Aventura News Jul.29-Aug.4 2009
By Jon Kidd and Keith Owen

Imagine you were informed that, thanks to a close relative, you had inherited millions of dollars worth of Coca Cola stock certificates that had been lost in the attic for decades.  Since this “negotiable instrument” belongs to you, would you climb up into the attic to get it and immediately enquire as to its value?

Forgotten or unrealized assets are surprisingly more common than people think.  Many families have not liquidated their bonds or stock certificates due to a lack of communication from generation to generation.  Life insurance premium financing creates a very similar scenario by tapping into an unrealized asset we call “insurable net worth”.  A life insurance policy is an asset just like a house or car.  You may qualify for a loan that pays the annual premiums, just like a mortgage or car loan, except the interest and payments may be accrued into the loan.  Interestingly, the policy value itself typically repays the loan for those of age 70 and over.

5 Common Questions

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Aventura News Apr.29-May.5 2009
by Keith Owen

The estate tax is currently scheduled to be repealed in 2010 (i.e., zero tax). However, President Obama’s new budget calls for estates valued over $3.5M ($7M for married couples) to be taxed at a rate of 45% next year and beyond. Given that these are also the current 2009 levels, the new administration argues that there is no estate tax increase. Which view do you take on this? (A) The proposed estate tax is not an increase because it mirrors 2009; or, (B) The proposed estate tax is vastly greater than the scheduled repeal of the estate tax in 2010. Some argue that this proposal signifies the largest estate tax increase in U.S. history. In all fairness, the current proposal is more favorable to consumers after 2010.

An increasingly popular estate planning tool that many people are still unaware of is premium financing for life insurance. Those that may qualify for premium financing for life insurance are individuals between the ages of 70 and 85 with a net worth of at least $1 million.

4 Key Reasons to Consider Premium Financing:

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