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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2019

The Gift That Keeps on Giving

The Gift That Keeps on Giving

While it pales in comparison to the excitement of giving and receiving smartphones and tablets as gifts, the gift of life insurance can have a much greater impact over time. From gifting an in-force policy to making annual gifts meant to pay premiums, you can have a lasting impact on the financial fortunes of loved ones through life insurance.


Gifting Premiums
Giving annual cash gifts to as many people as you want is a great way to reduce your taxable estate, and by itself it can also provide a means to provide future wealth, especially if those receiving the gifts put it toward insurance on your life that names them as beneficiaries. Note here that you can’t force the gift recipients to buy life insurance. With proper structuring and the help of qualified financial and tax professionals, your gift can help you
leave loved ones a financial legacy after you’re gone.


Irrevocable Trusts
Another way to leave estate-tax-free life insurance to loved ones is to establish an irrevocable life insurance trust, with terms saying your gifts to the trust are for life insurance premiums on your life and for the benefit of your beneficiaries. There will be a cost to establishing this trust, as well as a loss of control outside the trust’s written terms, but this gifting method can help you leave more behind.


Existing Policies
One more way you might consider leaving life insurance to loved ones is to gift an existing policy, either directly to loved ones or to an irrevocable trust for the benefit of the trust’s beneficiaries. This transfer comes full of potential tax pitfalls, which makes working with dedicated professionals essential. For example, transferring a policy whose current value exceeds the annual gift tax limit could trigger taxes. Transferring a policy that has had a loan taken against it can also cause tax complications. Also, beneficiaries may not receive the full tax benefits of the gift of life insurance — or any asset, for that matter — if the transfer occurs less than three years from the donor’s death. Talk to your insurance and tax professionals who can help you to avoid complicated surprises.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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