Thanksgiving is a time to gather with family, recognize the good in our lives, and express gratitude. It’s also a good time to help clients see that being thankful for family can mean taking steps to help protect their loved ones’ financial futures.
Thanksgiving brings families together, providing a perfect opportunity for clients to think about how they want assets to be distributed in their estates. The holiday gathering can serve as a reminder of the importance of planning to ensure that their loved ones are taken care of when the time comes. Discussing these plans during a time of togetherness can make the conversation feel more natural and less daunting.
Nonqualified Annuities: A Strategy for Estate Planning
A well-thought-out plan can help turn assets into a lasting financial legacy. Estate planning can help ensure that financial resources are used according to your clients’ wishes. One potentially effective tool is a nonqualified deferred annuity, which is designed to help clients save for retirement and generate income. Additionally, it offers options for how the remaining balance is distributed.
Clients can put in place a plan for distributing annuity assets by using a predetermined beneficiary provision annuity stretch option, which can help manage tax burdens for beneficiaries. This option allows beneficiaries to spread out withdrawals over time, paying taxes only on the amounts withdrawn rather than on a lump sum. Spreading withdrawals over time also can be particularly helpful when a client is concerned about a beneficiary’s ability to manage a large lump-sum inheritance responsibly.
In some cases, you may have clients who do not need the income generated by the annuity. In such scenarios, they can choose to distribute the entire annuity value as a legacy to their beneficiaries, which helps ensure their loved ones receive financial support.
Guiding Clients’ Legacy Goals
When discussing legacy planning with clients, consider what they want to achieve. Ask them to reflect on how they would like to be remembered and the positive outcomes they hope to see. This can include leaving money to favorite charities or ensuring that their assets are distributed according to their values and wishes. Encourage them to have open conversations with their families about these goals to ensure everyone understands and respects their wishes.
Help Clients Ensure a Financial Legacy According to Their Wishes
Legacy planning doesn’t have to be daunting. Thanksgiving is the perfect time to reflect on these important decisions. With planning and the right strategies, you can help ensure clients have income for their own needs while also distributing assets according to their wishes for their families’ futures and their legacies.
ACTIONS YOU CAN TAKE RIGHT NOW
- Find clients likely to have wealth to transfer.
- As the holidays get underway, reach out to remind them that with family gathering together, it’s a good time to talk about estate planning.
- Talk to clients about whether a nonqualified annuity might help in their estate planning.
For more information about retirement-planning, please contact our Retirement Strategies Group at RSG@PacificLife.com or (800) 722-2333, ext. 3939. PacificLife.com
Annuities are long-term contracts designed for retirement.
This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time.Pacific Life, its affiliates, their distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
This material is educational and intended for an audience with financial services knowledge.
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Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.
Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company.
The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
For financial professional use only. Not for use with the public.