Life insurance and other tax-advantaged vehicles play vital roles in sustaining the legacies created by today’s affluent families. Whether the goal is to ensure that future generations will be secure or to provide for a charity that is near-and-dear to the family, the process of designing and implementing a plan can be complicated, full of traps, and daunting.
Gen Three Partners can recommend practical solutions that will provide clarity and certainty into the estate planning process. These solutions often involve reducing taxes, providing liquidity, and ensuring the proper timing and the amount of distributions to chosen beneficiaries.
The balance sheets of affluent and ultra-affluent families are often a complex interweaving of assets with varying levels of liquidity. Wealth accumulation and transfer strategies typically require time to mature, and as a result, changes in financial circumstances and market volatility can greatly impact wealth creation and preservation.
However, a well-constructed life insurance portfolio can provide an attractive Internal Rate of Return and immediate liquidity to policyholders at the death of the insured. Such a portfolio can help to reduce the volatility of a family's net worth, and act as an important liquidity hedge for wealth transfer strategies that require time to mature.
Furthermore, it can prevent the forced sale of assets to cover estate tax liabilities upon the death of an insured.
Our clients typically use life insurance to achieve one or more of the following objectives:
Create liquidity to avoid the forced sale of illiquid assets when estate taxes are due
Hedge other estate planning strategies that require time to fully realize their benefits
Fund specific inheritances or equalize estates to heir(s) or charitable bequests
Establish significant liquidity and cash reserves within a family’s intergenerational asset allocation
Our services
We provide a variety of services that make a meaningful different in terms of wealth preservation and legacy planning
Multi-Generational Estate Planning
Simplified Legacy Planning
Charitable Giving & Endowments
Individual Policy Audits
Life Insurance for Tax-Deferred Cash Reserves
Long Term Care as an Alternative to Self-Insuring
Your greatest return
Peace of mind & liquidity when you need it most
When all is said and done, our clients are most excited to have ensured millions of dollars of tax-free liquidity, provided to their families when a generation passes. With the loss of intellectual and relationship capital of the patriarch and matriarch, heirs are granted liquidity to handle their estate tax liabilities, and inherently more time to plan how to move forward in the most efficient and productive manner. It is very fulfilling for us to be a part of families banding together through some of the most difficult times of their lives.
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