With the 2017 tax reform, there were a few items that could have drastically changed estate planning strategies for the affluent individual. But, let’s keep a few things in mind: The bill passed with zero Democrat support. When Democrats get back the majority, they are likely to do whatever is in their power to dismantle… Read more »
In the game of Monopoly (™), the person with the most properties in the end usually wins. In real life, having the most properties in the end could also mean paying the most in taxes. Let’s take a look at how to maximize your investments in real estate while minimizing your taxes. Catch 22 Investment… Read more »
Let’s walk through how someone could amass millions more through Private Placement Life Insurance (PPLI) than through most other investment vehicles. For a definition, benefits and other considerations for PPLI, read our blog, “Why You’ll Never View Life Insurance The Same Way Again”. Let’s say John reads an article, and realizes that for PPLI, funds… Read more »
In 2016, the University of Michigan and Jim Harbaugh came to an agreement in which Michigan would loan Harbaugh $14 million over the course of several years to pay his insurance premiums. He doesn’t need to repay the loan until he dies, at which point the death benefit will cover the loan, and remaining funds will… Read more »
What Annuity Problem? Let’s use an example to explain. Clara and Thomas have conservatively purchased a fixed annuity with a flat rate of return. Over the years, they have watched their initial investment of $2 million grow to a sizable $5 million. A fixed annuity is tax-deferred, and the principal and interest are guaranteed. Sounds… Read more »
The recent tax reform has left some people wondering whether estate planning is still necessary. It is (we discuss this in detail here). If you die after 2026, the estate tax exemption goes back to 2017 limits (around $5 million or so). Above that, your children will see 40% of your wealth go to the federal… Read more »
What if you could make a significant difference for a cause that you really care about, without reducing your assets (or those of the next generation)? What if you could actually give money away and save money at the same time? Well, if you qualify for more permanent life insurance than you need, you can.… Read more »
What better way to show your love than to make sure that you have an estate plan that covers and protects your spouse, while at the same time maximizing wealth transfer to your children (and grandchildren)? Protection can come in the form of reducing the taxes that will be owed on your estate, or reducing… Read more »
When It is Time to Trash a Policy It was worthless. Well at least that is what Mr. Greene* said. He had obtained a life insurance policy as part of his compensation package while at his previous firm. The $5 million death benefit was meant to insure his salary (for his wife’s benefit), and the… Read more »
While we may or may not agree with President Donald Trump’s policies, the recent tax reform does allow for an increase of wealth transfer to the next generation for the next 8 years. The estate tax exemption limit has increased from around $5 million to about $11.2 million (the IRS website notes that the adjustment… Read more »
