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Creating a Family Legacy with Life Insurance
John Bledsoe
940-455-7006
Current Law 2006 Exclusion Equivalent is $2,000,000 2007 Exclusion Equivalent is $2,000,000 2008 Exclusion Equivalent is $2,000,000 2009 Exclusion Equivalent is $3,500,000 2010 Exclusion Equivalent is $Unlimited 2011 and beyond Exclusion Equivalent is
$1,000,000
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Millionaire Next Door
Invisible
Everywhere
They need us
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Perfect Estate Plan
Motivation of Having Wealth
Control
Access
Default Beneficiaries
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Target Market Advanced Planning
Age
Net Worth
Family
Types of Assets
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Logical Progression
Living Trust Plan
Double Exclusion for married couples
Irrevocable Trust
Call it an ILIT at your peril
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Irrevocable Trust
Annual exclusion gifts (currently unused) Explain Crummy Expanded “Crummies” (without dummies) Friendly trustee with broad powers Main trustee ingredient First question they will ask No Brainer to maximize funding every year
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Asset Allocation of Irrevocable Trust
What assets are being transferred Cash is common Life Insurance as the custom built investment Not Protection Compare to bond yield IRR on death
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Life Insurance Examples
Term Permanent Single Life or Survivorship BOCA (not Raton) Guaranteed products It’s a tax play all right…income tax
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Benefits of Life Insurance
Death benefit
Premium notices
Income tax treatment
Rate of return
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What happens if estate tax is repealed longer term?
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Action Steps Identify Prospective Clients Show Prospects the Merits of Annual Transfers Draft Irrevocable "Gifting Trust" Underwrite for Life Insurance if Appropriate Transfer Annual Maximum to New Trust Rinse and Repeat
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