Gifting is an important tool in designing many types of Advanced Markets cases. Gifts can create opportunities but may also generate complications for producers and clients.
Questions you may be asking are, “How will knowing more about the gift rules help me in my career?” or “How will gifting help my client achieve their goals?”
Because your clients have the opportunity to realize significant financial and emotional value in making gifts, you will want to be knowledgeable about gifting. The financial and emotional value clients experience through gifting can be enhanced with Life Insurance.
Generally, it’s not difficult to convince clients that they need insurance, but it’s hard to find the money to pay the premium.
Gifting may be the answer for getting the necessary premium dollars.
With Life Insurance, gifts serve a similar purpose. A client may gift cash to an adult child so that child may purchase a policy on the parent/giver. When the giver dies, the child receives a tax free death benefit that can pay for services or items that the giver may have previously supplied.
For example, a father has three children, but only two of whom have interest in owning real estate that has been in the family for generations.
To equalize his estate, the father gives cash to the non-business heir, Jill, so she can buy a Life Insurance policy on him. At the father’s death, the real estate can move to his two children that are interested in owning it, Jill receives cash from the policy’s death benefit while keeping the death benefit out of the father’s taxable estate.
Regardless of whether the gift is given for financial or emotional reasons, gifting can be a big part of a strategy to get clients closer to their desired goals.
For more information about gifting call your Life Sales & Marketing Representative.
Phone: (949) 863-0700 ext.109
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