This will guide you through the process of setting up and presenting an estate transfer strategy using Life Design Analysis
Creating a New Case
To initiate a corporate or personal estate transfer case, follow these steps:
- Click on "Add New Case."
- Create a new client or select an existing client from your LDA account.
Adding a Plan
- Add the plan you want to use for presenting the estate transfer concept. Generally, options include overfunding a universal life plan or utilizing a par whole life plan.
- Choose the plan from the dropdown menu, and the system will prompt you to retrieve data from your illustration software.
- Prepare your plan details in the illustration software and export it to Microsoft Excel. You can import the file or copy and paste the data into the LDA case.
Setting Up Assumptions
- Access the "Corporate and Personal Estate Transfer Assumptions" section.
- Indicate whether it's a personal or corporate case. Tax rates will adjust accordingly based on your selection.
- Customize assumptions, such as investment mix, growth rate, tax rates, and RDTOH (Refundable Dividend Tax on Hand) rates.
Generating the Report
- After configuring assumptions, choose the "Report Concept" that corresponds to either corporate or personal estate transfer.
- Select the plans and products you want to include in the case.
- Click "Generate Report" at the top of the screen to compile all the data and assumptions into a report.
Report Content
The generated report includes the following sections:
- Brand Settings: Customized branding based on your company and client information.
- Report Notes: A write-up specific to the chosen estate transfer concept.
- Insurance Product: Details of the insurance product being used, including premium payments and coverage.
- Assumptions: Assumptions such as tax rates, RDTOH rates, and investment details.
Interactive Features
- All legends and options within the report are interactive, allowing you to customize scenarios.
- Visual representations emphasize the difference between taxable investments and life insurance benefits.
- Tables are available for clients who prefer numerical data.
Summary Graphics
- The report includes graphics illustrating the advantages of using a life insurance policy for estate transfer, showing the difference between taxable investments and life insurance benefits.
- You can compare different investment scenarios and display potential capital required or required rates of return.
Detailed Table Breakdown
- A table breaks down all calculations for net estate benefits, insurance benefits, and advantages in dollar and percentage terms.
- Information is presented in increments, typically every five years, and can be expanded for more detail.
- Internal rate of return at death is factored in, comparing investment and insurance options.