To view this email as a web page, click here.                                                                                                    January 11, 2008

A New Chapter in 2008. As we’ve closed 2007 and started 2008, we have much to look forward to in the new year. The Potomac Group would like to share a few announcements and reminders.

After 15 years of service, Gonzalo Garcia has left The Potomac Group to pursue another opportunity with an investment bank. Gonzalo has contributed to the success of our business while performing in a number of significant roles during his tenure and we wish him luck in his new role. Gonzalo’s last day with our organization was January 4, 2008.

Teague Wright, who has played a key leadership role here for the past two years, will assume leadership responsibilities for The Potomac Group. Teague has been actively involved with several of our key strategic initiatives and is well positioned to lead the group moving forward, working closely with our key managers, Liz Weber and Andrea Caruso, and a strong team of professionals.

Finally, as we begin 2008, we encourage you to save the date for our Spring Meeting which will be held at the Ritz Carlton in New Orleans on March 10-11, 2008. We hope you will make plans to join us and take advantage of this unique opportunity to experience the Ritz's genuine Southern hospitality and unique flair. At the same time, you'll learn great new sales concepts from our industry's leaders and have a unique opportunity to network with your peers. Stay tuned for additional details!

Thank you all for a great year. We look forward to working with you in 2008!

Brian Winikoff
President, Crump Life Insurance Services
 

AIG American General
- Unwrap Your Bonus Potential with AIG Select-a-Term
- Life Interest Rate Change

American National
- 2009 Marketing Conference

ING
- ING Life Sales Support Update

Lincoln Life
- Important Information Regarding Qualified Plans

MetLife
- How Does Guaranteed Level Term Stack Up To Its Competitors?

North American Company
- Custom TermUL is Now Available for Conversion

Special Report (December 2007)
-  2007 Year in Review
-  Congressmen Request Treasury Guidance on the Taxation of STOLI
-  The Federal Estate Tax: Senator Indicates Reform Unlikely in 2008
 

Teleconference: John Hancock Presents Fruits and Nuts
Date: 01.15.08 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: Genworth: Corporate Term Carve-Out
Date: 01.16.08 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: John Hancock Presents Leading Edge
and CPI
Date: 01.23.08 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: Hanleigh Presents Executive DI Coverage
Date: 01.24.08 - 3:00 pm EST
Register Online Now or call 888.241.1254
 

 

Advanced markets

Case of the Week:
Spousal Access ILIT may be the best of both worlds – access to the policy’s values, yet outside the grantor’s gross estate!

Problem
To prevent a life insurance policy from being included in a grantor’s gross estate, the grantor must give up all incidents of ownership in that life insurance policy.  However, clients are often uncomfortable giving up such control.  This becomes even more difficult when a policy may accumulate significant cash values.  Further, the future of our current estate tax system is still in doubt.

So, what are the options to move a client to purchasing a policy today?

Simple Solution: Spousal Access Trust
A Spousal Access Trust is still an Irrevocable Life Insurance Trust (“ILIT”).  However, it names the grantor’s spouse (in addition to the children of the grantor) as one of the trust’s beneficiaries.  As a result, the trustee can make distributions during the lifetime of the grantor to the grantor’s spouse and children for their health, education, maintenance, and support. If needed, this gives the spouse and children, through a trustee, access to the cash value.  Even so, because this is a specially designed ILIT, the death proceed should remain outside the grantor’s or grantor’s spouse’s gross estate.

Benefits

• A Spousal Access Trust is still an Irrevocable Life Insurance Trust (“ILIT”).  However, it names the grantor’s spouse (in addition to the children of the grantor) as one of the trust’s beneficiaries.  As a result, the trustee can make distributions during the lifetime of the grantor to the grantor’s spouse and children for their health, education, maintenance, and support.   If needed, this gives the spouse and children, through a trustee, access to the cash value.  Even so, because this is a specially designed ILIT, the death proceed should remain outside the grantor’s or grantor’s spouse’s gross estate.

• With a single-life insurance policy in a Spousal Access Trust, either the spouse or adult children of the insured/grantor can be trustees of the ILIT.

• Provides asset management for trust beneficiaries.

• Remaining trust beneficiaries (usually the children) have the comfort of knowing that the trust assets are available (trust terms permitting).

• After the death of the Beneficiary/Spouse, the trust assets can be retained in trust and pass estate tax-free to the heirs.

Summary
A Spousal Access Trust can make an ILITs more flexible by providing access to the life insurance policy’s cash value for the family’s lifetime needs, while still keeping the death benefit outside of the taxable estate.

Call your Advanced Market’s Director or Brokerage Director today for more information!

 

questions?

Call The Potomac Group at
800.722.1600, ext. 6446 for more information.

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The Potomac Group, 6550 Rockspring Drive, Suite 320, Bethesda, MD 20817