The Strategy

The Concept

The Strategy

"The Catalyst concept concentrates on a specific asset and
illustrates how repositioning that asset can immediately create
a substantially larger benefit to clients and their heirs."

The Catalyst focuses not only on transferring your clients' wealth to their heirs, but also preserving the value of the asset from deferred tax liabilities, specifically income in respect of decedent (IRD) and estate taxes, as well as possible long term care costs.

The steps taken to facilitate the transfer and preservation of the asset are:

(1)

Create an income stream to generate annual payments to the client;
(2)

Use part of the annual payment to pay income tax;
(3)

Purchase a life insurance policy that will cover the projected

after-tax value of the would-be asset in 20 years; and
(4)

(if desired) Purchase a long term care insurance policy

from the remaining annual payment.

The advantages to your clients are that: (1) the greatest possible amount of accumulated wealth is transferred to their heirs, and (2) it provides peace of mind about future long term care costs. They are provided an income-tax-free benefit to help pay estate expenses and are able to stay independent to protect the savings they've built.

The concept is presented in a dynamic two-page illustration that is simple to understand and easy to sell.

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