Estate Maximization

Statera Financial Planners |

You’ve worked hard over the years to increase your net worth. This ultimately builds an estate that may consist of things like registered and non-registered investments or property.

Ideally, you’d like your family, or perhaps your favorite charity, to receive as much of your estate as possible when you die. But when an estate isn’t structured effectively, unfortunately much of it can end up in the hands of the government in the form of taxes.

So, how can you maximize your estate for your beneficiaries while paying the least amount of tax?

There are many strategies, and one answer could be a life insurance estate maximization approach.

This strategy essentially leverages the implementation of life insurance policy to maximize the amount of tax-free money that gets passed to your beneficiaries directly and bypassing the estate.

How does it work?

Growth inside of a life insurance policy is tax sheltered and ultimately pays out tax free when a designated beneficiary is listed.

Ordinally you could have an annual tax on investment income and income tax on deferred capital gains and eventually pay estate settlement costs on any of those remaining assets. With an estate maximization life insurance policy, while the settle costs would still exist on any assets flowing through your estate, there would be no annual tax on accumulated growth within the life insurance and no tax on life insurance death benefits.

Thus, you are able to leave a larger legacy to the people or organizations that you care about!

If this is something you are curious about or you have questions around your own estate, contact Statera Financial Planners and we can help talk through some strategies that may fit within your personal situation.