Wealth Transfer

Treat the earth well, it was not given to you by your parents; it was loaned to you by your children.

- Crazy Horse, Oglala Lakota

Stella wants to do a wealth transfer to here children, but she wants to make sure it is done correctly.

She has $400,000 in savings at the bank - another $250,000 in a stock portfolio, she inherited from her husband and about $80,000 in yearly cash flow.

Stella adds about $40,000 yearly to her bank account. She decided that she would like to divvy the cash up amongst her three children and give them the money now.

All three children are reasonably successful people in their own right and all three said.

“No Mom you keep the money. You may need it.”

Stella is very sharp and determined. She wasn’t going to let the money just pile up at the bank, when her kids should have it. She would implement a wealth management strategy.

She sold her stock portfolio and bought segregated funds for the death benefit guarantee. Stella had no interest in overseeing a stock portfolio.

Stella had all three children apply for and get a Universal Life insurance policy. She is the owner and beneficiary of the policies and she controls every dime inside.

She is putting her wealth into each policy because she is the owner of the policy she maintains control of her cash. If she needs it, she has total access to her money.

If God forbid one or all of the kids passed away, Stella as beneficiary of the policies would receive the life insurance plus the accumulated value of the account as a tax-free death benefit.

This would give Stella the cash she want to be able to help her children's families in the event of a tragedy.

Stella has made all three children subsequent owners of their policies. When Stella passes on the children will take ownership of their policy.

When this happens there is no probate, no fees, no tax.

Stella is giving her children the money, while keeping it. It’s growing tax sheltered, and she never relinquishing control of it, while she is alive. No creditor can take it, the tax man can’t touch it.

Upon Stella passing:

• what happens with this cash is completely private, know only to the parties involved
• The cash bypasses estate issues, (Probate) and taxation

Once the children take over ownership of the policies the money inside is theirs to do with as they see fit and none of Stella's creditor can go after it.

They can continue on with the policy and upon their retirement employ the “Insured Retirement Strategy” and have a tax free income for the rest of their lives.

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