Legacy Planning

Real Case 1
Real Case 2

Legacy Planning – Real Case 1

Policyowner/Insured : Mr. X
Age : Age 80
Nationality : Japanese
Background : 1. Wealth transfer (USD4M) to his son (Age 50) and grandson (Age 18)
after death.
2. Mr. X was worry about his son and grandson:
(a) are not good at managing finances
(b) spend recklessly after receiving his inheritance.
Background :
 3. Worry his grandson is not mature enough to manage the huge death benefit
4. Avoid extremely high inheritance tax.
Paid as a national tax (between 10% and 55% after an exemption of 30
million JPY + 6 million JPY per heir is deducted from the estate).

Japanese inheritance tax rate:

Solution : Suggest to arrange a single pay life insurance.
Challenge : High premium due to his old age and health status.
Consequence : The death benefit is paid by regularly scheduled instalments.
Prevent reckless spending by the beneficiaries while ensuring long-term protection.
Paid by monthly instalments before the designated age of grandson and the remaining
balance to be paid in a lump sum at designated age of grandson.
Allow the beneficiary to receive the payout by stages to encourage child’s financial
Target : Wealth Transfer to next generation by instalments
Flexible Settlement Option for Death Benefit Tax Exemptions

Legacy Planning – Real Case 2

Background : Plan to return the money to her two nieces in US.

Challenge : High Inheritance Tax and Source of Fund issue in US.

Consequences : Ms. Y got a Single premium of USD2 million saving policy and passed
away 11 months after the policy was issued.
Death proceed paid to the named beneficiaries
who are her two nieces by wired smoothly.

Target : Wealth Transfer and Tax exemptions.

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