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GBS News: April Issue - Estate Planning

Published on April 22, 2021

 

 

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April Issue: Looming Tax Increase and Estate Planning

Our focus this month is on Estate Planning. As advisors, we know that creating an estate plan is one of the most important things a person can do for their loved ones. As tax proposals offered by candidate Biden during his campaign, the current Biden Administration, and various members of the Congress are coming together for consideration, there is much pressure to tick priority items off as DONE well before the next election cycle and preferably as soon as possible. Below is a compilation of estate planning resources you can use with centers of influence and clients — from basic tools to sophisticated planning techniques.

Marketing Resources:

 

Gallagher Brochure: Estate Succession and Securing Your Legacy with Life Insurance

When it comes to wealth transfer planning, you have your unique perspective and priorities about who and what you want to take care of, and the legacy you wish to leave behind. Whether you want to leave a legacy to your family for generations to come, assure the continuation of a business you have built or make a significant impact through philanthropy, the strategic use of life insurance can help you address your goals.

 

Gallagher Flyer: Preserving Family Wealth - Estate Planning

With the 50% balance of the U.S. Senate held by each major party and the Vice President breaking a tie vote, the stage is set for more progressive tax proposals to become law.

POSSIBLE IMPACT:

  • Capital Gains and Dividends as ordinary income for taxpayers with income greater than $1 Million.
  • Itemized deductions for the “wealthiest” to be capped at 28%.
  • Increase in top marginal rate from 37% to 39.6%.
  • Reduce the Estate Tax Exclusion from $11.1 Million to $3.5 Million, and a new increased 55% estate tax rate (up from 37%), with a 75% tax due on estates greater than $1BN.
  • Loss in step-up basis.
 

Gallagher Article: Tax Increase Considerations and the Important Role of Life Insurance

As legislation to increase taxes loom, life insurance becomes an important vehicle for preserving generational wealth. Click below for an in-depth article on the pending tax increase considerations.

 

Carrier Brochure: Estate Planning - How Taxes Affect Your Assets at Death

Tax laws are about to change. It’s imperative to have a plan in place to protect the wealth you’ve built. This guide will help you understand the taxes that have the potential to erode the value of your estate.

Life insurance can be a very effective tool in the estate planning process and can help you:

  • Provide your heirs with a death benefit that is generally income and estate tax-free (if structured properly).
  • Provide liquidity to help pay any estate taxes that may be due.
  • Ensure any outstanding debts are paid.
  • Manage probate costs.
  • Protect against potential creditor issues.
 

Carrier Client Guide: Estate Planning

We hope this guide will help to provide a clearer understanding of estate planning — from basic tools to sophisticated planning techniques. By using this guide and working with your clients to implement planning options, you’ll be well on your way to preserving the estate your clients worked so hard to build.

 

Carrier Fact Finder: Estate Planning

Use the attached fact finder as a guideline to get a general understanding of your client's situation. The fact finder is a tool devised to provide a detailed summary of each of the key areas necessary to effectively create a business succession plan, estate plan and retirement plan through insurance and investment mediums that will maximize tax advantages.

 

IN CASE YOU MISSED IT

 

WATCH NOW! We are happy to announce a new carrier partnership with Pacific Life.

In case you missed our latest webinar Introducing Pacific Life – 5 Opportunities to Help Boost Your Business featuring Michelle Kosoi of Pacific Life, you can now watch the on-demand recording at your convenience by clicking the link below.

We discussed how Pacific Life can help you reach a broad, underserved market with simple, affordable term and GUL life insurance solutions. Watch to learn how these five opportunities will help boost your business.

Now available from GBS: Pacific Life’s Promise Term and GUL, which are among the most competitively priced products on the market.

Their Smooth Sailing program offers fluidless, no-exam underwriting on issue ages 50 to 69 for up to $1 million.

For more information, please reach out to your GBS Brokerage Manager. 

  1. PL PROMISE TERM - Help your clients fulfill their promises with affordable death benefit protection!
  2. PL PROMISE CONVERSION UL - Early conversion incentives for your clients when they upgrade their coverage from PL Promise Term.
  3. PL PROMISE GUL - Give your clients death benefit protection with the certainty of a guarantee plus optional living benefits.
  4. PL SMOOTH SAILING - Offer clients ages 50-69 predictable fluidless underwriting with simple qualification requirements and no hidden knock-out criteria.
  5. eCAPABILITIES - Committed to being a leader in innovative technology, we're continually developing digital enhancements that can help streamline processes and increase speed.
 

THANK YOU

 

We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

For agent use only - not for use with the general public.

Corporate License No. 0D87913

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21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2021 Arthur J. Gallagher & Co. 

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