Survivorship Planning

If your goal is to preserve your wealth after your death, you need a clear and well-thought-out strategy. Survivorship policies which are sometimes called second-to-die policies can help you turn this strategy into action.

These policies insure two people, paying out after both insureds have died. The insured couple makes a deposit each year ― a predetermined amount based on their health ― until both have passed away. Upon the second person’s death, the policy’s beneficiaries split the investment on a tax-free basis.

Survivorship policies can be guaranteed, regardless of changing interest rates or stock market performance, if payments are made in full and on time.

Survivorship policies are helpful in several circumstances for couples who:

• Have purchased term life insurance or have no life insurance at all and want to find an alternative to the premiums or expensive conversion options.
• Wish to spend their retirement accounts freely, yet still leave a nontaxable gift to their heirs and/or fund a trust.
• Want to augment their children’s inheritances with an additional, nontaxable gift.
• Have a child with special needs who want to secure funds for their children’s care after they are gone.

If you are wondering whether a survivorship policy is the right choice for your situation, TR Estate Planning can help you decide. Contact us today, or read more about how others have include this option in their estate planning in our Survivorship case example.