Part of the joy of doing what I do is talking to interesting and smart people. I got a call from a man who as he put it “just spent time with his tax attorney that was worse than going to the dentist.” He was a little put off about the loss of control of his money required in creating a trust that was tax efficient and his 401K rules and regulations.
He had sold his business and created an estate plan that would take care of his 3 kids and his wife at his and her death. But he wanted to create a living legacy and so he called with an idea. He had read my blog on EIULs and he wanted to know if he could use it to leave money to a charity his wife was heavily involved in and to help out the grandkids  when they got older. So we started to talk. And then he got excited, and got his wife on the phone too.
Planning for the Future
He wanted to gift his kids and his grand kids the maximum under the gift tax rules down the road. His wife, however, had different ideas. She thought about an exotic vacation for the entire family once the grand kids were old enough to appreciate it. The whole family together in some foreign land creating once-in-a-lifetime memories. He thought about a college graduation reward program for the grandkids where he would give them a choice of an around-the-world trip or a new car. And the ideas just kept flowing. Needless to say I just sat there on the phone allowing them to dream and create a living legacy for their family.
And then there was the charity. Why not name them as the beneficiary?
At the end of the day, they would remain in control of this policy. They could control how much and for what use the money would go to. And how much would be left in the policy for the charity. It could be a huge endowment or a smaller one depending upon how much they used as a living legacy for their family.
They chose a second-to-die EIUL which kept the insurance costs low despite some small health issues.
Here is what they accomplished with this EIUL:
- A living legacy created on their terms;
- Control of their money [not a trustee nor government rules and regulations];
- Tax efficient; and
- Charitable Donation.
What living legacy would you create? Let me know in the comments below! Let’s dream……