TrustGuard Gold Estate Planning Trust

Transcription

1 SM TrustGuard Gold Estate Planning Trust A Legacy Protection Plan Protect Your Family Protect Your Money

2 Your golden years are supposed to be worry-free a hard-earned time for you to concentrate on yourself

3 You ve spent your entire life working diligently to grow your assets and safeguard your family. You may have purchased traditional life insurance to preserve your legacy, and you may have protected your money in an annuity, savings account or CD. Undoubtedly you ve spent a lot of time preparing for your retirement. Your whole life you ve anticipated the possible, so why not plan for the inevitable? The TrustGuard Gold SM Estate Planning Trust can help you set aside funds for your final expenses and leave a legacy to your loved ones. This comprehensive plan offers unique protection by combining whole life insurance and a trust that can help you: Ensure funds are available to help pay for your funeral without having to make detailed plans with a funeral provider. Leave a legacy to your named beneficiaries, including a charitable organization or religious institution. Protect your assets from creditors like hospitals, nursing homes and banks, and exempt your money from Medicaid limits, after five years. You may also have additional peace of mind knowing that: Policy benefits continue to grow income tax-free. Policy death benefits are income tax-free to beneficiaries. The trust avoids typical probate processes. The life insurance policy is guaranteed-issue everyone qualifies up to age 99. The Trust Guard Gold plan is a permanent assignment. Once assigned, the policy cannot be surrendered and policy loans are prohibited. Medicaid rules, as well as their interpretation and application, vary by state and the ability to qualify for a state and/or federal public assistance program IS NOT guaranteed. You should always consult an elder-law attorney or a financial advisor who is knowledgeable in this area on your state s specific rules pertaining to irrevocable assignments, Medicaid eligibility and on using a trust to protect your assets. The applicant s individual circumstances at the time of application for government assistance will, in part, determine whether or not the policy will count as a resource. The judgment of the case worker handling the application will also be a factor. Growth is not guaranteed. Tax-free by IRS code section 0A.

4 Protect Your Family Few people have the resources necessary to pay for a funeral on short notice. And paying for your final expenses could place a significant financial burden on your loved ones. The TrustGuard Gold plan can provide the confidence of knowing that you have funds set aside for your final expenses. This portable plan can be used with any funeral provider, so you don t have to worry about committing to a particular establishment. Once the claim is filed by the funeral provider, it is typically paid within 48 hours. Your loved ones will have funds available to help pay for your funeral during their time of grief, which is especially important given the cost of funerals. Average Funeral Costs Typical Funeral Expenses Consider: The national average cost of a funeral is around $8,343. Additional expenses for flowers, monuments and a burial plot could raise the total costs to more than $,000. This expense could detract from your legacy or your loved ones might have to fund it with their personal savings, credit cards or a loan. Price Services fee $,975 Preparation of the body $90 Use of facilities/staff $895 Transportation services $70 Basic memorial printed package $50 Casket $,395 Vault $,98 Total cost of an average funeral $8,343 Burial plot and cemetery fees $,000 Monument and flowers $,360 Estimated cost $,703 Around 43% of individuals in the US choose to be cremated rather than buried in a casket. 3 Direct cremation costs, without a service or memorial, are typically $,000-$4,000, 4 and could cost as much as a traditional funeral, depending on your final wishes. Since the TrustGuard Gold plan DOES NOT involve a contract to purchase any funeral, burial and/ or cremation-related goods and/or services, it may be used at any funeral provider. 0 NFDA General Price List Survey. (te: This survey is not conducted annually.) 3 Cremation Facts, Cremation Association of rth America, nfda.org, as of June, How Much Does the Average Funeral Cost? Mike Testa, FuneralTips.com, as of June, 04. 3

