Capital Transfer - Super Charge Your Legacy…

Monday, February 13, 2012
Written By Kent Richardson

Let’s assume that you have been really lucky in life and have amassed a considerable amount of assets. You look at what you’ll need to live on in retirement and decide that the rest you would like to leave to your heirs, children, grandchildren, etc. Maybe it’s in the form of an IRA, 401k or just sitting in the bank in CD’s. We’ll call this never money, money that you have no plans for except to leave to heirs.

So let’s look at an example; Mr. and Mrs. Jones have saved wisely and taken advantage of their 401k plans at work and have accumulated quite a nice nest egg. They have also managed to put back $150,000 in CD’s that they have decided they really won’t need retirement and their sole purpose for this money is to leave to their two children.

Now Mr. and Mrs. Jones are both in their mid sixties and in relatively good health. They talk to their financial advisor and he suggest that since they have no plans for the $150,000 in the bank, that they look at taking that money and buying a single premium life insurance policy and make the children equal beneficiaries. So what have they accomplished?

They have taken what would be a taxable asset to their children of $150,000 and turned it into say a $300,000 non taxable asset. They have double (or more) the amount that the children would receive and guess what, life insurance proceeds are not taxable. They would get the money within a matter of a few weeks instead of waiting for what could be a year or more to go through probate. Saved legal fees, taxes and administration fees.

This could also be accomplished using retirement plans too. So I ask you, which is the better solution? Leave the children a non taxable legacy, with double the benefit, or leave it in the CD’s and wait for the probate courts to distribute the money and pay inheritance taxes?

If you have any questions about this subject or any other financial matters please give me a call at (270) 234-0757.

Advanced Wealth Strategies, LLC

Building, Protecting & Preserving Wealth

Charitable Giving with a Bang!

      We've all seen and heard examples of kind and giving people leaving money to their family church or a charity that they feel strongly about. Giving to charities is one of the most selfless acts that a person can do to help their community.

     Now, let’s take that same concept and put it on steroids. This is where an advisor can help. Example: Let’s say that you have $10,000 that you want to leave your family church. That's a great way to give back. But what if you could take the same $10,000 and turn it into say, $15k, $20k, $25k or even more, with no risk and no more than the original $10,000 to start?

     Wouldn't that be making your money work for you? Wouldn't that leave a much nicer legacy for you and your family? You bet it would! Plus, the best part is that your church would not have to wait until your estate was settled before getting the money you intended. It all goes to them within a few weeks and totally bypasses the probate process.

     Your church would be forever grateful, and all you did was use the same money and apply a little pre-planning to the process.

     Remember, CD's, stocks, bonds or property will have to go through the probate process and will hold up the transfer of the funds, sometimes as much as up to a year or more.    

      If you have any questions about this or any other ideas give Kent  a call at (270) 234-0757 and I'll be happy to help in any way!