Why Should Affluent Retirees Consider Whole Life? 2 Reasons.

Affluent Retiree

1. Estate Planning

Issue/Concern: Federal Estate Taxes, State Estate and/or Inheritance Taxes, Probate Fees, are just some of the expenses to be paid by your estate. Other issues such as a fair and equitable distribution of assets to heirs, and maximizing distributions for grandchildren may also be top of mind issues.

Whole Life Insurance as a Strategy: Properly owned outside of your estate, whole life insurance and second-to-die whole life tend to be much more cost effective vehicles for paying estate taxes, probate fees, and other costs associated with the transfer of assets, than taking loans or selling assets.

2. Charitable and Legacy Planning

Issue/Concern: I don't want to make my kids rich, but how can I keep them from becoming poor? How can I maximize my charitable intent? My charitable organization probably relies on my contributions… how can I perpetuate my donations?

Whole Life Insurance as a Strategy: Whole life is also a simple way to gift to your children. Rather than gift outright without any protection, gifting into a whole life contract inside a trust, can provide your donees with protection from creditors, mismanagement, divorce and future levels of estate taxation. If your plan is to 'spend it all' and pay no estate taxes, then whole life insurance can be that guaranteed legacy payment to heirs. You may also be philanthropic with your assets. Whole life provides leverage to increase gifts in a controlled fashion without sacrificing current charitable tax deductions on Schedule A of the 1040.

This publication is offered for the purposes of education and information only and should not be considered tax or legal advice. For more information on your specific situation, please consult your legal or tax advisor. Neither Guardian, nor its subsidiaries, agents, or employees provide tax or legal advice.