To view this email as a web page, click here.                                                                                                    January 23, 2008

We will feature our first ever Premium Finance Town Hall at our 2008 Spring Meeting on March 10-11!  The Town Hall panel will bring together funders, carrier representatives, underwriters, advanced markets representatives from The Potomac Group and your agent peers to address your questions regarding the ins and outs of the premium financing (or finance?) market. It is our goal to bring you the latest information available so you can better serve your clients. This year's meeting will be held at the fabulous Ritz Carlton in New Orleans. This is a meeting you will not want to miss!

I encourage you to save these dates -- March 10-11th -- for the 2008 Spring Meeting at the Ritz Carlton in New Orleans.  Stayed tuned – more details to come soon!

Teague Wright, EVP, The Potomac Group
 

AIG American General
- Select-A-Term: Life on YOUR Terms
- Life Interest Rate Change
- CyberSeminars 2008

AXA
- Key Person Planning
- NEW Cash Value Plus (CVPlus) Rider

ING
- Tips for Creating Suitable VUL Illustrations
- Upcoming Changes for ING LifeDesign Guarantee Universal Life (GUL)
- ING Life Companies Exiting PPVUL Market
- ING Protector UL: Now with Enhanced Features

Prudential
- Looking for a Competitive UL Product for a Preferred Best Male Client?
- Top Ten Reasons to Think Prudential

West Coast Life
- Introducing New Rates and Underwriting Enhancements on West Coast Life’s Focus Term Series!

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 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:
Business Succession & Estate Equalization for the Small Business Owner

Challenge
Peter Thompson, age 64, is sole owner of an S-Corporation.  Peter and his wife Lois, age 59, have three children – Meg (age 36), Chris (age 34), and Stewart (age 25).  Peter would like to retire in the next 10 years and transfer control of his business to Chris, who is the only child active in the company.  However, Peter and Lois do not want to be unfair to Meg and Stewart. How will the Thompsons make the transfer to Chris, leave a proper legacy for Meg and Stewart, and avoid gift taxes on the entire plan?

Solution

• Transfer the business to zeroed-out, 10-year Grantor Retained Annuity Trust (“GRAT”). Chris is the beneficiary of the GRAT.

• Use GRAT income payments to fund an ILIT holding a SUL policy on Peter and Lois. Meg and Stewart are beneficiaries of the ILIT. Use annual exclusions and lifetime exemptions to avoid paying gift taxes on premiums gifted to ILIT.

• Use leftovers from GRAT payments to maintain current income level for Peter and Lois.

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