5 Protect Your Money With the TrustGuard Gold plan, the ownership of your life insurance policy is irrevocably transferred into a trust and becomes an asset of the trust rather than an asset in your name. Therefore, the value of the policy may no longer be accessible by creditors, such as hospitals for medical bills or nursing homes for long-term care, after five years. Funds immediately available to pay for final expenses. Proceeds avoid probate process? Provides federal income tax-free death benefits? TrustGuard Gold Estate Planning Trust Savings, CD Yes Funds typically paid to Funds typically funeral provider within have to go through 48 hours of claim. a probate process. death certificate required Death certificate in most states. required. Traditional Life Insurance Policy Beneficiaries are typically required to present a death certificate, and do not typically receive payment for days. Annuity Payment could take days from death notification. Death certificate required. Yes Varies Yes Yes Varies Yes Yes Stocks, Bonds, Mutual Funds Beneficiaries do not typically receive payment for days. Death certificate required. Protected from creditors and lawsuits? Protected from Medicaid spenddown? Yes Typically after five years, but varies by state. Yes After five years Varies by state Varies by state Unless held in an irrevocable trust that satisfies all applicable requirements. Varies by state The money in your savings, traditional life insurance policies, annuities or investments could be vulnerable. Funds set aside for your funeral planning could quickly disappear if you need to pay for long-term care. Ensure Your Money Goes to Your Loved Ones Money left in your savings account might also be subject to probate or creditors upon your passing. Depending on the beneficiary, the TrustGuard Gold estate planning trust plan automatically transfers any funds remaining after payment for your funeral expenses to your named beneficiaries upon your passing. This money could be used to leave a legacy or pay off outstanding debt without the typical delays of a probate process. Consider: At least 70% of people over age 65 will need long-term care services and support at some point in their lifetime. 5 The national average cost of a home health aide is $30,40 per year. 6 The national average cost of a private room in a nursing home is $8,440 per year Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, September 03 6 U.S. Department of Health and Human Services data from , Paying for Long Term Care. Costs are based on, 30-day monthly periods. 4

6 A Comprehensive Protection Plan The TrustGuard Gold plan is whole life insurance, available to age 99, with an estate planning trust. Your insurance coverage can be purchased using money held in a savings account, a withdrawal benefit from an annuity or by transferring the cash value of an existing traditional life insurance policy. You can purchase a policy for as little as $,500 up to a maximum of $00,000. Trust Administration is Free There are no administrative fees associated with the estate planning trust portion of the plan, now or in the future. Once you irrevocably assign ownership of the life insurance to the trust, and depending upon the beneficiary designation: The death benefit will be used to help pay your funeral expenses with any funeral provider, and is typically paid within 48 hours of a claim being filed. Remaining value is passed as a legacy to your named beneficiaries, including charities or religious institutions, avoiding probate. Death benefit is tax-free. The value of your policy may be protected from creditors like hospitals, nursing homes and banks, after five years. The process is simple and can be completed in a few easy steps Purchase Life Insurance TrustGuard Gold Whole Life Insurance Use money from savings, CDs, annuities, investments or paid-up life insurance to purchase coverage. Irrevocably Assign Life Insurance Ownership Irrevocably Assigned to Trust Death benefit may grow. Protected funds earn interest tax-free until time of need. 3 Trust Funds Dispersed Claim Typically Paid to Funeral Provider within 48 Hours Excess Funds Paid to Named Beneficiaries 3 Rest easy knowing your money and legacy are protected and you have set aside funds which may be used to help pay for your final expenses. Varies by state. Growth is not guaranteed. Tax free by IRS code section 0A. 3 Some restrictions may apply. 5

7 Rounding Out Your Planning w that you have the satisfaction and peace of mind of setting funds aside for your final expenses, you may wish to capture your final wishes and preferences in a journal or planning guide for your family. This ensures your family won t be required to make decisions during a highly emotional time and there s no second-guessing what you would want. Backed by the financial strength of an A-rated life insurance company, Forethought s TrustGuard Gold plan can help you protect your family and your money. CREATE CERTAINTY BY SETTING ASIDE FUNDS TO HELP PAY YOUR FINAL EXPENSES WITH THE TRUSTGUARD GOLD PLAN. TALK TO YOUR FINANCIAL SERVICES PROFESSIONAL TO LEARN MORE. Rating applies to the financial strength of the issuing company and does not apply to any specific product offering. Forethought Life Insurance Company subscribes to A.M. Best s rating services, A- Excellent (4th highest out of 6). Rating is as of January 9, 04. 6

8 About Forethought Life Insurance Company Forethought Life Insurance Company provides a full suite of annuities and a leading preneed life insurance platform to help solve the pre-retirement, retirement and end-of-life challenges facing Americans today. A targeted strategy delivers multifaceted product lines to customers through key distribution relationships across the country. Experienced leadership and financial discipline underlie strong growth and success in the marketplace. Forethought is a subsidiary of Global Atlantic Financial Group Limited, a multi-line insurance and reinsurance company with over $30 billion in assets and 0 offices. Global Atlantic was founded at Goldman Sachs in 004 and separated as an independent company in April of 03. Forethought Life Insurance Company One Forethought Center Batesville, IN (800) [email protected] The Forethought TrustGuard Gold SM Estate Planning Trust is provided by Forethought Life Insurance Company, Indianapolis, Indiana. M855 (-4) 04 Forethought forethought.com