Are you ready to preserve what it has taken you a lifetime to accumulate? After you're gone, will your assets be distributed consistently with your wishes. There are steps you can take now to help ensure an effective transfer of your assets.
Estate planning or wealth transfer tactics can help minimize the impact of taxes and expenses while maximizing distributions to heirs, third parties or charities. These preservation techniques involve both estate and business planning. The Principal Financial Group® offers numerous effective techniques.
- Irrevocable life insurance trusts (ILITs) - A trust used to remove the ownership and control of a life insurance policy from an estate. Life insurance can be used to fund estate taxes and final expenses upon the death of an individual.
- Private split dollar - Typically an agreement between an individual and an irrevocable life insurance trust, designed to provide estate tax protection while minimizing the value of gifts to fund the trust.
- Principal Annuity LegacySM - A tax strategy that uses life insurance in a way that helps leverage an annuity and minimizes the tax implication of tax-deferred annuities that are left in the estate.
- Principal IRA ExchangeSM - A tax strategy that helps beneficiaries avoid estate and income taxes by investing in a fixed-period annuity held inside an IRA and using the after-tax payouts to purchase life insurance.
- Charitable trusts - Charitable remainder and charitable lead trusts allow an individual to remove assets from an estate, obtain an income tax deduction, and in some cases secure an income stream that can be used to purchase life insurance for the benefit of heirs.