Wealth Transfer: Leaving a Legacy Give Clients a Wealth Transfer Solution They Don’t Know They Need
When Federal Estate Taxes Are Triggered
Indexed for inflation, in 2019, if a client’s assets total more than $11.4 million ($22.8 million if married), more advanced estate preparation is generally necessary. (Note: This is scheduled to reduce to $5.7 million ($11.4 million if married) indexed for inflation, after 2025.) Without proper preparation, estate taxes could take up 40% of his or her estate. An effective strategy put into place now can help eliminate surprises.
Key Thought: An Irrevocable Life Insurance Trust (ILIT) Can Help Preserve an Estate
With an ILIT, a grantor gives up all rights in the assets that are transferred to the trust. The grantor cannot revoke, terminate, or modify the trust in any material way. In turn, the life insurance death benefit will not be included in the grantor's estate and will not be subject to federal estate taxes, preserving more of a client's assets for his or her heirs.
Advanced Strategies for Enhancing Wealth Transfer
Wealth transfer can include implementing complex strategies, including trusts, that take advantage of the unique benefits that only life insurance can provide. When you work with Prudential, we’ll help you to confidently collaborate with clients’ professional legal and tax advisors to examine the viability of strategies such as:
- Generating income, plus a death benefit for heirs
- Making available the money needed to pay federal or state estate taxes
- Ensuring an equitable distribution to heirs
- Providing lifetime care for a dependent with special needs
- Protecting business interests
We do not provide tax, accounting, or legal advice. Clients should consult their own independent advisors as to any tax, accounting, or legal statements made herein.
Created Exclusively for Financial Professionals. Not for Use with Consumers.
For Compliance Use Only: 1016717-00002-00 Ed. 10/2020