The Estate Planning Process will often incorporate life insurance as an integral component of a successful plan. In general, it is advantageous to arrange the plan so that life insurance policies will be owned by an Irrevocable Life Insurance Trust (ILIT), thus allowing the death proceeds to avoid Federal Estate and State income taxation and also avoid those assets from being subject to Probate and other administrative expenses. With successful implementation, a life insurance program can be one of the most attractive ways to transfer substantial amounts of wealth to your family. The Affluence Group, LLC will work with your Estate Planning Attorney and other professional advisors, to ensure the best possible integration of life insurance into your Estate Plan.
Once it has been determined that life insurance can make sense for your Estate and Charitable Planning objectives, we will work with you to determine the most attractive way to pay premiums for the desired coverage. In many cases, our clients will make annual gifts to their ILIT, so that the Trustee has the necessary funds to pay the premiums for any insurance policies as they become due. Although you may have the cash flow required to properly fund the life insurance coverage, it may not be possible for you to make the annual gifts to your trust without facing adverse tax consequences, due to annual gifting limitations imposed by the Government.
Or, you may prefer to leave existing assets where they are, and not use those assets for life insurance premium payments. For example, you may prefer to retain your capital within your business entity, investment portfolio, real estate, or other asset classes. A properly designed Premium Financing Arrangement allows you to benefit from all the advantages life insurance has to offer, without the need for re-deployment of your assets to an insurance policy. It also allows you to acquire significant life insurance coverage without the disadvantages faced by Government limitations on annual or lifetime gifting.
The Affluence has the expertise and knowledge to allow us to architect and create unique premium financing solutions for our clients. We partner with many financial institutions in an effort to design cutting-edge, cost-effective arrangements. Our designs withstand the test of time, and address the shortcomings often found in premium financing plans implemented by other firms. We have strategies to address the risk of interest rate changes, and can often craft a solution delivering extraordinary benefits for our clients.
The Affluence Group, LLC works with many lending institutions, banking and other professionals, ready and willing to provide the necessary capital for your Premium Financing Arrangement. We will work with you and your advisors to obtain the most attractive terms and loan parameters, to tailor a Premium Financing Arrangement for your specific goals and objectives.