Case Study 2

Wealth Preservation for a Successful Business Owner

Now married and focused on preserving his estate, Mr. Daniels faced the potential burden of estate taxes upon his and his wife’s passing. However, his aversion to life insurance prevented him from securing a policy.

Without a life insurance plan in place, Mr. Daniels’ estate would be liable for more than $6 million in taxes. This would compel his family to sell assets under pressure to settle the tax bill, potentially jeopardizing the legacy he has worked hard to build.

To address MA’s concerns and optimize his wealth preservation strategy, a customized solution was created to align with his financial goals. Mr. Daniels was introduced to the concept of corporate-owned life insurance (COLI), which offers unique benefits for business owners like him.

By implementing a COLI policy, Mr. Daniels was able to eliminate his final estate tax liability of over $6 million. Additionally, we established an Immediate Financing Arrangement with a leading financial institution. This arrangement allowed Mr. Daniels to preserve his cash for his business activities while reducing the effective cost of his life insurance premiums to just 5% of the total amount.

This strategic approach not only saved Mr. Daniels’ estate a significant amount in taxes but also ensured the preservation of his wealth for future generations. With the burden of estate taxes eliminated, Mr. Daniels’ family can now inherit his legacy without the need to sell valuable assets.

Are you a business owner concerned about estate taxes impacting your wealth preservation goals? Our customized solutions can help protect your legacy while optimizing your financial strategy. Contact us today to learn how we can assist you.