Once a person reaches age 70, the IRS imposes rules on accounts that contain money that has never been subject to income taxes. You are required to begin what are known as Required Minimum Distributions, or simply RMDs. We have done several client seminars lately where I bring up the subject of RMDs and it never ceases to amaze me at how many clients are taking RMDs and simply depositing them in the bank or spending them on “don’t really know”. When this is the case with amounts over $5 or $10 thousand, call us to design a strategy to systematically move the RMD into a life insurance policy. This is almost always Excess Capital that will, hopefully pass to your heirs.

With proper design, we can help you turn that unwanted distribution into a substantial value to your heirs in the form of an increased income source for you should you ever need long-term care. The real beauty here is that all those taxes that were paid when the withdrawals were made will end up being recaptured by you or members of your family. Call or send an email for more information and a illustration how it would work for you.