ESTATE PLANNING BASICS. Be prepared for all their estate planning needs. FOR INSURANCE PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION WITH THE PUBLIC

Transcription

1 ESTATE PLANNING BASICS Be prepared for all their estate planning needs. FOR INSURANCE PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION WITH THE PUBLIC

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3 With the recent changes in the federal estate and gift tax law, it s now more important than ever for your clients to have an up-to-date estate plan. Count on the Advanced Consulting Group at Nationwide to help you anticipate and manage every detail of the estate planning process. What you ll find in this brochure In order to create a successful estate planning strategy for your clients, you ll need a better understanding of the following things: Who makes a good candidate 4 What an estate planning strategy can help them accomplish 5 How changes to estate tax laws can affect them 6 The strategies available 7 How Nationwide can support you 8 The steps you ll need to take to get their plan in place 10 3

4 Who s a good candidate for an estate planning strategy? Clients who need an estate planning strategy come in all shapes and sizes. In general, look for clients who: Are over age 59½ Are looking to generate wealth for the next generation Already have more than enough funds for their retirement needs Have established enough wealth and want to preserve it Keep in mind that some clients could fall into any or all of these categories. Regardless of your clients particular situation, your goal should remain the same: to help them discover opportunities that can help them better define their capabilities and potential for enhancing their wealth. Just remember that Nationwide and its representatives do not give legal or tax advice. These laws are complex and subject to change, so your clients should consult a tax or financial advisor for answers to specific questions. Also, these strategies will require the assistance of a qualified estate planning attorney. 4

5 What do estate planning strategies help them accomplish? The point of these strategies is to help efficiently transfer money and/or assets from one generation to the next. Estate planning strategies offer clients the opportunity to leave more than just money behind at death they give clients the chance to leave a legacy and to make the most of the gifts they pass to the next generation. Upward of $8 trillion The estimated amount of inheritance boomers stand to receive over their lifetimes 1 1 Inheritance and wealth transfer to baby boomers, MetLife Mature Market Institute (12/10). 5

6 How changes to the estate tax laws can affect your clients Recently, there has been a lot of uncertainty surrounding estate tax and many people have developed a wait and see approach to planning. This approach has caused speculation and hesitation on behalf of planners everywhere and, more importantly, has hindered clients ability to develop and implement strategies for estate planning. But the enactment of the American Taxpayer Relief Act of 2012 means the wait and see is now over. For the first time in years, clients have some certainty about the future of the federal estate and gift tax law and can focus on reviewing and updating their estate plans. Having the right plan in place will give your clients a better chance to create, enhance or preserve their estates. 6

7 Available strategies There are many estate planning strategies designed to create, enhance or preserve your clients wealth. Some methods involve the use of a trust and/or a life insurance policy such as: Irrevocable life insurance trust (ILIT) B or credit shelter trust Single-owned survivorship (SOS) trust Other strategies include trusts designed with a charitable intent such as a charitable remainder trust (CRT). Others don t require the use of a trust at all; they simply include taking advantage of favorable available tax law, like an extended individual retirement account (IRA). Finally, some strategies involve the use of products that prolong or diminish the effect of taxation on certain assets. This is called strategic repositioning of assets. No matter what your clients needs, the Advanced Consulting Group can help you develop the best strategy and determine each step they ll need to take to put the plan in place. 7

8 Other ways Nationwide can support you The support you ll receive from us goes beyond plan design. From marketing materials and sales assistance, to illustration preparation and product consultation, we re here for you every step of the way. 8

