Why an Estate Bond?
As people become older, there typically comes a point in time when the realization strikes that they are not going to spend everything and their remaining assets represent their estate. When peaking of an estate, the first thing that comes to mind is "How can it be transferred to my heirs in the most tax efficient method?" As discussed in other sections of the site, there are many options and generally some combination of these options becomes the solution for you.
Would you like to give more to your family and less to the government?
Here's the problem …
Like many of us, your financial plan may include an element of savings that you never plan to spend. You have invested some money that you intend to pass on to those you care about most.
The problem is this strategy's success is largely based on the investment's rate of return. And, unfortunately, the higher the return, the more tax you pay. This means your estate may end up smaller than you're anticipating.
What are your options?
You can continue to pay tax on the income earned from your savings or you can invest the funds using a financial planning strategy known as Estate Bond.
This attractive alternative to taxable investments offers:
• a large, immediate estate value
• tax-sheltered growth of cash values
• a tax-free maturity value at death
• reduced estate settlement costs, if you've named a beneficiary
• potential for creditor protection, if you've made an appropriate beneficiary designation
• liquidity, if you require it.
The Estate Bond solution …
The Estate Bond moves savings from a tax-exposed investment to an exempt life insurance policy. When you die, your heirs receive the proceeds tax-free.
When you take advantage of the Estate Bond financial planning strategy, you not only increase the size of your estate, you also reduce the amount of tax you pay.
