Planning solution for older, affluent clients who want to help positively impact the financial security of their children and grandchildren. This is done by transferring taxable assets (such as IRA assets) to a tax free retirement income solution without having to pay any taxes out of pocket on the IRA withdrawals.
This concept involves Generation 1 (Grandparents) who purchase permanent life insurance on Generation 2 (Adult Children) that can ultimately benefit all Generations with an increased focus on Generation 3 (Grandchildren).
This solution provides a source of tax-free income for Generation 1 and Generation 2, while also providing a source of funds to be passed along tax free to their heirs at death.
This planning strategy allows you to work with older affluent clients who may not be able to obtain life insurance on their own lives. It also provides you with the opportunity to build a relationship with their adult children, opening the door to another generation of clients.