When high-net-worth individuals hit retirement and have amassed sufficient assets, it’s common that they become concerned about finding the most tax-efficient way to pass those assets on to their family and charities for generations to come. An easy way to facilitate this is with an Individual Retirement Account (IRA) Maximization by means of life insurance. This strategy allows retirees to move their assets into a favorable tax-saving vehicle.

To take advantage of this strategy, individuals can create an individual life insurance trust (ILIT) and later apply for a life insurance policy on the owner’s life. The owner can then begin annual distributions from the plan to fund the life insurance using two options – invest the IRA assets or take early taxable distributions.

Our insurance affiliate, Doeren Mayhew Insurance Group, further explores this strategy, including how it works, areas to consider and more. To read the full article, click here.