Contents
Graphic showing how a trust with trust owned life insurance can provide for many future generations.
Purpose
To show how large streams of income can be provided to future generations.
Uses
Although this technique can be used for smaller estates, it is great when a gift equal to the generation-skipping exemption is made to a trust. The trust buys life insurance on the grantor, and subsequently on each income beneficiary. The trust assets grow at each insured's death, providing more income for the next generation.
Sales
Large estates can assure that their heirs will have substantial incomes for several generations. Life insurance on each grantor and each income beneficiary, assures gifts for future generations.
Transitional Uses
Limits may differ amount various states, but this is a simple effective method of transferring wealth.
Appeal
Families trying to assure that al heirs benefit.