What are Life Settlements?
Am I eligible?
What Options Do I Have?
Is It Right For Me?
Why Should I Consider It?
How Much Can I Make?
Are There Tax Issues?
What Is The Process?
What Should I Prepare?
What Should I Look For?
How Do I Start?
Where Can I Learn More?
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Life Settlement Funds
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Examples of how a Life Settlement can help you
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Saturday March 22, 2008 12:00AM | Click here to visit original article.
A must-have tool for all financial planners, CPAs and Estate Attorneys- Life Settlements.
The competitive secondary market for insurance policies has created a new tool to help estate planners with clients whose estate needs have changed. Life settlements, the act of selling unwanted insurance policies through a bidding process to 3rd party buyers, have Estate planners and tax attorneys jumping for joy.
The act of life settling should be considered if your clients meet the following requirements
- The insured's estate tax burden has decreased and thus the insured's beneficiaries no longer need liquidity to pay estate taxes
- The insured's estate size has greatly diminished
- An estate tax law change has negated the need for the policy
- General estate planning goals have changed
- The insured's beneficiaries are no longer alive
- The insured does not have the liquidity to meet premium payments anymore
Joe Schmoe, 70, a multi-millionaire who took out a $3 million policy when he was 40 years old is the perfect candidate to life settle. Joe's estate planning needs has changed dramatically since he first took out the policy 30 some odd years ago. Joe's spouse, his lone beneficiary, has just recently passed away. Joe, ever the philanthropist, wants to donate most of his estate to charity.
In order for Joe to maximize his donations, he consulted against his tax attorney and decided to sell his life insurance policy through a life settlement. By going through this transaction, Joe not only increased his liquidity by not having to pay his premiums, but he also received $1 million by selling his unwanted policy. Joe can now add this extra cash he received to his donation fund.
A question every financial planner has to ask themselves when following up with clients is: does the client have the same esate planning needs as before? If so, life settlements could be a viable tool.
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68 Year Old Male
$600,000 Universal Life
$29,845 Surrender Value
Paid: $94,000
44 Year Old Female
$300,000 Term Life
$0 Surrender Value
Paid: $225,000
65 Year Old Female
$15,000,000 Universal Life
$332,270 Surrender Value
Paid: $1,078,000
PolicyOptions Acquires Golden Gateway's Life Settlement Business - The Life Settlements Wire
29 July 2010, 1:08 am
Life settlements are DOA as an investment - MarketWatch
28 July 2010, 9:01 pm
Life Partners to Hold Annual Shareholders' Meeting - MarketWatch (press release)
28 July 2010, 1:07 pm
PolicyOptions Acquires Life Settlement Division of Golden Gateway Financial, Inc. - PR Web (press release)
28 July 2010, 8:19 am
Oxford Life Unveils New Medicare Supplement Insurance Plans - PR Newswire (press release)
28 July 2010, 5:02 am
Head Announces Retirement from LISA at End of Year - The Life Settlements Wire
28 July 2010, 1:03 am
Absolute Life Settlements Starts Business, Buys $10M in Policies - The Life Settlements Wire
28 July 2010, 1:03 am
States pitted against federal regulators over life settlements - InvestmentNews
26 July 2010, 2:03 pm
Congress Should Define Life Settlements as Securities, SEC Report Says - The Life Settlements Wire
23 July 2010, 1:19 am
Life Settlements in U.S. May Have High Fees, Lack Transparency, GAO Says - Bloomberg
21 July 2010, 9:34 pm
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