9 Underwriting We provide access not only to your underwriter, but also to the Underwriting director and management, to ensure a quick issue time. Sales support The Nationwide Sales & Service Center provides 24-hour-a-day, 7-day-a-week access to tools that can help you build and manage your business. SALES SUPPORT TOOLS Get marketing materials and applications PENDING CASE UPDATES Check the status of pending cases, including any needed requirements Materials to help you sell CLIENT PIECES No matter which strategy is right for your client, you ll have everything you need to present the concept with confidence SALES IDEAS A mixture of tactics to help you introduce the need for estate planning, discuss advanced sales concepts and how our products may help ADVANCED CONSULTING GROUP LITERATURE A variety of white papers, seminars and brochures to help with advanced cases SEMINAR INVITATION Present the topic of estate planning to a crowd rather than to one client at a time Not all of these materials are available for every state or firm, so please contact your internal wholesaler for details. 9

10 Getting their plan in place Once you have a prospective client in mind, you can use the following outline to help walk you through the sales process: Prior to your first meeting Send your client the estate planning client brochure; it outlines the basics of estate planning strategies and helps demonstrate the need for a plan. It also contains a checklist to help them gather all of the documents you ll want to review during the first meeting. First meeting During this meeting, it s important to determine what goals your client would like their estate plan to accomplish. To do this, you can: Complete the fact finder Review the documents your clients brought along to the meeting Review and confirm their estate planning goals Estate Planning Client Brochure LAM-1517AO Develop proposals Use the completed fact finder as your guide for data input Call the Advanced Consulting Group if you d like to talk to a specialist about your case Run the proposals that are appropriate for your case Fact Finder LAM-1574AO 10 As your clients personal situations change (e.g., marriage, birth of a child or job promotion), so will their life insurance needs. Take care to ensure this product is suitable for their long-term life insurance needs. They should weigh any associated costs before making a purchase. Life insurance has fees and charges that vary with sex, health, age and smoking status. Riders that customize a policy to fit individual needs usually carry an additional charge.

11 Follow-up meeting(s) This may be one meeting or a series of meetings. It all depends on your clients, the way they make decisions and the solution they choose. Present the proposal Use the action plan on page 13 to help you get the plan in place: Coordinate with estate planning attorney on legal documents Complete life insurance applications as necessary; for trust-owned life insurance, be careful of your timing to help make sure it remains outside the estate Clients must first execute the trust document The trustee may then apply for the life insurance, being sure to submit the trust agreement for underwriting purposes Make sure the trustee signs in his or her capacity as trustee Help the estate planning attorney organize any account ownership or beneficiary changes so they coordinate with the new estate plan; these may include: Naming the trust as beneficiary of IRAs or existing life insurance Balancing the estate through ownership changes either changing jointly owned property to individual ownership or transferring ownership of individually owned property from one spouse to the other Review and modify Let your clients know you ll want to review their estate plan every three to five years, when their personal or financial situation changes and if tax laws change. 11

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13 Action plans ESTABLISHING AN ESTATE PLAN ACTION ITEM WHO IS RESPONSIBLE? TARGET DATE FOR COMPLETION NOTES Review your plan for retirement Agent and client Determine where your retirement income is coming from Agent and client Determine how much additional income you need Agent and client Determine if you ll have excess income Agent and client Review your existing insurance plans Agent and client Address your need for long-term care coverage Agent and client Consult with your attorney about your estate planning need Attorney and client Complete new life insurance application Agent and client Get medical exam for life and long-term care insurance Client Create wills and trusts, including irrevocable life insurance trust Attorney and client Align policy ownership and beneficiary designations to reflect estate planning goals Agent and client Deliver life insurance policies Agent Pay first premium Client Conduct annual review Agent, attorney and client 13

14 You ve got an opportunity to help your clients with estate planning and promote your services at the same time. The Advanced Consulting Group at Nationwide can help ensure you know exactly what to expect every step of the way. For more information or to discuss a specific case, call us today at: National Sales Desk: Brokerage General Agents (BGAs): Nationwide Financial Network:

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16 FOR INSURANCE PROFESSIONAL USE ONLY NOT FOR DISTRIBUTION WITH THE PUBLIC Products underwritten by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company Nationwide. LAM-1516AO.2 (10/14)