Case Study #1:
An uninsurable man of 80 who had 2 heart attacks had $500,000 in his plan, married to a 60 year young lady. He knew it was much more efficient to $500,000 get out of his name while alive in a married bracket versus handicapping his wife in a single bracket when he dies. We transformed the IRA money to potentially paid tax free income for the spouse.
Case Study #2:
A single 70 year young lady that had 3 daughters. She was uninsurable, but her daughter lived close and took care of her. She needed guaranteed income so we used the arbitrage of her and her daughter’s life to accelerate income and get it out of clients taxable IRA. The IRA or its’ income which could be attacked for care and into a contract not in her name, but rather a partnership of her three daughters. We set up the daughter’s account to be able to spit out tax free income after the 6th year to each of them. By the 5th year the asset was out of the account and owned by the daughters in a non taxable format. Since the client had other income coming in from Social Security and a small pension, the income and the small other assets were available to take care of 1-2 years of needing extended care and the replaced IRA was exempt after the five years.
Case Study #3:
A doctor is worth over 15 million and has 5 million in his plan and he is still working at age 82 and spouse has dementia. He can’t figure out how to have the income he has as a doctor. We showed how he could have more tax free and transfer to grandchildren through a dynasty trust, skipping generation taxes and stopping work or slowing down.