Quick Facts
Age: Husband (41), Wife (38)
Client goal: To protect their fast-growing estate against potential estate tax charges and provide for their young and growing family.
How the client was found: The client is a referral from a relationship with a wealth advisory firm.
Income / Net-Worth: $500,000 + Annual Income and $2,500,000 + Current Net Worth and Growing
Health: Both are in excellent health
Concept Presented
A highly successful neurosurgeon and his neurosurgeon wife with high incomes, low expenses, and a rapidly growing net worth are looking to maximize their gifting credits while their children are young and don’t need the money currently. The insurance premiums will be gifted into an ILIT every year. This will help to pay estate taxes as well as give an alternative asset class as part of a holistic asset allocation.
Problem(s) Solved
The client is worried about his exposure to estate taxes later in life and a need to come up with liquidity to pay those taxes. In addition, he feels like he has no safe alternative places to invest money, the insurance gives him a non-correlated asset with a strong, safe, tax-adjusted rate of return.
Key points we have spoken about:
Estate Taxes
Gifting Credits
Insurance Premiums
Qualified Plans
ILIT
Assets
Insuring the Children
Premium Finance
The client is very happy, we were able to get him the best rates and we held his hand through the process.
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