Generational Wealth Transfer

You already have excess wealth that you plan to pass on to the next two generations. You want them taken care of financially and have likely earmarked a portion of your investment portfolio for them.

One issue that arises is that all non-registered investment growth is eroded by taxation.

 

 

Have you considered a generational wealth transfer using permanent life insurance? You can take out an insurance policy on your adult children and investment growth in these plans is not subject to annual taxation, increasing your overall wealth. As the owner of the plan, you control money growing inside and can access it during your lifetime if needed.

 

When you purchase the plan and ensure your child, they have a valuable asset right away: life insurance protection. You can transfer the policy to them at any time tax-free, however, most people will transfer the policy at the time of their passing. This is done seamlessly by naming them as contingent owners on the plan. As the new owner, they now have access to all the money that is growing inside the policy. This money can be used to help buy a home, supplement their retirement, or help fund their child’s education.

 

 

 

By naming them as the beneficiary of the policy, you have helped put a foundation in place they can build on. As the named beneficiary on the policy at the time of your adult child’s death (hopefully well into the future) your grandchild will receive the death benefit proceeds tax-free.

 

 

 

 

 

 

CFS Wealth 1-888-451-6133 or fill out our contact form.