Reduce or Eliminate Estate Taxes

Educate Clients in Less than One Minute

Our Estimator is designed to visually show your clients the impact of the death tax on their families, quickly.  On just two simple pages they will clearly see what’s coming at them!  You can then guide them toward the most efficient tool to pay the tax: a fully guaranteed and tax-free life insurance policy, owned by an ILIT.

Simple Yet Flexible

Download a sample of the most common version of our Estimator.  As you can see, it immediately shows your clients how their tax liability steps up on 1/1/2026.

Let’s create a custom Estimator for each of your high net-worth clients.  We can easily incorporate their assumptions about estate growth and inflation.  If you like, we can add columns that incorporate a client’s anticipated spending and charitable giving plans.  Deploy our Estimator to start conversations about tax-free wealth conveyance strategies you are uniquely qualified to deliver.

Background: Changes to Estate and Gift Taxes

The high estate-and gift-tax exemption expires at the end of 2025.  This change will require millions of additional taxpayers to plan for these confiscatory taxes impacting their families immediately after their death.

The federal estate-and gift-tax exemption applies to an individual’s taxable gifts made during life, and assets left at death. Above the exemption, after deductions for items such as charitable bequests, the tax rate is 40%.  Some states layer their own death taxes on top.

Many of your wealthy clients’ families will have to come up with millions of dollars to pay the tax, just a few months after their loved one’s death.  What is their current plan to pay the tax when the IRS comes calling?

Unique Opportunity 2018 – 2025

As part of the 2017 tax overhaul, Congress roughly doubled the exemption beginning in 2018, adjusting for inflation after that date. For 2023, the inflation adjustment has lifted the exemption to $12.92 million per individual, or $25.84 million per couple.

While the current large gift-and estate-tax exemption is set to expire at the end of 2025, clients can lock in today’s larger amounts by acting now. The IRS has already stated that transfers prior to 2026 will escape tax increases.  Let’s look at an example provided by the Wall Street Journal on P. 17 of their 2023 Tax Guide.

Grandfather Opportunity

Let’s assume Rachel gifted $11 million in 2020 to a trust outside her estate, naming her heirs trust beneficiaries.  This transfer was free of gift tax, because the exemption was $11.58 million in 2020.

In 2026 Congress lowers the exemption to $5 million per person (this amount will be inflation adjusted).  Rachel dies in 2027.  Under IRS guidelines, Rachel’s estate won’t owe tax on any portion of her $11 million gift, even though $6 million of it is above the $5 million limit in effect at the time of her death.

Clients Must Take Action Now

By acting prior to the deadline, Rachel helped her heirs eliminate $2,400,000 in unnecessary taxes (40% of the $6,000,000 she moved out of her estate before 12/31/2025).

Engage your clients while they can still shelter significant assets from the death tax.  Order client-specific versions of our Estimator in advance of all your upcoming appointments with your high net-worth clients.  Start that important conversation, now.

Collaborate with Our Expert

Most of our advisors direct their clients’ investments or focus on tax-efficient retirement income distribution strategies.  Many are not entirely comfortable with advanced estate and gift tax planning.  If that’s you, we have an easy solution: invite our Expert, Tom Lipscomb, to work with your clients on their estate tax mitigation strategies.  Tom works on several dozen estate tax cases at any given time and can easily guide your clients towards a solution that’s right for them.

Opportunities for Financial Advisors

Estate tax planning with life insurance generates some of our industry’s largest and most exciting cases.  How many healthy clients in their 50s – 70s, with a net worth of at least $10,000,000 do you have?  Do they love their families and hate paying unnecessary taxes?

The press will continue to keep changes in tax laws, and the urgency to plan now, in front of your clients.  All you need to do is make sure your clients think of you first when they are ready to take action.

Remind your clients, repeatedly, of the need to take action now, because your competitors will!  Let’s put our heads together and develop a game plan to put you on top of mind with all of your high net-worth clients.  Open significant life insurance cases, with ease!  Connect with your CPS Advantage Marketing Representative or request a callback via email.  Let’s get started today!