The Family Bank can be created by anyone who wants to leave a legacy for those people and those things one cares about. The concept is simple:
- assets can be loaned or gifted to a trust
- trust assets can be used for the lifetime needs of trust beneficiaries like children, grandchildren as well as for the spouse if special Spousal Lifetime Access Trust provisions are included (SLAT)
- using a properly structure combination of life insurance policies owned by the trust, tax deferred growth of cash values can be obtained
- at the client’s death, the Family Bank then receives the death benefit owned by the trust on an income and estate tax free basis
- the after income and estate tax rate of return on invested capital that would have been necessary to create the same capital as the Family Bank’s death benefit is quite a hurdle
Today more than ever, clients seem unwilling to ‘give up’ or ‘gift away’ assets due to the uncertainty in the world and low interest rate environment. So if you want to capitalize on this exciting marketplace, you’ll need the technical knowledge and PowerPoint tools to make your points to motivate clients to take action.
Learn more by contacting us at 949.544.2500