Access to Liquidity is key to a well-designed wealth succession plan.
The state of the Markets and the value of your portfolio at the time of your succession is impossible to predict, so if Liquidity is critical during this period of transition, or needed to achieve specific objectives, you may consider Life Insurance to complement your succession plan.
Here are three key ways that Life Insurance can help you to fund your legacy:
The first is Liquidity Creation.
Life Insurance can mitigate your family’s liquidity needs at the time of death.
With insurance, you can avoid the need to hold excess cash, and reduce the pressure on your beneficiaries to raise cash quickly through the liquidation of a portfolio, or sell illiquid assets at depressed prices.
Should uncertainty over business succession arise upon death, insurance also provides immediate liquidity to help your family sustain the business until the succession issue is resolved.
Life Insurance can also help you with Liability Management.
In the event of death, your beneficiaries could be burdened by liabilities or financial debt, such as having to pay estate taxes or repay outstanding mortgage loans before they can inherit your assets.
Insurance can be used to meet such liabilities as the insurance proceeds would be paid to the family at a time when it is needed and may even enjoy favorable tax treatment in some countries.
You must always discuss your insurance needs with your legal and tax advisors together with insurance brokers to source the right type of insurance product to meet your needs.
And finally: Legacy Planning.
You may have special gifts that you intend to make after your lifetime, such as establishing a philanthropic legacy or caring for the special needs of a loved one.
Life Insurance could multiply the amount available for such special gifting.
You would pay the smaller initial premium and designate the larger payout to fund a multi-generational legacy plan.
In turn, each generation can continue to employ Life Insurance to add to this legacy of giving and perpetuate a family tradition of supporting charitable causes through the generations.
So why not take the time to think about Liquidity reation, Liability Management and Legacy Planning, and start making a plan to fund your legacy today.
If you wish to have a discussion, please reach out to your J.P. Morgan Private Bank advisor.
Access to Liquidity is key to a well-designed wealth succession plan.
The state of the Markets and the value of your portfolio at the time of your succession is impossible to predict, so if Liquidity is critical during this period of transition, or needed to achieve specific objectives, you may consider Life Insurance to complement your succession plan.
Here are three key ways that Life Insurance can help you to fund your legacy:
The first is Liquidity Creation.
Life Insurance can mitigate your family’s liquidity needs at the time of death.
With insurance, you can avoid the need to hold excess cash, and reduce the pressure on your beneficiaries to raise cash quickly through the liquidation of a portfolio, or sell illiquid assets at depressed prices.
Should uncertainty over business succession arise upon death, insurance also provides immediate liquidity to help your family sustain the business until the succession issue is resolved.
Life Insurance can also help you with Liability Management.
In the event of death, your beneficiaries could be burdened by liabilities or financial debt, such as having to pay estate taxes or repay outstanding mortgage loans before they can inherit your assets.
Insurance can be used to meet such liabilities as the insurance proceeds would be paid to the family at a time when it is needed and may even enjoy favorable tax treatment in some countries.
You must always discuss your insurance needs with your legal and tax advisors together with insurance brokers to source the right type of insurance product to meet your needs.
And finally: Legacy Planning.
You may have special gifts that you intend to make after your lifetime, such as establishing a philanthropic legacy or caring for the special needs of a loved one.
Life Insurance could multiply the amount available for such special gifting.
You would pay the smaller initial premium and designate the larger payout to fund a multi-generational legacy plan.
In turn, each generation can continue to employ Life Insurance to add to this legacy of giving and perpetuate a family tradition of supporting charitable causes through the generations.
So why not take the time to think about Liquidity reation, Liability Management and Legacy Planning, and start making a plan to fund your legacy today.
If you wish to have a discussion, please reach out to your J.P. Morgan Private Bank advisor.
Access to liquidity is key to a well-designed wealth succession plan. The state of the markets and the value of your portfolio at the time of your succession is impossible to predict, so if liquidity is critical during this period of transition, or needed to achieve specific objectives, life insurance could be one of the ways to complement your succession plan. Understand how life insurance could be useful for liquidity creation, liability management and legacy planning as part of a holistic succession plan.
