How topreservethefullvalueofyourestate


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How To Preserve The Full Value Of Your Estate

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How topreservethefullvalueofyourestate

  1. 1. “Preserving the Full Value of Your Estate for Your Heirs” Mark Huber, CFP, AuthorAccording to todays tax laws, when an individual transfers assets totheir children, a significant percentage of the assets could be subjectto substantial capital gains taxes, and all registered assets could betaxed as income.If there arent enough cash assets in the estate and the heirs donthave enough money to pay these taxes, these heirs may have toobtain the money by selling off assets or dipping into the estatesinvestment portfolio at a time when they may not realize full potentialmarket value.Theres a simple way to fund these future taxes and expenses, and doit in a way that costs only a fraction of what the taxes will be whenthey are due: © Copyright 2010 Mark Huber, CFP -1-
  2. 2. A universal life insurance plan.A universal life insurance plan lets one prepare in advance to fund thetaxes due on their estate through a tax-free death benefit. It providesheirs with cash in hand for final taxes and expenses.Heres how it works: An estimate of the final estate taxes andexpenses can be made in a discussion with your financial advisor.A universal life insurance policy on one’s life with his or her heirs asbeneficiaries can be purchased with a death benefit equal to theestimated taxes and final debts owing on the individuals estate.The tax-free death benefit, paid in one lump-sum directly tobeneficiaries and bypassing probate, then provides your heirs with theimmediate cash they need to cover the final taxes and expenses.Whats more, the policys death benefit can be arranged to grow as theinvestors tax liability grows, so that the policy payout will always beequal to the expected tax debt at the time of death.The heirs can then pay the taxes with the policy proceeds, and familyassets can remain in the family for use by a new generation or untilthere is a favourable market in which to sell the asset.In addition to the estate preservation benefit, the Cash Value of auniversal life insurance plan can also serve as an emergencyfund for business owners, entrepreneurs and individuals whiletheyre alive. There are a number of ways to tap into the CashValue - some of which are tax-free! The Estate Preservation Solution Compared with Other SolutionsTo illustrate - let’s take a real life example: A retired couple both age65 has a current estate value of $850,000, which is projected to growto $1,328,000 in 22 years. After the estate passes to their threechildren, at a 26% marginal tax rate, the estate will incur taxes of$330,808.There are a number of ways to deal with these taxes. © Copyright 2010 Mark Huber, CFP -2-
  3. 3. 1. Heirs can borrow the money they need, and pay the loan off over time. If the estate did not have the cash to pay the tax, the heirs would have the option of borrowing the money to pay the tax. Assuming a loan interest rate of 7.5%, and repayment over 10 years, this is a costly alternative, estimated at around $448,316. 2. Heirs can sell estate assets. They can attempt to decide what would be the best estate assets to sell off at the time of the transfer. The projected cost of the tax bill is still $330,808. 3. The retired couple themselves can put aside money over time to cover the projected expenses. There is no guarantee that the couple could save all the money needed, and they may die before saving enough. Also, the growth of their investments is unpredictable, and taxes must also be paid on the income. In order to accumulate $330,808 in 22 years, its estimated that the couple would need to save $233,545 over ten years, assuming an annual interest rate of 4%. 4. The universal life insurance solution. With the concept of "A Solution to Protect Your Estate," the couple pays predictable premiums of $8,925 a year. When paid over a 10 year period, thats $89,251 to cover more than $330,000 in taxes (or only 7% of the original estate value, versus a 26% loss due to taxes).Whats more, the estates beneficiaries (children, loved ones, businesspartners, etc.) can help pay the premiums so that the cost of thesolution is shared. © Copyright 2010 Mark Huber, CFP -3-
  4. 4. When compared with other options, this universal life insurancesolution is a strategy every business owner, entrepreneur andindividual should consider for wealth creation and estate preservationpurposes.The choice of what to do next is now all yours to make.Your next step?For your very own FREE Estate Creation & PreservationInvestigation contact me, Mark Huber, CFP here at: © Copyright 2010 Mark Huber, CFP -4-
  5. 5. Who Is Mark Huber?Mark Huber, CFP, AuthorMark Huber is a practicing certified financial planner (CFP) with over22 years of experience in the financial services industry.Mark’s boutique planning practice works with a select group of clientswho are all share a passionate vision for creating true wealth andliving their dream lives.Heres A Sampling Of What A Few People Have Said Already...To whom it may concern:Most of us trust our car mechanic, family doctor, postman, butsomehow we decide to manage our financial affairs ourselves.We spend a lot of time reading, researching and making doubtfuldecisions.Everyone can go on internet and buy some stocks or mutual funds.Information today is basically free, but know-how is priceless.You can buy all the tools you need to fix your teeth, but would you doit yourself?If your financial well being is important to you, talk to great financialplanner Mark Huber. © Copyright 2010 Mark Huber, CFP -5-
  6. 6. It is your map to financial stability.Sincerely yours,AZHi!Thanks for your guidance and advice Mark. Our biggest regret is thatwe did not make the changes that we have made under you years ago!Craig and Michele - Vancouver, BCDear Mark,We just wanted to say that we are very happy with your financialadvice and the services you offer.You always respond to us quickly and thoroughly on all our inquiriesand we always feel that you given priority to all our requests - big andsmall.Thank you for helping us to look at our investments in a creative andeffective way.It is a pleasure working with you and we definitely recommend yourservices to all our friends/family looking for good financial advice tomake their money move!L and AVancouver, BC © Copyright 2010 Mark Huber, CFP -6-
  7. 7. Contact Information:Mark Huber, CFPSetForLife Financial Services8380 Ash StreetRichmond, B.C. V6Y 2S3Office Tel: 604-207-9970Office Fax: 604-207-9971Email: mhuber@HowToBeSetForLife.comSuite 2050-1050 West Pender StreetVancouver, B.C. V6E 3S7Office Hours are Monday-Friday9:30am to 4:30pm PST.Or “by appointment”Other sites authored by Mark Huber:http://WeSaveYouTaxes.comhttp://HowToBeSetForLife.comhttp://HowToGetRidOfYourMortgage.comhttp://HowToUseInsuranceToCreateWealth.comFollow Mark on Twitter: with Mark on FaceBook: © Copyright 2010 Mark Huber, CFP -7-
  8. 8. Copyright 2010 SetForLife Financial Services. All rights reserved worldwide.Neither Mark Huber, SetForLife Financial Services assume any liabilitywhatsoever for the use of or inability to use any or all of theinformation contained in Marks Web Sites, Blogs, emails, ebooks,Podcasts, audios, teleconference calls, reports, broadcasts andnewsletters.The information expressed and contained in Mark Huber’s Web Sites,Blogs, emails, ebooks, Podcasts, audios, teleconference calls, reports,broadcasts and newsletters are solely the opinion of the author basedon his personal observations and over 22 years of experience in thefinancial services industry – and that of his guests – based on each oftheir own experiences.As with anything involving investments and investing strategies, youagree to always consult with your professional adviser before makingany investment decisions.Use this information at your own risk. Be responsible! Alwaysdo your own due diligence. -The End- © Copyright 2010 Mark Huber, CFP -8-