Estate Liquidity Strategy to Preserve Assets

A family owned precious assets that they didn’t want to sell to cover a sizable estate tax bill. Life insurance provided a liquid source of readily available funds to pay the estate tax bill. However, the family did not want to pay premiums out-of-pocket with after tax dollars and trigger gift taxes.

Solution:

We designed a premium finance solution that:

• Eliminated the out-of-pocket expense

• Created an opportunity to keep valuable assets on their balance sheet earning a return

• Protected the family from creditors, eliminated gift taxes and generated a large income tax deduction in the year it was implemented.

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