Life Insurance

Life Insurance 2017-01-16T17:47:47+00:00

Life Insurance is not Asset Protected in California

Unlike some states that offer complete exemption on life insurance values, Life Insurance only has a maximum creditor exemption of $13,675, as recently updated March 2016 under California exemption law.  Note this protection applies to both cash values during lifetime and death benefit proceeds for survivors.

What would you do if you were sued or had to file bankruptcy today?  Would you lose your policy or benefits?
How would that affect your retirement, business or estate plan?  And what would that do to your family?

SOLUTION:  California law specifically states “death benefits from a private retirement plan are exempt

The Private Retirement Trustsm offers a simple and cost-effective solution that provides exemption of both life insurance policy cash values and death benefits for a multitude of planning needs, without disturbing or forfeiting any of the powerful tax advantages or accumulation benefits.

PRT LIFEsm for Personal Needs

  • Policy Cash Accumulation Values can be fully exempt and protected form creditor attachment, if designated and properly re-characterized for private retirement plan benefits.
  • Policy benefits or loans in the form of PRTsm distributions can be fully exempt from creditor judgment, if properly administrated.
  • Accelerated Benefits from life insurance contracts paid for nursing, home health care or terminal illness are protected from creditor seizure, if designated in the PRTsm Plan agreement.
  • Death benefits paid to PRTsm Plan beneficiaries can be fully exempt from creditors, with proper administration.

PRT LIFEsm for Business Needs

  • Cross-purchase Buy-Sell policies can be owned by a PRTsm and protect not only policy cash values and death benefits, but the business interests the policy proceeds will be used to purchase.
  • Key-Person policies can be owned by a PRTsm with the business as a beneficiary so it can continue operations with fully creditor protected cash flows.
  • EOLI (Employer-Owned Life Insurance) with failed 101(j) Notice & Consent administration can be rescued by transferring ownership to a PRTsm, and thereby avoiding potential unnecessary income taxation of death benefits to a business.
  • 409A Non-qualified Deferred Compensation Plan policies may be exposed and lost to corporate creditors, and can be rescued by transferring ownership to a PRT.

PRT LIFEsm for Estate Planning & ILIT Solution

  • We’ve invented PRT Split Dollarsm where (1) policy cash values are owned by the PRTsm and fully creditor protected and (2) death benefits are owned by an ILIT to keep proceeds outside the taxable estate to avoid estate taxation while providing liquidity for asset transfer or wealth preservation needs.

Call us today 800-730-3020 to get your FREE PRT Diagnosticsm & Asset Protection MAP.

Maximum Values & Greater Benefits for Minimal Cost