Family Wealth Transfer / Cascading Insurance

Family Wealth Transfer / Cascading Insurance

• Client Profile
  • Older individuals (grandparent or parent), who may be in poor health, with young and healthy heirs (the younger the heirs, the better).
  • Possible desire to pass some assets on to heirs while they are still living, but to also retain control.
  • Large amount of assets earmarked for heirs.
  • Desire to help next, or further removed, generation(s) with post-secondary education, or with the eventual purchase of a business, or with retirement needs (currently a growing trend in Europe).
• Solution Opportunity
  • Child / grandchild is both the insured and successor owner of a UL.
  • UL is maximum-funded as quickly as possible.
  • Parent / grandparent retain control as owner, and/or as irrevocable beneficiary.
  • Assets in the UL that are withdrawn by the insured once they have become owner will be taxed in their hands. These assets grow very rapidly in the interim, while they are sheltered within the UL.
  • Child / grandchild will have insurance protection for so long as policy is kept in force, regardless of any other health issues that may afflict them later in life.