Estate Planning: Make It Your Goal to Die Broke

Estate Planning: Make It Your Goal to Die Broke

Your estate is the legacy you leave for your family. You want them to have as much of your assets as possible; so, you need a way to keep the government from taking so much during probate. You also want to thoroughly enjoy your life, right to the end. To accomplish all of this, your best option is to die broke.

Yes, this sounds like a contradiction. But it’s a very shrewd strategy, to liquidate your assets and their heavy estate-tax burden, replacing them with a life insurance policy. You will effectively shut the government out of your affairs by leaving nothing to be taxed. Your estate is still intact, but it’s now in the form of a tax- and probate-free insurance policy.

For example, if you have estimated your net worth to be around $3 million, you then purchase a life insurance policy for that value, selecting a permanent option to ensure it’s still there when you die. Your financial advisor can help you choose the right policy for you.

You create a new asset this way, reserving part of your newly enlarged cash flow to pay for it. Since insurance policies are tax exempt and have specific beneficiaries, the money will be immediately available on your death, bypassing what can be a lengthy probate process, to quickly provide your family with support.

You can now live a worry-free life, because you know that the full value of your estate will be passed on to your children. Max out your pension; sell everything and live off your assets fully; take the vacations you want and enjoy your life. You get to spend it and you also get to give it away.

All the money you’ve ever earned has become available to you. Many people live very carefully in their golden years, to ensure they leave something behind. But now your family is taken care of. So, don’t worry about that; do some more traveling; buy the car you want; you’re not infringing on their inheritance.

Go ahead and enjoy your life; there’s nothing wrong with it. Call your Financial Advisor to discuss how this clever strategy could be just right for you.

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