Advanced Retirement Solutions

There is a an old eastern saying which makes a great point of seeing beyond surface:

"It is not what we are looking at but what we are not seeing, that affects our understanding or not knowing".

Over the years, through careful listening to various clients while assisting them with their mature age planning, I have found out that it is better to loose a possible sale, than not placing advance planning options and tools in front of consumer / client who are always looking at planning from their consumer eyes and not of that of an Advisor / Professional.

Here is an idea which can be used by a Retirement Planning Professional for clients who like to maximize in leaving legacy for their loved ones.

This is ideal for clients with moderate to high net worth, who purchased and accumulated significant annuity assets which they will not be needing to maintain their lifestyle during retirement. These assets have now been earmarked to pass to their beneficiaries. With the assistance of their financial professional, these clients will be able to protect their beneficiaries' interest in a way that these assets will not be eroded by income and estate taxes.

The Solution Annuity Funded Life Insurance:

Step 1: Withdraw funds from annuity and pay applicable income taxes. (Withdrawal options should be considered carefully with professionals prior to implementation).

Step 2: Establish an irrevocable trust with the desired provisions and make gifts to fund the trust.

Step 3: The trustee uses the gifts to pay premiums on a life insurance policy. The trust is owner and beneficiary of the policy.

Step 4: Upon the death of the insured, the policy's death benefit is paid to the trust income and estate tax free (less any outstanding loans). The remaining annuity death benefit is paid directly to the annuity beneficiaries.

Step 5: The trust distributes the policy death benefit, and any other trust assets, to the trust beneficiaries according to the trust's terms. Withdraw funds and pay applicable income taxes.

Please note: This document is designed to provide introductory information on the subject matter. I do not provide tax and legal advice. Advisor should consult Tax and Legal Advisor and suggest clients to do so prior to engaging in this important work. Besides current legal Counsel available, this PPO Legal Access Plan, which have many preventive legal services built in for consumers for last 45 years, may be considered to shed light on this and other important day to day matters: www.aimbest.com