Have you ever considered creating a “Family Bank” for the benefit of your descendants? Now I do not mean the establishing of another chartered bank in the United States, or anywhere else for that matter. What I am talking about is creating an immediate “pre-determined” enhanced estate, at your death, for the benefit of your posterity.

YOUR “FAMILY BANK” COULD BE:

• For the benefit of your grandchildren: so that they can receive a good education and thereby have more opportunities in the increasingly competitive workforce

• For a Special Needs child or grandchild: to receive necessary care, outside the bounds of any provided by government medical aid or assistance

• For a generational family retirement income account: to help children, grandchildren, and beyond weather the financial storms they’ll encounter in the future

• For any other future family wants, needs, or considerations

HOW DO YOU DO IT?

To make sure such noteworthy endeavors come to pass, you would first want to establish an exact sum of money, all of which would be available within weeks of your death (whenever that might occur).

Many people have discovered that the most favorable method and guaranteed* way of funding their own “family bank” is using life insurance.

HERE ARE A FEW EXAMPLES**

• At age 80, a female cancer survivor began re-distributing $10,000 each year from her IRA required minimum distribution to pay for a $200,000 life insurance policy—which will be deposited into her “family bank” at her death—and then be made available to her four grandchildren under the provisions she has made in her “Family Bank” document.

• A married couple, age 72, are gifting a total of $26,000 a year to their two daughters to pay for a $1,500,000 joint policy, which will be deposited into their “family bank” upon the second death of the two of them, to be used for the grandchildren's education.

• Ten family members each began receiving an annual “gift” of $13,000 from their father when he turned 70, totaling $130,000 a year, which they utilize to pay for a $5,000,000 life insurance policy on him —which at his death will be deposited into their “Family Bank."

Now by properly following the “annual gift giving” guidelines of the Internal Revenue Code, there are no taxes to anyone in these three examples—not on the “gifted” money, nor on the significantly enhanced life insurance proceeds, which will ultimately fund each respective “Family Bank.”

IF YOU ARE YOU INTERESTED

These are “real’ examples; dollar amounts can be adjusted to accomplish your wishes. If you would like to gather more personalized information about how this concept of a Family Bank might work for your family, let’s get together and see. You are under no obligation by doing so.

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

**Variations in health, age, tobacco use, contribution, interest rates, etc., may affect your results