Election Matters

What’s Next?

November is election month, which creates an atmosphere of scrutiny around policies that might be included in our President-elect’s administration.  While life insurance is regulated by the government on a state-by-state basis, the federal government can impact life insurance via legislation, economic challenges, or new regulations. 

As we wait for the new administration to take over in January, there are a few steps that can be initiated now to get ahead of the changes to estate planning that are expected to transpire. 

(1) It would be prudent to audit each estate plan for accuracy, based on expected legislative changes.  Under a Republican administration, the estate tax exemption as outlined in TCJA is expected to be extended.  When maintaining a client’s financial portfolio, it is wise to perform regular policy audits on life insurance that is intended to fund the estate tax.  The death benefit amount and performance of each policy should be monitored to verify that the client will have the proceeds that they need to pay the estate tax while earmarking their other assets for other purposes.

(2) The client’s time horizon should be considered.  Short-term goals are considered differently than long-term goals.  In the short-term, life insurance policies might not be needed anymore whereas additional coverage might be needed when planning for the long-term.  If a client has an abbreviated life expectancy, a new look at their estate plan with short-term goals in mind can be advantageous.

(3) Alter estate planning concepts to fit each client’s needs and time horizon, place life insurance policies that will be essential for long-term planning, and consider exit strategies for life insurance policies that are no longer necessary.  Once the best course of action is determined for each client, it’s time to execute the next steps to complete the altered plan.  We believe in the synergy of advisors, working together to build a solid estate plan for each client, and are privileged to be part of the strategizing team for our clients.

Since we spend much of our time working with advisors, many of our new client relationships come directly from attorneys, accountants, and wealth managers. We have gained the trust of these advisors, and in turn have earned the privilege to be of service to their clients.  Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.