Cascading Wealth

The ability to use a Universal Life Plans to not only transfer tax-free death benefits but also tax-free cash values allows the transfer of assets between generations. The strategy is to name a contingent owner on the policy of a Joint Last-To-Die or Multi-Life policy. This allows the cash value to be passed to the contingent owner upon the death of the initial owner without taxation. In turn, the new owner can name a new contingent owner, which continues the strategy.

It is important to seek Professional Assistance prior to implementing this type of planning.