AALU: Better Together – The Importance of Collaboration Among Client Advisors When Acquiring Life Insurance (With Case Study)

The purchase of life insurance products and their implementation into a client’s broader legacy planning strategy requires clients to navigate through a complex web of financial and cashflow management strategies, transfer tax considerations, and tax reporting obligations that must be approached differently on a client by client basis.  Failure on the part of advisors to work together can result in avoidable planning gaps, most notably: (1) inability to fund premium payments on a sustainable basis; (2) inefficient use of lifetime estate, gift and GST tax exemption; and (3) poor product maintenance leading to negative outcomes. 

Previous reports have covered the many reasons why clients should use life insurance as a part of a comprehensive legacy plan to preserve wealth and family harmony among future generations.  This Report focuses on the importance of collaboration among advisors in implementing insurance based legacy planning. 

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