76•


TAX SOLUTIONS How to increase your income legally (Continued from page 72.)


miracles for your specific goals. The numbers for the likes of Joe usually look even better when Joe is married and the insurance involved is second- to-die.


Conservative investors life insurance (CILI) Want to increase your income,


legally avoid the income tax on that income and have your capital (plus all earnings) go to your family tax- free? No, it’s not a fantasy. It’s CILI. It’s perfect for a guy like Joe, who is married to Mary (also age 70). Joe and Mary buy a $3-million sec-


ond-to-die CILI policy (it could be any amount) with an annual premium


of $70,548. The policy currently earns 3%. The payoff on their investment


comes after the second death and is determined as follows. (This example assumes that after 10 years — age 80 — both Joe and Mary get hit by the same bus.) Their heirs (kids and grandkids) would receive:


•THE WHOLESALER® — MARCH 2011


• Death benefit of $3,000,000 • Premiums paid ($70,548 times 10 years) of 705,480 • Interest earned on premiums paid


(at 3%, but would be higher, if inter- est rates rise, or lower, if interest rates fall) of 111,999 • Total amount (tax-free) to heirs of $3,817,479 Of course, the longer that either Joe


or Mary lives, the larger the amount to their heirs. The easy way to summarize a CILI investment is as follows: You get: • Your investment (premiums paid) back, dollar-for-dollar • Plus earnings (3% here) on pre- miums paid • Plus a guaranteed bonus, the death benefit (here $3 million) • It’s all tax free (no income tax, no estate tax). Neat! The Internal Revenue Code


The exact numbers for any specific person in each of the above examples are influenced primarily by your age, your health and interest rates.


Also, the skill of your advisor impacts the final results. So, don’t mess with an amateur.


comes through again. Important note: The exact num-


bers for any specific person in each of the above examples are influenced primarily by your age, your health and interest rates. Also, the skill of your advisor impacts the final results. So, don’t mess with an amateur. Sure, sure, you want to know how


an HES, QPR or CILI might work for you, your Mom or Dad or your grandparents. So, I have made arrangements for readers of this col- umn to get (from an experienced pro- fessional) all the information you need. Just fax your name and birth- day (same for your spouse if you’re married), address and phone numbers (work, home and cell) to Irv Black- man at 847/674-5299. Mark “CODE article” at the top of the page. Have a question and can’t wait? Call Irv at 847/674-5295.


n Irv Blackman, CPA and lawyer, is See contact information on page 194 • Be sure to visit www.thewholesaler.com for web exclusive articles and videos! •


a retired founding partner of Black- man Kallick Bartelstein, LLP (CPAs) and Chairman Emeritus of the New Century Bank (both in Chicago). Want to consult? Need a second opin- ion? Contact Irv by phone at 847/674-5295, e-mail blackman@es- tatetaxsecrets.com or visit his website at www.taxsecretsofthewealthy.com.


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