Does your estate plan include transferring your wealth onto your family? Have you looked over potential tax implications? It’s important to understand that your beneficiaries may be in for sticker shock when they receive a tax bill along with your generous gift. If you’re looking for ways to keep your financial legacy away from Uncle Sam, you might consider life insurance.
Tax Efficiency. The proceeds from life insurance are free of income tax. For example, if your death benefit is $5 million, your heirs will receive the total $5 million. The only situation in which tax may be due on life insurance proceeds is when you remain exposed to the estate tax. The problem can be solved if you properly use a life insurance trust.
Market Guarantees. Sure, investing is exciting, but it’s loaded with risk. Life insurance removes most of the risk by offering fixed returns. If you’re craving more significant upside potential, talk to your financial professional about insurance products, such as indexed universal life, that provide a fixed return plus the possibility of additional credits through exposure to a linked market index.
Leverage. No one can precisely calculate the return on a life insurance policy until the insured dies; however, you can know exactly what your heirs will receive. Even for those who live past life expectancy, the return — especially when factoring in the tax-free nature of it — is most likely going to beat the alternatives.
Business Succession. If you own a business, it can be tricky to leave money to your heirs since much of it is tied up in business expenses. Plus, it’s natural to want your beneficiaries to receive equal amounts even if not everyone takes over the family business. To jump through these hurdles, you can use life insurance to create liquidity and partially fund the inheritance for any child not taking on a business role.
When it comes to wealth accumulation and succession, the decisions you make will determine how much everyone receives. Call us today at (540) 720-5656, and let’s set up your investments the best way possible.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.