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BSMG Blog: Protecting the Future of Families and Businesses

Advanced Sales: Creating an Inherited IRA Legacy Plan

 

With the recovery of the equities markets after the economic downturn of 2008-2009, it is common for successful business owners, professionals, and other individuals to have more than $1,000,000 in their IRA account.

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IRC Section 1035 Exchanges Require Special Attention

Often a policy review of your client’s existing life insurance and annuity contracts will conclude that a more cost efficient contract with better guarantees and rates of return makes sense. This will cause a producer to seek a potential transfer of the existing cash values to a new contract via a tax free Section 1035 exchange.

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Family Limited Partnerships vs. Irrevocable Life Insurance Trusts


Which entity to own life insurance?

The popularity of the irrevocable life insurance trust (ILIT) is well documented. Billions of dollars have been gifted by estate owners to single life and survivorship life irrevocable trusts to help fund the payment of federal estate taxes. Yet, a number of disadvantages revolving around lack of flexibility and lack of control discourage the use of such trusts in certain situations. When estate owners realize an irrevocable trust cannot be changed, they sometimes decide to think about it. Or when estate owners realize they don't own the cash value of the policy and have no access to it for lifetime financial needs, they feel a loss of control.

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Linked Benefit Products Offer Great Section 1035 Exchange Options

IRC Section 1035 provides that exchanges into life insurance or annuity contracts with Long Term Care (LTC) riders will be income tax free because these riders are treated as  LTC contracts under IRC Section 7702B(e). These Section 1035 tax free exchange provisions positively impact so-called linked benefit life insurance-LTC products and linked benefit annuity-LTC products.

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10 Benefits of a Well Drafted Durable Power of Attorney Document

As people age into their 80s, with longer life expectancies, their mental capacity is often diminished. This declining capacity presents an interesting issue which can impact whether continued gifting of premiums to Irrevocable Life Insurance Trusts (ILITs) can take place. 

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5 Techniques to "Rescue" Your Client's Life Policy From an ILIT

Do your clients ever ask if there are options for transferring a policy out of an ILIT when the terms of the trust no longer meet their planning objectives? Review these 5 techniques to "rescue" their life insurance policy from an ILIT and be prepared with the answer!

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5 Steps to Transition to Advanced Markets

Are you ready to take your career to the next level and break into advanced markets?

With few hours in a day, it can be tempting to trade traditional and individual life insurance business sales for more advanced markets, where the bottom line is often notably increased and the cases more intricate. Why would you spend the same amount of time for a less prosperous and sometimes more routine result?

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Leverage Your Clients Tax Benefits by Using Grantor Trust Power of Substitution

Do you have any high net worth clients who have already gifted capital assets to their grantor irrevocable trust? If their trust has the typical power of substitution clause, they may be able to substitute cash for the capital asset.

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Distribution Options for Inherited Non-Qualified Annuities

Do you have clients who own annuities, who are in poor health or have recently passed away? If so, you may be wondering what the distribution options are for the beneficiary of the contract. This is a question that comes up frequently in the annuity world. 

In this article, we take a look at inherited non-qualified annuities for spouses, non-spouses and trusts.

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Understanding the Inherited IRA Legacy Plan

Have you encountered a client, maybe a successful business owner or professional, with more than $1,000,000 in their IRA account? Many of these IRA owners have multiple sources of income as they approach their retirement years. 

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