Protecting A Legacy For Your Client’s Heirs

by Eloise Glaspie Life Sales Consultant, CLU, ChFC

People who have accumulated wealth during their lifetime often want to leave a legacy for their heirs and pass assets on to their children or grandchildren. At the same time, they want to ensure the inheritance will last and won’t quickly be squandered. Clients often wonder if there is a way to protect their legacy while providing for those they love. A spendthrift trust may offer just the benefits they’re looking for.

Spendthrift trusts are usually established with the object of providing a fund for the maintenance of another person, known as the "spendthrift," while also protecting the trust against the beneficiary’s inability to manage financial affairs. It allows the beneficiary only limited access to the rights of the asset. If your clients have children and are concerned that they may squander their inheritance at the nearest sports car dealer, advise them to consult with an attorney about the potential benefits of a spendthrift trust.

You may find clients whose family dynamics are consistent with the description above, but there will not be enough inheritance to protect the spendthrift’s lifestyle. In these circumstances, a life insurance policy on the life of the parents can provide secure funding for the spendthrift trust.

Conducting beneficiary reviews provides an opportunity to begin an in-depth discussion regarding clients’ wants, needs and fears. Beneficiary reviews open the door to new sales, as clients will more readily disclose their full suite of assets and life insurance products when they perceive value in your service and advice. During the review, look for recent and upcoming life events that can trigger a life insurance discussion such as job changes, recent or anticipated inheritances, divorce or death in the family, etc. Life events happen every day to your clients and prospects, but most individuals probably don’t take the time to think about how it impacts their insurance needs.

How does this knowledge help you sell? By understanding what may be going on in your clients’ lives, you are better equipped to be a valuable resource to them in planning for a successful transfer of wealth. Call your Life Sales Consultant today to request a Beneficiary Review Kit.

FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 11530 - 2011/2/4 | 17524 035141 Agents may not give tax, legal, accounting or investment advice. Individuals should consult with a professional specializing in these areas regarding the applicability of this information to his/her situation.