Joint Last to Die

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Joint Last to Die

Could you be a capital gains tax hostage?

The good news is relief is simple. It’s called Survivorship Life or Joint Last to Die life insurance.

Here are the many uses for this type of insurance:

  • Estate Conservation: to ensure children receive full value of their parent’s estate unreduced by taxes
  • Pay Capital Gains Taxes: in the most inexpensive and prompt method
  • Asset Protection: eliminates the need for an untimely or unnecessary sale
  • Provide a Life Insurance Trust: irrevocable, creditor proof, guaranteed income for special individuals or situations
  • Retain control of a Family Business: by providing funds for its continuation
  • Charitable Contributions & Trusts: established without depleting estate assets
  • Business Key Person Coverage: an economical solution for a business that may only be able to withstand the death of one key employee but not two
  • Two Income Family Protection: can provide substantial income protection for children in the event of the death of both parents

You basically have only 3 Payment Options for paying Estate Capital Gains Taxes.

  1. The 100% Cash Option: Provided the estate contains substantial liquid assets, some of these assets can be redeemed and used to pay the taxes. This option would, however, reduce the size of the estate significantly.
  2. The 100% Plus Option: This option involves selling off liquid assets, usually under the least favourable conditions, for prices well below market value. Not only is the estate’s size reduced by the tax liability, but it is also deprived of significant future gains and income because normally valuable assets would have to be sold at bargain basement prices.
  3. The Discount Option: A Survivorship Life or Joint Last to Die insurance policy, funded with premium payments that are a small fraction of the ultimate benefit, provides the necessary liquidity to pay taxes without draining the estate. If the annual compound after tax yield on premiums invested is considered , when death occurs, it is quite evident that the most economical and least disruptive option is Joint Last to Die insurance.

Don’t be a capital gains tax hostage! Call us today. The first consultation is on us.