Multigenerational Legacy Planning

Clients and friends,

This week, we’d like to highlight an interesting approach to legacy planning: the “Cascading Life Insurance Concept”. Also known as “The Waterfall Concept” or “Intergenerational Wealth Transfer”, it’s a strategy that is ideal for families that anticipate their money outliving them. It begins with the purchase of a whole life insurance policy by a grandparent on their adult child and the grandchild is named as the beneficiary. The adult child is the contingent owner of the policy, and, once the grandparent passes, the adult child then becomes the outright owner. Eventually, the ownership of that policy will be transferred to that child.

Here are just a few key benefits to this strategy:

  1. Assets Can Grow Tax-Free Inside the Policy.
  2.  It Provides a Layer of Financial Security for Multiple Generations.
  3. It Can Preserve Insurability.
  4. It Can Extend Beyond Legacy Giving.

This is also an interesting strategy to consider when dealing with the rollover of corporate shares to the next generation. Wealth transfer planning is a specialized process and it’s one of the things we do best. We’d love to chat with you today about extending your legacy for generations to come.

Ready when you are.

Scroll to top