When the inevitable happens and you pass away, one of the largest expenses your children will incur is likely to be the taxes due on your qualified investments (IRA, 401(k), etc.). Your children will have the option to defer those taxes over five years or even over their lifetime, but statistics show that the vast majority of children take lump-sum payouts without understanding the consequences. These lump-sum payouts can often cause significant tax problems that your children may not understand, because this payout is usually considered taxable income. Since you won't be around to guide them in this decision, you can do the next best thing - plan for it.
Through the use of properly structured life insurance that is guaranteed to remain in place until you reach age 120, we can create a plan tailored to your estate, which can help to alleviate the huge tax burden your heirs may face. Not only is it an excellent planning strategy, it can be a great investment as well.