The Bakers, ages 59 and 57, are still working and are currently in the highest tax bracket. They were seeking ways to reduce their current tax burden. They had accumulated $460,000 in various CD’s and money markets accounts that they wanted to set aside for either future retirement income or for their children’s inheritance. A TRn Legacy strategy providing a cash transfer proved to be a suitable option for the Bakers. Here’s how it worked:
1. The Bakers transferred the assets to TRN Legacy strategy.
2. The TRN Legacy strategy was based on the current value of their assets.
3. The Bakers received an immediate income tax deduction which can save them money on their taxes this year, with a potential 5 year carry-forward.
4. The TRN Legacy strategy plan payments can be utilized to fund immediate life insurance premiums as part of a wealth replacement plan.
5. A portion of the asset was eliminated from their estate.
6. The Bakers recommended their church to benefit from their transaction.
Current Value of Cash Assets $ 460,000
Initial Value of TRN Legacy Strategy $ 460,000
Tax Deduction with TRN Legacy Strategy $ 153,140
Tax Savings at 35% tax Bracket $ 53,599
Immediate Annual Payments for 30
Year Term Certain $ 21,000
Death Benefit from 2nd to Die Life Policy* $2,026,170
A TRN Legacy strategy term certain was issued for the Baker Family that provided an immediate charitable income tax deduction of $153,140, potentially saving them $53,599 in taxes. The TRN Legacy strategy was set up to pay out over 30 years and can be used to fund life insurance premiums that would provide a death benefit of $2.026 million for their heirs. They recommended their church to receive an immediate grant while supporting the charitable works of the legacy strategy. Their plan is re-insured with a major insurance company.