# Post Election 2012 – Siblings Add Millions Tax-Free To Their Estate Borrowing Their Parents Lives: David J. D'Arcangelo, The Secret Asset

## Investors are cleaning house after stock market losses of over 40% from 2000-2003 and over 50% from 2007-2009. Investors are now buying lucrative life insurance policies on their parents or grandparents generation and transfering that wealth back to themselves and their Siblings tax-free as beneficiaries

The Secret Asset

Children can multiply the gift from parents or the premiums they pay themselves up to 10 or 20 times, depending on ages, without paying gift, income and estate taxes!

These incredibly powerful words come from David D'Arcangelo, the nation’s leading authority on investment-grade designed life insurance and author of his latest book titled, The Secret Asset published by Redlands Press.

Sometimes people get such a great big benefit from someone, in this case Uncle Sam, it takes a while to sink in. Case in point, the clock is ticking down to December 2012. Everyone could end up paying 35% or greater after December 2012 on any gifts above the exclusion rate which could drop back to as low as \$1 million.

Do the math. Gift whatever amount desired to the children or grandchildren and they can buy a one pay life insurance policy that pays 5, 10, 15 or even 20 times the gift. For example, let’s assume both spouses are 60 years old and the parents make a \$100,000 tax free gift to their children.

The children could turn around and use the \$100,000 gift to purchase a one-pay premium \$1 million life insurance policy on their parents, if they qualify. At completion the children collect \$1 million income and estate tax free increasing their parents gift 10 times tax free.

Don’t have the money or want to gift money to children. That’s O.K. The children can pool their money and pay the premiums themselves and collect the death benefit tax free. In our example above, the children would have to earn \$1,538,461 pretax in the 35% tax bracket to net \$1 million after tax.

Know anyone doing that in this market with their conservative money?

The numbers are compelling. Let’s use the same two 60 year old parents and estimate the benefits based on their gift size:

•Gift \$1 million and the kids can buy a \$10 million policy
•Gift \$5 million and the kids can buy a \$50 million policy
•Gift \$10 million and the kids can buy a \$100 million policy

This is one of the greatest benefits ever designed to create wealth at the next generation and transfer that wealth to themselves tax-free. Children can multiply the gift from parents or the premiums they pay themselves up to 10 or 20 times, depending on ages, without paying gift, income and estate taxes!

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Marybeth Christianson