A special tax message If you are an attorney, a CPA, a life insurance professional, a family office wealth manager, or a fee-only financial planner.

If you are an attorney, a CPA, a life insurance professional, a family office wealth manager, or a fee-only financial planner, here is how you can help your affluent clients’ estate plans.

You know this fact about your affluent clients:

Estate taxes are inevitable.

As we know, the Government has sophisticated tax laws to work around tax shelters, LLCs, corporations, and even trusts. Tax laws constantly change, Congress changes the rules when they need more money, and creative solutions are subject to possible IRS challenges.

Even after current estate tax strategies such as gifts, gifts of discounted assets (family limited partnership interests), and charitable remainder trusts …

Eventually, some tax has to be paid by your clients.

Currently, the three most common choices are:

Option #1: Fire-sale some assets as the government wants a check within 9 months.

Liquidating assets has problems. Finding buyers, getting a fair price when buyers know the seller needs proceeds by an upcoming date, and of course, which assets in the estate should be sold.

Option #2: Life insurance sufficient to pay the inevitable tax bill.

This provides cash for the estate tax bill ... but there are problems with this option also.

1. The client must write huge premium checks.

2. The client would rather keep that insurance premium money for other investments.

3. The client would lose part of their unified credit by paying the insurance premiums.

Option #3: Life Insurance Premium Financing.

This provides cash for the estate tax bill, without the following problems:

1. Interest Rate Risks

2. Client must requalify with bank on a regular basis

3. Bank may decide not to renew the loan.

4. Personal Guarantee.

5. High Failure Rate.

6. In most instances, client must pay some premiums and interest. This will reduce the client’s unified credits.

For your affluent clients, there is a better solution.

Life Insurance Premium Funding – Unique Funding Source (Not with bank loans.)

If your client meets these minimum requirements, then let's talk.

• Healthy or have a healthy spouse.

• Under 70 years old.

• At least $500,000 annual income

• At least $10 million of assets.

Let me show you a better solution for handling your client's inevitable estate tax bill, without writing any checks.

I can answer your questions quickly by phone to save time.

Call me at: (847) 292-1800

Thomas Hansen

I am a CPA, tax attorney, Master of Science in Taxation, and have 23 years of experience with the IRS, including over 13 years as an Appeals Officer. (And yes, so many interesting stories.)

Since 1996, I have had a law practice providing estate planning, wills and trusts, handling IRS disputes, and tax planning in many complicated cases.

Full white paper available on request.