Have you ever wondered why the ultra-affluent acquire life insurance as part of their wealth succession and estate planning…especially those who have significant liquid assets?
Auctoris has been working with ultra-affluent families and business owners for over 40 years. Throughout these years, our hecto-millionaire and billionaire clients have taught us a great deal.
Our firm’s Principal, Richard Hartmann, compiled some of this wisdom into an article—
Why Billionaires Acquire Life Insurance
This article was published in the August 2020 issue of Estate Planning Journal, a Thomson Reuters publication.
The most profound lesson is that the ultra-affluent see life insurance as both an offensive and a defensive wealth planning strategy. It is OFFENSIVE in that it preserves wealth (illiquid or liquid) from estate tax shrinkage, and DEFENSIVE because during significant economic downturns both the cash value and the tax free death benefit PROTECT the very wealth they desire to preserve.
We invite you to read the article and view the corresponding strategic diagrams.
A copy of the article can be read here.
Detailed visual examples on Offensive & Defensive Wealth Preservation Planning.
In this highly specialized area if you have a client whose insurance portfolio should be reviewed for integrity, performance, and efficiency in light of the proprietary products for the ultra-affluent, or if you would like to discuss any situation to determine if life insurance could have a positive impact, please call or send me an email.
Your thoughts, comments and critiques are taken seriously as we always seek to improve. Thank you for considering how a review could benefit your clients.
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Disclosures
Securities Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer, Member FINRA/SIPC. Auctoris is independently owned and operated. Auctoris is a member of M Financial Group. Please go to mfin.com/DisclosureStatement.htm for further details regarding this relationship.
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This site is for information purposes and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, financial or tax advisor or plan provider.
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