Ever faced with an estate planning case that where Life Insurance would be the best resource to pay for a client’s estate taxes?
Have you had the same scenario, but the client was uninsurable?
When advisors are faced with an uninsurable they tend to walk away from the case; however, maybe you should be thinking outside the box!
Take the case of Mary. Mary is 75, and has had many health impairements. Mary has a combined estate of $50M, and is faced with a hefty estate tax bill should she pass.
Mary is someone that has never had the opportunity to get around to her estate planning, and neither did her husband. He has long since passed, and Mary has now become aware the the problem rests on her shoulders of what to do with the estate taxes, and decrease the tax burden for her children and grandchildren.
However, in this case, Mary has one last option left….She can borrow a life! That’s right! Borrow a Life! Some advisors have heard of this strategy, but not all of us, and I would like to resurface this powerful phrase and planning strategy.
Mary has 4 children and 10 grandchildren. But where are we going to get the Life to Borrow? The children are younger than her, and obviously the grandchildren don’t make sense. So where do we go? How about using another GRANDPARENT! That’s right! The benefit of having married children whose spouses might have healthy living parents leads to the opportunity of insuring another grandparent along with Mary in a Second-to-Die Life Insurance policy covering both grandparents.
If you have stumbled across a case like this in the past – why not revisit it!
Feel free to contact your Brokerage Manager with any questions!
