Sample Cases

Graphic Illustration

See Notes Below

The results of this conversion are that it:

(1) Immediately creates a substantially larger estate;

(2) Terminates the continuing buildup of income tax liability in the asset;

(3) Creates an income source to pay the current tax liability on the asset;

(4) Can protect the enhanced estate value from estate taxes through an irrevocable trust or gift to heirs.

The bar chart illustrates from 4 to 2 times the net to heirs compared to the existing deferred annuity, depending on the year of death.

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