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The requirement for Continuing Insurance Education (CIE) to continue your insurance in good standing also presents a opportunity to prepare for tomorrow's marketplace.
The indicators of the future, such as changing annuity tax laws and lower interest, make it prudent for you to increase your "value added skills." Here are seven areas in which to focus your attention:
1. Irrevocable Life Insurance Trust;
2. Family Limited Partnership;
3. Tax relief for failed business-owners;
4. Section 419 Life and Severance Pay Plan;
5. Medicaid Trust;
6. Revocable Living Trust and funding; and
7. Basic family documents: Living Will, Health Care Representative Durable Power of Attorney, Medical Directive.
There's a special way to find prospects in each area and methods to complete the needed life insurance sale. In addition to industry-sponsored CIE seminars, legal and accounting continuing education seminar sponsors may have their seminar content also approved for CIE. You should consider attending them if they cover any of the above seven areas.
IRREVOCABLE LIFE INSURANCE TRUST
In the current tax and political environment, it is not prudent to assume that this well-established, safe and currently acceptable planning opportunity will be around forever. For prospects well above the $600,000 net worth level and with substantial income, a gift of life insurance offers a way to create a large sum of money to become available upon the death of the donor-insured and/or spouse, free of any federal estate or gift taxation.
A business or farm can be preserved, intact, by creating this type of liquidity. And there are no probate or other delays experienced by the trustee when the insured dies. To establish such a fund, the donor-insured must give up the premium deposits, the money that could have been earned by keeping the premium deposits and investing them elsewhere, and all control over the gifted life insurance policy.
Prospects include just about every successful and insurable person worth $600,000 or more with solid income, and a clear postmortem objective which may be solved with an irrevocable life insurance trust. Seek a CIE program that intends to cover the mechanics of running an irrevocable life insurance trust; e.g., when an annual trust income tax return is required and how to set up the trust to avoid this...