If it appears likely that you will owe any Estate Taxes when you die, here’s something to consider—especially because the bill usually comes due within 9 months after death.

1). Sell or liquidate assets of the deceased—likely the least preferred option, but often the only one available.

2). Borrow from the bank, and then pay back the loan in installments—with interest, a very expensive option.

3). Build up a cash reserve ahead of time—but you may not have enough time to do that.

4). Or, use a “pay-as-you-go” wholesale installment payment plan, where all the necessary money is guaranteed* to be available usually within weeks of the deceased’s burial.

WHICH ONE IS THE BEST CHOICE?

You’ll have to make that decision for yourself, but here is what a 75-year old business-savvy lady did.

She was advised by her attorney that her family could expect an estate tax bill of approximately $2,500,000 upon her death. After discussing this situation with her children she made arrangements to have the funds available, within weeks of her death, using an IRS-approved whole¬sale installment payment plan.

The anticipated Estate Taxes will be paid at what she anticipates will be a very significant discount.

Here’s how: Each year she gifts a total of $78,000 to six family members utilizing her maximum annual exclusion gift of $13,000 per person. With this money her family members, acting as “trustees” to an “Heir Preservation Trust”, are able to make payments on a $2,500,000 life insurance policy, which will be paid in a lump sum when she passes away— all of which will be received completely income & estate tax-free. This method combines the best of all the options available to them, providing an easier and more economical way to pay an inevitable bill.

ANOTHER COUPLE’S USE OF THIS “PAY-AS-YOU-GO” METHOD

Here a married couple, ages 71 and 68, nonsmokers, in excellent health, who pay $11,485 per year; ultimately, they will leave $750,000 to their 4 children to pay the estimated estate taxes, at the time the second one passes away.

IF ESTATE TAXES CONCERN YOU

So, whether the age is 50 or 80; male or female; business partners, a couple or a single person; whether it is annual payments or a single lump sum, if you think you ultimately might owe Estate taxes, consider looking into this option. The very rich of this country have utilized this concept for many many years. You can, too.

It costs nothing to gather the facts, and may well save your “heirs” a significant amount of money.

IF INTERESTED

To learn more about how this concept may be of benefit to you and your loved ones, contact us, without obligation.

***Guarantees are subject to the claims paying ability of the underlying insurance company