Try this great wealth transfer strategy

Conventional wisdom dictates that you protect your loved ones against unforeseen financial stress such as your unexpected passing. This works great during your income earning years when you want to protect your spouse and children should something happen to you.

But what if you are already enjoying financial security and want to help your grandchildren get an early start by incorporating a great wealth transfer strategy?

My 69-year-old clients Cindy and Paul have an 11-year-old grandson, Jackson. Paul and Jackson are very close and share a love of sport fishing which they try do do as much as possible. They want to ensure he has financial means for a downpayment on a home or even start the outdoor fishing supply business he talks about. I explained that by purchasing a Permanent Participating Life insurance policy now on the life of their grandchild and transferring it to Jackson when he is at age of majority, it becomes a great intergenerational wealth transfer strategy.

My clients will also benefit by this wealth transfer strategy:

1. Transfer of the policy is done on a tax-deferred basis. 2. Funds withdrawn by the adult grandchild, if taxable, are taxed in the hands of the grandchild 3. It provides a lower cost permanent life insurance for Jackson with no premiums. 4. A 10-pay premium payment option allows the policy to be fully paid up prior to transfer.

Since the premiums are based on issue age, purchasing a life Insurance policy when Jackson is a minor provides him with low-cost permanent life insurance. As owner, Jackson can access the accumulated funds through a policy loan or by surrendering all or part of the policy to help fund his financial goals.

This is a win-win strategy for Cindy and Paul who are looking to pass on their inheritance tax-efficiently! Check out this video to learn more.

Contact me today to see if this strategy works for your family.