Over 52 million baby boomers are nearing retirement. Many don’t have a plan in place for passing on their assets. We offer options that can help with wealth transfer strategies.
Watch the video below for an example of how a life insurance policy from Nationwide with a long-term care rider may be more efficient in helping you make your worth more worthwhile than a certificate of deposit would.
You've worked hard to accumulate wealth. As you contemplate passing it on to the next generation, keep in mind there's someone who wants his cut – Uncle Sam.
The good news is that life insurance can help. You can use your policy to pass your legacy to the next generation, and your beneficiaries don't have to pay income tax on the money they receive. So, if you buy a policy with a $250,000 death benefit, your heirs will actually get $250,000. Sounds like a good deal, right?
But what if you're in this situation: you've accumulated so much wealth that you're facing estate taxes? Life insurance can help with this too, by offsetting what you may owe so you can pass on all or most of your estate. Life insurance death benefits are paid income-tax-free to the beneficiary, although the proceeds are generally considered an asset of the estate for estate tax purposes. You should consult a competent estate planner or attorney to make sure life insurance ownership is structured properly to avoid being considered an asset of the estate. Keep in mind that neither the company nor its representatives give legal or tax advice.
Talk to your insurance professional about using life insurance to maximize the amount of money you leave to your heirs.