Estate analysis can be defined as a picture of one's estate distribution at a given point in time as it relate to the consequences of death and taxation. To put it another way: If you died today, what effect would death have on your property?  Would you have enough cash to pay taxes and administrative expenses? Will your heirs have to suffer through asset reduction to meet these necessary cash requirements? An estate analysis can help answer these critical questions. The Life Insurance Agency's Estate Analysis Service is a professional and simple service to assist you in your estate planning.

Is there a charitable organization toward which you feel strongly? What is important to you? Your church, temple, alma mater, hospital, local symphony? The list of possibilities is long. This is the easiest way to break in to the charitable marketplace.

Most successful families have to work to overcome the challenges inherent in passing a family business to the next generation. At least once a year, you and your family should review your company's performance and plans, assess your family's plans, and update personal activities and goals. The purpose of early planning, discussions is not to solve all of your challenges, but to develop some understanding of the challenges ahead.

Estate Protection Strategy

Is there a way you can pass your IRA or other taxdeferred investments to your beneficiaries without worrying about estate or income taxes greatly reducing the value of your assets? Yes. When set up properly, an estate protection strategy effectively allows you to pass the value of your IRA or tax-deferred saving to your loved ones or charitable organization, tax free upon death. The key is planning ahead.

STEP 1 Take distributions from your taxdeferred accounts.

Many retirement savings plans allow you to take account distributions without withdrawal penalties if you are at least 59½. Current laws governing many tax-deferred accounts, such as IRAs, require minimum annual distributions beginning after age 70½. If you do not need these distributions for income, then you can use them to initiate an estate protection strategy.

STEP 2 Establish a life insurance trust.

It’s relatively easy to establish a life insurance trust. You create a trust and name the trustee. You then select the trust beneficiaries (family members, friends, charitable organizations, etc.). Assistance from an estate-planning attorney is required.

STEP 3 Use distributions to fund a life insurance policy through your trust.

Providing that you followed steps one and two, and that you qualify for a life insurance policy, use your planned annual distributions to fund a policy on your life. The life insurance policy is held inside the trust – outside your taxable estate. The trust is the owner of the policy and your loved ones are the beneficiaries. When properly arranged, the premium payments to the trust can be taxfree gifts.

Wealth Protection Strategy

STEP1 Take distributions from your taxdeferred accounts.

STEP 2 Create an irrevocable life insurance trust and fund it with gifts from your after-tax IRA distributions.

STEP 3 The trustee purchases a life insurance policy covering you and/or your spouse.

STEP 4 At death, the trust receives tax-free life insurance benefits.

STEP 5 The trustee distributes the policy proceeds to your heirs according to your instructions, estate and income tax free.