• Nick Carroll

Legacy Rescue Asset Transfer

Updated: Oct 9

Mary is a lovely 74-year-old widow with two adult children. Both of her adult children are married and have children of their own.




Concern: Mary wants to protect her assets and pass an inheritance to her son and daughter.


Problem: Although she is in good health, Mary is advanced in her age and LTC Insurance solutions are too expensive.


Assets: Her home is worth $250,000 and her savings and investments total $1,210,000.


Solution: Working with her attorney and financial planner, we repositioned $656,000. We used $300,000 to purchase a single premium life insurance policy with a tax-free death benefit of $524,000. We then took $356,000 to purchase a tax deferred annuity, with no market risk and with 100% liquidity, if needed. Both policies were placed inside an irrevocable trust which the attorney established. Should Mary have an unexpected LTC illness, we left $554,000 to help cover the five-year look-back. Upon death: this solution will guarantee over $900,000 will pass to her heirs ($524,000 life insurance and $356,000 (plus interest) from the annuity.


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