Complex issues with estate, business, tax and legal and charitable giving.
Our partnership gives you access to powerful planning strategies.
We provide assistance for complex estate, business and charitable planning concepts, as well as solutions for tax and legal issues. A partnership with PCP gives you access to knowledge of the industry’s most advanced planning strategies.
Wealth TransferIf you planned so well during the accumulation phase of your financial plan that not all of your wealth may be needed during retirement, you can transfer excess assets to your heirs, creating a lasting financial legacy.
PCP understands the challenges and risks associated with helping you structure and manage your wealth. Our firm is experienced in developing complex strategies to address your unique needs.
Asset RepositioningHave you completed a personal financial statement within the past several years? A simple review of the assets and sources of income listed may reveal some planning opportunities to help you more effectively transfer wealth to your heirs.
PCP can help you reposition some inefficient financial statement items, which can limit exposure to estate and/or inheritance taxes.
Leveraged GiftingMaking lifetime gifts alone can be an efficient way to transfer assets and minimize gift and estate tax, but gifts may be leveraged significantly with the purchase of life insurance.
- Reduces the size of the taxable estate
- Removes future appreciation and income attributable to gifted assets from estate
- Provides greater privacy and probate avoidance
- May provide creditor protection for gifted assets
- May increase the net amount of wealth transferred to heirs
Charitable planningDonating life insurance can be an ideal way to make a charitable gift, either during life or at death.
- A gift of life insurance is certain as long as the policy remains in force
- The full proceeds are payable to assure your philanthropic goals are achieved
- Life insurance is generally paid promptly; not tied up in the administration of the estate
- Unlike a will, life insurance is not a matter of public record; proceeds can pass to a nonprofit in privacy, if you desire
- Gifts of a policy or premium payments are generally tax deductible
Business planningPCP understands the importance to business owners of protecting your business and employees. Life insurance helps with these business protection goals by:
- Protecting against the death of key employees
- Accumulating cash to fund future obligations under employee benefit plans
- Funding buy-sell agreements
- Nonqualified Deferred Compensation Plans allow executives to defer a larger portion of their compensation than qualified plans.
- Executive Retirement and Bonus Plans can provide survivor income, retirement income, estate liquidity, disability income protection and educational funding.
Life insuranceOne asset that can be attractive to reposition is life insurance, which offers potential advantages over other types of assets and may increase the amount of wealth transferred to heirs:
- Easy asset to own outside the taxable estate without onerous gift tax consequences—especially if the gift is equal to the annual premiums, which may fall within the client’s annual gift exclusions
- Clients can hedge against market losses by directing a portion of their portfolio to life insurance premiums
- Death benefit is uncorrelated with other sectors of the investment marketplace, such as equities or bonds
- May increase tax-adjusted, internal rate of return for client’s portfolio
- If properly owned, death benefit can be received free of estate tax and income tax
1. Single Premium Immediate Annuities make fixed payments for a contracted timeframe. Payments, which consist of principal and interest, are typically not adjusted for inflation so the buying power of the payments issued may erode over time. Please note the decision to annuitize is irrevocable, and principal cannot be withdrawn at a rate greater than the contracted payout rate. All guarantees are subject to the claims paying ability of the issuing insurance company.
2. All guarantees are subject to the claims paying ability of the life insurance company.
NFP Advisor Services, LLC (NFPAS) does not provide legal or tax advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax and legal counsel.
10441 S. Regal Blvd. Suite 100
Tulsa, Oklahoma 74133