At the outset of this transaction, Ira Stitz Associates met with the key members of the client's estate planning team (Attorney & CPA) to lay out the options for a troubled policy:
- Make the annual premium of $37,000 and keep the policy in force.
- Allow the policy to lapse.
- Sell the policy in the secondary market and use the settlement proceeds to bolster the cash assets in the client's estate.
Both the attorney and CPA fully supported the life settlement option. Ira Stitz Associates was asked to broker the transaction in the secondary market for the highest possible offer.
The retired phyusician was thrilled with the outcome and stunned that a policy he thought to be "worthless" could have so much monetary value.
If you are an CPA, tax advisor or estate planner and would like to learn more about how life settlements can help address a variety of complex planning challenges for your clients, please contact us. We'd be happy to provide a quick policy analysis.