If you have been successful and built a large estate, when you pass away, Uncle Sam comes calling (again).
One can argue over whether or not this is fair, but as it stands today, you are only able to pass so much to the next generation without paying the federal estate tax of 40% on your includable assets. In most cases, to add injury to insult, the tax is due within nine months of your passing.
Some advisors argue that if you have a large estate, you have the assets to pay Uncle Sam. I would ask you to consider: Why give up a dollar of the asset or full value, which you may or may not have had to pay tax on, and potentially lose future earnings power of that dollar? To maximize the passing of accumulated wealth from generation to generation, we help clients understand and implement a tax-efficient life insurance strategy. If structured properly, life insurance provides tax-free dollars or discounted “pennies for dollars” to pay Uncle Sam.
Should you consider leveraging the tax-free benefits of life insurance to plan for a future federal estate tax?
If you have questions or would like more information, please contact us, we look forward to your call.
Mark joined Rose Street in 2017 and helps clients with their estate, business succession, and family/business planning through the use of life insurance products.
He loves golf, skiing, hiking, and reading. Fun fact: Mark has both played and coached tennis at the collegiate level.
This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual or entity. To determine what is appropriate for you, please contact your Rose Street Financial Professional. Information obtained from third-party sources are believed to be reliable but not guaranteed.
Securities and Investment Advisory: Services offered through M Holdings Securities, Inc., A Registered Broker/Dealer and Investment Advisor, member FINRA/SIPC. Rose Street Advisors is independently owned and operated. Rose Street Advisors is a member firm of M Financial Group. #5642836.1