Presented by Gary Peterson
If given the choice, to whom would your clients want to leave their money:
1. Loved Ones
3. The Government
With your assistance, your clients could potentially leave all of their money to all other than the government. Use the RMD from their IRA or qualified plan to purchase life insurance that will pay the taxes to Uncle Sam and leave their assets for their kids or charity.
Here is a hypothetical example:
Client has a $500,000 IRA. Upon death, taxes and costs could amount to $200,000. Purchase a Survivorship life insurance policy for $200,000 with the RMD. The children can use the benefit to pay the taxes and have the $500,000 to liquidate to continue tax deferral as long as possible.
Better yet, use the RMD and purchase a $500,000 policy and make the beneficiary of the IRA a charity. If done properly, all of the funds ($1 Million) would be received income tax free.
Contact your life marketer at 800-397-9999 for more details.