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Planning in Uncertain Times Part III: The Cost of Delay (Gift with Life Insurance)

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An article by Bob Finnegan, J.D., CLU®, HCB Senior Vice President, Advanced Sales Attorney, re-published in Steve Leimberg’s Estate Planning Newsletter on April 12, 2017.

Part I of this Newsletter explored possible legislative paths to estate tax repeal and the importance for high and ultra-high net worth clients to continue to engage in estate planning regardless of the outcome of repeal legislation.

Recognizing that many clients will be tempted to delay planning, Part II of this Newsletter explored the cost of delay based on a modeling approach to compare a discounted gift (without life insurance) today versus in five or 10-years.

Part III continues the “cost of delay” analysis utilizing the same methodology as Part II, but introduces the purchase of a fully guaranteed survivorship universal life insurance policy by the Dynasty Trust. The cost of delay, even assuming the insureds remain preferred risks, is staggering.



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