Estate Planning Secrets: Leveraging Life Insurance for Generational Wealth Transfer

Planning Reimagined

How do high-networth families use life insurance as a wealth-building tool?

In this episode of Planning Reimagined, we continue the series of the family office and welcome Jay Judas to discuss the intricacies of using life insurance in estate planning for affluent families. This discussion covers the strategic implementation of irrevocable trusts to fund life insurance policies, highlighting the substantial gifting limits available for married couples. They explore the versatility of life insurance, especially Private Placement Life Insurance (PPLI), to offer tax-efficient solutions tailored for high net-worth individuals and families. They share various examples, stressing the importance of comprehensive planning, professional management, and the necessity of not viewing life insurance as a one-size-fits-all product.

They also talk about how life insurance provides liquidity, ensures harmony within family businesses, and supports generational wealth transfers. The conversation also touches on premium financing as a means to enhance cash flow, the potential of life insurance as a stable asset class, and the importance of avoiding common pitfalls like investor control issues with private placement policies.

To connect with Jay, visit: https://www.lifeinsurancestrategiesgroup.com/

To schedule an appt, visit: www.calendly.com/ccmoya

To learn more about Robin Glen, visit: https://www.robinglen.com/

Key Topics Discussed:

• Advantages of using irrevocable trusts to fund life insurance policies
• Gifting limits for funding life insurance in trusts
• Premium financing options for maximizing cash flow
• Overview of Private Placement Life Insurance (PPLI)
• Importance of estate planning, financial planning, and tax planning
• Tax-efficiency and stability of life insurance as an asset class
• Role of life insurance in liquidity and generational wealth transfer
• Case studies illustrating comprehensive planning before determining life insurance needs
• Avoiding investor control issues in private placement policies