ESTATE PLANNING Trust Revitalization

Trust Revitalization is designed for wealthy families whose legacy trusts have become diluted by an increasing number of family members. This strategy replenishes trusts assets, so that the funds are not exhausted.

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Trust Revitalization

With Trust Revitalization, life insurance is obtained on some or all the beneficiaries of the trust. To minimize the impact on trust funds the policies are financed, and where possible, the loan interest is capitalized. The cash value of the policies secures the loan, and some of the trust assets are used as supporting collateral if necessary. By structuring the transaction this way, trust assets are not liquidated and earnings on trust assets are not lost. Trust liability is limited to the outside collateral and not the entire loan. The death benefits and tax free policy loans are used to create additional returns on trust assets. This design boosts the returns of trust assets without disturbing asset allocations.

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Estate Planning Comparisons

Life Strategies gives individuals a way to finance life insurance premiums. Covering future estate taxes by allowing the client to pledge collateral instead of paying premiums.

Strategy Name Life Strategies Multi-Gen Premium Finance Rescue Trust Revitalization
Qualifications
  • Your net worth is greater than $10M.
  • You are below the age of 70.
  • You are in good health.
  • You need insurance needed to cover estate tax.
  • You have the ability to pledge collateral.
  • Qualification
  • You have a net worth greater that $25m.
  • You have been rated or determined uninsurable.
  • You are able to obtain insurance on your children or grandchildren who are in good health.
  • You have children or grandchildren that have estate tax exposure.
  • You have the ability to pledge collateral.
  • You have a badly performing premium finance solution.
Benefits For You
  • You keep control of your assets. Assets can grow with minimal opportunity cost.
  • Reduces or eliminates gift taxes.
  • Significantly more effective than paying premiums.
  • Stress tested against the harshest economic conditions.
  • Protects your estate plan over multiple generations.
  • You maintain control of your assets and earnings.
  • Using financing has the potential to reduce your taxable estate.
  • Preservation of financial benefits.
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