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Estate Planning

Estate planning is a category of professional service that aims to optimize the transfer the net worth from a person who passes away to intended recipients or beneficiaries. The purpose is to maximize the wealth that is passed on to the heirs. Wealth maximization can be achieved by: reducing federal, state and inheritance taxes; minimizing or eliminating probate costs by making clear who gets what and who is in control of distributing assets, and; ensuring that enough money is set aside to pay for the various attorney, court, executor and accounting fees. Estate planning also takes into account donations to charity and the manner in which funds may be distributed to charities.

SOA Offers Consumer-Oriented Content for Retirement Decisions

The Society of Actuaries (SOA) just published a series of short whitepapers or “briefs” that focus on some of the major decisions that are encountered by retirees.

This is a great resource for consumers who are seeking objective content produced by experts.

The Society has clearly made efforts to create content that is accessible to a non professional audience.  The briefs are clear, short and focus on consumer-relevant topics such as “when should I retire.”

There are 11 briefs, and the topics include:

Low Interest Rates Provide a Favorable Environment for Wealth Transfer and Estate Planning

In a recent article, Wall Street Journal columnist Jason Zweig discusses estate tax planning strategies that are especially attractive given the current low interest rate environment.

Zweig discusses the ability of parents to loan money to children for nine years at a fixed IRS determined interest rate (currently 2.63 percent).

West Coast Life

West Coast Life Insurance Company was started in 1906 in San Francisco with industry veteran Dr. George A. Moore as the president of the company. In 1997, West Coast Life Insurance Company merged with the Protective Life Insurance Company and now it operates as its subsidiary.

West Coast Life offers term life insurance, universal life insurance, survivor life insurance, and annuity products to individual customers. The description of their products is as follows:

Grantor Retained Annuity Trusts at Risk

The status of grantor retained annuity trusts ("GRAT") is uncertain as a result of a bill that was recently passed by the House of Representatives.

According to Investment News, "the Small Business and Infrastructure Jobs Tax Act of 2010 would impose a 10 year minimum for estate planning vehicles and would bar "zeroed-out" GRATS."

NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive financial planning services on a fee-only basis.

NAPFA member David B. Jacobs serves as a representative for this interview.  David serves on the committee for both the School of Retirement and the School of Risk Management for NAPFA University.

Annuity Digest: Please tell us a bit about NAPFA and how the organization serves financial services consumers.

Southern Farm

Farm Bureau Insurance offers its customers insurance policies and financial planning. These include: permanent life, term life, other insurance, auto, homeowners, retirement planning, estate planning, and business planning. Some product descriptions include:

1) Whole Life: Whole life insurance is the most common type of permanent insurance. The policy provides a guaranteed death benefit along with guaranteed cash values. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis.

Principal Financial

Principal Financial Group was founded in 1879 and is headquartered in Des Moines, Iowa. Principal Financial provides individuals, business, and institutional clients a range of financial products and services that includes life insurance, annuities, retirement solutions, banking, group insurance, estate planning, disability insurance, business banking and mutual funds. 

Northwestern Mutual

Northwestern Mutual is a mutual insurer that has been in operation since 1857. Northwestern Mutual offers products and services in the areas of insurance and investments. Specifically, the company offers products in the areas of life insurance, disability insurance, annuities, long-term care, mutual funds, financial planning, estate planning, trust services and other investment advisory services.

Guardian Life

Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. Guardian and its subsidiaries had $41.3 billion in assets. Guardian provides services in insurance, retirement, investing, education funding, estate planning, and employee benefits. Description of company products below:

Acacia Life

With national headquarters in Bethesda, Maryland, the Acacia Group, a UNIFI Mutual Holdings company, provides life insurance, annuities, mutual funds, investments, and financial planning.

Additional UNIFI companies include Acacia Life, Calvert Investments and Acacia Federal Savings Bank.

Acacia Life provides life insurance and annuities to individuals, families and businesses.

Brief descriptions of UNIFI product areas include:

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