Do you know what hap­pens to your as­sets when you pass away?

I’ll give you a hint, taxes, taxes, and more taxes!

Estate plan­ning is the process of plan­ning the tran­si­tion of your as­sets to your chil­dren and grand­chil­dren af­ter your death.

Of all con­sid­er­a­tions, one of the most com­plex is tax­a­tion.

Let’s look at an ex­am­ple: The Smiths, suc­cess­ful real es­tate in­vestors

The Smiths, both 50, in good health, with three young-adult chil­dren, had built a lu­cra­tive port­fo­lio of in­vest­ment prop­er­ties.

Both Mr. and Mrs. Smith were on the path to a very com­fort­able re­tire­ment but were ex­press­ing con­cern about leav­ing their port­fo­lio of 5 rental prop­er­ties and fam­ily cot­tage to their chil­dren.

Their chil­dren were very in­ter­ested in con­tin­u­ing the fam­i­ly’s real es­tate in­vest­ment legacy and were not in­ter­ested in liq­ui­dat­ing the cur­rent port­fo­lio to cover the even­tual taxes at their par­en­t’s deaths.

Based on con­ser­v­a­tive pro­jec­tions, the fam­ily was SHOCKED to learn that the pre­dicted tax bill on the cur­rent port­fo­lio would ex­ceed their liq­uid as­sets by $3.4 to 5.9 MILLION.

They needed a plan!

There were two main strate­gies they could em­ploy:

1. Save and in­vest to cover the an­tic­i­pated tax costs

2. Utilize life in­sur­ance to cover the an­tic­i­pated tax costs

But wait, what if they could do both?

We de­vised the fol­low­ing strat­egy:

1. We pur­chased a joint, last to die, par­tic­i­pat­ing whole life in­sur­ance pol­icy

2. By com­bin­ing both Mr. and Mrs. Smith’s lives into one pol­icy we were able to drop their “insurable age” to that of a 43 year old

3. Fund the an­nual pre­mi­ums through an­nual sav­ings

4. Immediately bor­row against the Cash Value of the pol­icy to fund a re-in­vest­ment into a stock port­fo­lio

This so­lu­tion led to sev­eral ben­e­fits in­clud­ing:

1. The abil­ity to uti­lize the stock port­fo­lio to in­crease re­tire­ment in­come

2. A pro­jected TAX-FREE death ben­e­fit of $3.4 mil­lion to cover es­tate re­lated taxes

Overall, the fam­ily was given the peace of mind to con­tinue to main­tain and even build their real es­tate em­pire for gen­er­a­tions to come.

At the Campanella Group we help clients like the Smiths every day. We are ded­i­cated to help­ing our clients forge the best fi­nan­cial path for their fam­i­lies.

Are you ready to take a step for­ward and se­cure a lu­cra­tive fi­nan­cial fu­ture for your­self and your fam­ily? We are al­ways ready to speak to am­bi­tious en­tre­pre­neurs and in­vestors look­ing for an edge.

Feel free to con­tact us for a zero-cost, 30-minute, on­line meet­ing where we can get to know you and de­ter­mine if we can help you pave a path to fi­nan­cial suc­cess.