CPA & Estate Attorney Endorse Selling Their Client's $1 Million ILIT Policy
77 Year-old Retired Physician Thought His Policy Was "Worthless"
$1 million ILIT policy became irrelevant for client's estate plan
Premiums had increased to nearly 4% per year
Troubled policy was underperforming; cash depleted to $1,000
$37,000 annual premium was coming due
Ira Stitz Associates recommended life settlement
Attorney & CPA agreed selling policy the best option
Client was delighted to receive $180,000 cash settlement
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.
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Ira Stitz Associates is a boutique financial services firm that concentrates in estate planning and wealth preservation for high net worth individuals and their families regarding their distinctive needs. Ira Stitz founded the company in 1990 and still retains the same passion and enthusiasm as he did on the first day he put the keys in the door.