The Problem With LTC Riders In The Third Person
And so it is with tax laws, the worst is the one that costs you – made worse by the fact that you didn’t see it coming.
And so it is with tax laws, the worst is the one that costs you – made worse by the fact that you didn’t see it coming.
The visibility and responsibilities of those in high places often deny them the flexibility and lack of restraint enjoyed by the common folks in the seclusion and simplicity of their more private lives and smaller worlds.
As an advisor, you should be aware of and alert your clients to several issues in this marketplace if you are to effectively manage expectations as well as make an achievable sale.
Knowing all the facts can certainly change the response to circumstances.
Even with proper forewarning, the effect under the “single bonus” method can result in the plan losing its luster in the eyes of the participant when tax time rolls around.
These grantor/intentionally-defective/irrevocable/lay in the house that Jack built/life insurance trusts turn the idiom on its head by allowing, from at least a tax perspective, a taxpayer to have it both ways.
In the personal context there hovers about the discussion of tax-deductible costs for coverage the possibility of holding life insurance in a qualified plan.
In a low interest rate environment, many policies that are held in trust may be under-performing and do not have the underlying guarantees to ensure that the policy does not lapse prematurely and that the primary objectives for the insurance planning are obtained.
The sad truth is that if your clients do not take the time to plan correctly the government is poised to do it for them poorly when the need arises.
The difference is that they have no ownership interest; and therein lies the sales opportunity.