Strategic Credit Solutions
High Net Worth and Ultra High Net Worth individuals often use the death benefit from a Life Insurance Policy as a means of wealth replacement. Replacement for the value of their estate that is expected to be used to settle their estate tax liability. In essence, making the client's heirs "whole."
These policies are typically owned by an Irrevocable Life Insurance Trust (ILIT) that is considered “remote” from and whose assets are not included in the individual’s estate.
The source of the funds used to pay the insurance policy premiums can have wide spread implications on the individual’s effort to continue accumulating wealth during the remainder of his/her lifetime as well as their potential for preservation of wealth already accumulated.
More often than not, the ILIT that holds the policy will not have the resources itself to fund the premiums creating a "cost of transaction" dilemma for the insured. This is where strategic credit advice from the insured's advisor can make a real difference.
In this document I suggest that the use of “Strategic Credit Facility” (click on highlight and download) should be considered as a potential funding source. I discuss a suggested structure for this type of facility and the potential client benefit of its use. In many cases the individual will gain significant and Quantifiable Economic Benefit (QEB).
The blog topics I cover here are parts of an one or two day course on HNW Client Credit Opportunity Discovery available to Bank Private Wealth/Banking groups and Family Offices and RIA shops. If you'd like a full course syllabus please let me know.
I welcome your "likes" and comments. They are most appreciated. Don't hesitate to contact me if you would like to discuss this or any of my other Strategic Credit Solutions in more detail.
404.909.5167, mark.johnson@strategiccreditsolutions.com
These policies are typically owned by an Irrevocable Life Insurance Trust (ILIT) that is considered “remote” from and whose assets are not included in the individual’s estate.
The source of the funds used to pay the insurance policy premiums can have wide spread implications on the individual’s effort to continue accumulating wealth during the remainder of his/her lifetime as well as their potential for preservation of wealth already accumulated.
More often than not, the ILIT that holds the policy will not have the resources itself to fund the premiums creating a "cost of transaction" dilemma for the insured. This is where strategic credit advice from the insured's advisor can make a real difference.
In this document I suggest that the use of “Strategic Credit Facility” (click on highlight and download) should be considered as a potential funding source. I discuss a suggested structure for this type of facility and the potential client benefit of its use. In many cases the individual will gain significant and Quantifiable Economic Benefit (QEB).
The blog topics I cover here are parts of an one or two day course on HNW Client Credit Opportunity Discovery available to Bank Private Wealth/Banking groups and Family Offices and RIA shops. If you'd like a full course syllabus please let me know.
I welcome your "likes" and comments. They are most appreciated. Don't hesitate to contact me if you would like to discuss this or any of my other Strategic Credit Solutions in more detail.
404.909.5167, mark.johnson@strategiccreditsolutions.com
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