life insurance on the life of their child or grandchild
- A parent or grandparent would be the owner of the plan
- By investing in permanent life insurance - you are providing your child or grandchild with a lifetime of protection
- Once the child or grandchild is old enough, the parent/grandparent can transfer the ownership to them (this can be done on a tax-free rollover basis - provided the child is at least 18 years of age)
- The child or grandchild can use the funds in any way they see fit - such as for education or to help purchase a property etc.
Benefits to the Grandparent or Parent who set it up
- The parent or grandparent maintains full control of the plan
- Setting this strategy up has lower set-up administration costs than other forms of wealth transfer
- You lock in the insurability of your child/grandchild's life
- While your gift grows, its tax-deferred. Withdrawals are taxed in the hands of your children/grandchildren after the policy ownership is transferred to them
- The plan and its fund value bypass the will and estate are therefore exempt from costly probate and other related estate costs
This strategy enables people to maximze and help share in their legacy.
If you require further infromation, please feel free to contact us.
Sincerely,
Mike Busby (22-Oct-2020)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MIKE BUSBY FOR THE BENEFIT OF MIKE BUSBY WHO IS A FINANCIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH FUNDEX INVESTMENTS INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF FUNDEX. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILITY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTERPRETATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITIATION TO BUY OR SELL ANY SECURITIES. MUTUAL FUNDS PROVIDED THROUGH FUNDEX INVESTMENTS INC.
