Newport Beach, Calif. (August 6, 2009) – It is easy to lose sight of opportunities when you are sitting on top of a smaller net worth. The tendency to avoid any review of the wreckage left by the recent market meltdown is a common challenge. If you help your affluent clients look for today’s silver lining, together you may discover that the combination of low interest rates, depressed assets and short-term availability of valuation discounts makes it an ideal time to do some forward-thinking estate planning.
A new sales kit from Pacific Life explains how the changing landscape of estate planning requires a more holistic approach to planning an estate. It helps insurance professionals identify client concerns and match them with wealth transfer strategies that use life insurance to help clients’ reach their wealth transfer goals. Alyce Peterson, vice president of marketing services for the company’s Life Insurance Division, explained that planning an estate is no longer about planning just around estate taxes. The combination of planning strategies and life insurance can help:
- Transfer a family-owned business from one generation to another.
- Retain a treasured family home or family farm for generations to come.
- Provide cash to pay estate transfer costs so family treasures do not have to be sold.
- Maximize wealth transfer to the next generation by using gift and estate tax valuation discounts that may not be available in the near future.
- Reduce estate taxes and provide sufficient liquidity to pay taxes due.1
“We are in an unprecedented environment for planning an estate,” Peterson explained. “Assets transferred at depressed values with the added benefit of available valuation discounts may be an invaluable though limited opportunity to help a client accomplish some of their future wealth management goals. With proposed legislation limiting some valuation discounts, the climate may never be better for planning an estate. After all, it’s not just what your clients have, it’s what their heirs can keep. And life insurance can help them keep more.”
The kit, “Fate of Your Client’s Estate: Forward Looking Wealth Transfer Strategies and How Life Insurance Can Help” features a client guide to help identify goals and concerns, case studies, and a comprehensive planning strategies pocket guide. Insurance professionals can get a kit by contacting their Pacific Life representative or by calling 866-722-9555.
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. With more than half of the 100 largest U.S. companies as its clients2, Pacific Life is also a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities. For additional company information, including current financial strength ratings, visit the About Pacific Life & Annuity section of this Web site.
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The federal estate tax exemption amount is $3,500,000 in 2009. The highest federal estate tax rate is 45% in 2009. The federal estate tax will be repealed on 1/1/10 until 12/31/10. Beginning 2011, the federal estate tax will be reinstated with a federal estate tax exemption amount of $1,000,000 and a maximum estate tax rate of 55%. Congress continues to discuss and consider legislation that, if passed, would permanently repeal or otherwise lessen the impact of the federal estate tax. |
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Client count as of April 2009 is compiled by Pacific Life using the 2009 FORTUNE 500® list. |
Pacific Life refers to Pacific Life Insurance Company, and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York, and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Product and rider guarantees are backed by the financial strength and claims paying ability of the issuing company and do not protect the value of the variable investment options. Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker-dealers.
This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
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