Life Insurance as a Hedge and Other Needed Changes in our Perceived Rules of Thumb
After a summer hiatus, the Utah Valley Estate Planning Council is pleased to return to its regular programming for the fall. We will continue to meet on the first Wednesday of every month, so our next event is two weeks from today, September 5th. More details will follow soon.
For now, please note the speaker and a change in location:
Jim Gulbrandsen of Kingsbury Wealth Strategies, LLC will be our speaker. Jim is a very accomplished attorney and wealth advisor, and he will address the Council on hot-button issues relating to life insurance planning, both from the perspective of the insurance company and their policy documents, and the legal drafting to implement the plan. (More detailed preview located below)
Our event this month will be at Carrabba's Italian Grill in Orem, UT. Address is 683 E. University Parkway. Lunch will begin at 11:30, as usual, and the speaker will begin at 12:00. Please RSVP to confirm your attendance.
We hope to see you there, with your full summer tans!
Fact: Crediting rates on many older life insurance policies have started to approach guaranteed rates;
Fact: Most of our cherished estate planning techniques were designed for inflationary environments;
Fact: We have experienced asset value deflation, challenges in borrowing for required liquidity, and a postponement of many of our anticipated liquidity events;
Fact: Our clients struggle to find decent cash flow returns without taking long term risks relating to future interest rate increases;
Fact: The insurance industry, like all financial groups, would have us believe they have extraordinary abilities to react to these challenges, providing almost immediately new solutions to our clients’ needs.
Fact: Many of the ‘hot” new recommended insurance solutions carry financial and tax risks which are generally not being adequately disclosed.
Fact: There are in fact some wonderful new solutions if we change our perspective to match the changed environment.
Question: How do we know which is which?
James Gulbrandsen started practicing estate planning law thirty five years ago with the prestigious Chicago law firm, McDermott, Will & Emery. During his years of practice he became certified as a specialist in estate and probate law in Texas and headed the estate planning practices of major law firms in Dallas and Phoenix. His clients include many of the wealthiest families in the country.
While practicing law in Dallas in 1988, he successfully planned the Estate of Faye Brogan, the IRS national test case on discounted valuation of family limited partnerships holding only marketable securities (unreported because settled). In the early 1990’s, he also helped design the technique commonly referred to as the tax-free installment sale to defective grantor trusts, a few years later creating the cascading installment sale technique.
In 2001 he developed new techniques utilizing sophisticated investment hedging strategies in estate planning and probate work. Trusts & Estates magazine published his article on the topic. The strategies are designed to protect assets successfully transferred to younger generations from the vagaries of the market. He has published several other tax articles in Trusts & Estates magazine.
He has recently designed new strategies to provide a safety hedge for estate planning techniques using specially designed life insurance, and to provide liquidity until family asset values rebound in this unusual financial market. His recent analysis of the design of indexed universal life insurance policies has resulted in several of the largest insurance companies making significant adjustments to their product designs.