Transfering Wealth to Your Children and Staying Rich Forever & Ever

Let’s discuss the ways that you can transfer your assets to your children without the IRS taking a large portion of the money. Financial Guru's are talking about the tax implications of transferring your assets and wealth to you children. What is the best way to do this without Uncle Sam taking most of the money? A leading CPA and Estate Planner Ed Slotts who has been featured on public TV recently talks about transferring wealth from generation to generation through life insurance. In his DVD seminar Stay Rich Forever & Ever, Ed does not go into detail on what type of life insurance you should use, he just states that this is one of the best ways to accomplish wealth transfer from generation to generation.
There are several types of life insurance that you can choose from and they all have different pros and cons. One of the best types of life insurance for this type of wealth transfer is a permanent type of insurance to accomplish this goal. For obvious reasons you would not want to have a temporary type of life insurance that might not go till you die.
Why life insurance to transfer wealth to your children? Well for one with life insurance the beneficiary does not have to pay any kind of probate, estate, or capital gains tax. So it goes directly to your loved ones without any probate hassles. This process takes about 30 to 60 days after death so it is a very short process to receive the money. This money can be reinvested into another life policy to be used in transferring the wealth to the next generation. This continues the wealth transfer from generation to generation. And that is how wealthy people Stay Rich Forever & Ever.
Lastly, here’s a little story that happened to my family. My grandmother passed away a few years ago and left a house in Hawaii to my mother this was the only asset she had left and it was worth about $750,000. This is the house my mother grew up in and we as grandchildren went to stay with our grandmother every summer. When she passed away there was a lot of probate and estate taxes that they wanted my mother to pay so we had to sell the house in Hawaii to pay off the taxes. What was left of the money my mother used to buy a small retirement home in California and the money is all gone. In one generation we lost a family legacy because of improper planning.
Lets rewind the clock and see what would happen if my grandmother instead of paying off her house had bought a million dollar life insurance policy. The house was bought in the late 1939sa mile from Waikiki beach probably for a couple hundred thousand dollars. Instead of paying off the house if they had bought a million dollar life insurance for my grandmother when she was still young and had paid into the policy during her life time, when she passed away, she would have left my mother a $750,000 dollar house in Hawaii and a million dollars life insurance policy. My mother could have used the money to pay all the probate, estate, capital gains taxes, and the mortgage and she still would have had money in the bank. Because of improper planning in one generation we lost everything.


Reader Comments (1)
Did you close the deal, by rolling it over into a annuity or a policy? The woman that you mentioned in the first part of the story? I can't believe someone would do what they were doing!