The Motley Fool Discussion Boards

Previous Page

Financial Planning / Estate Planning and the Fool


Subject:  Re: College for grandchild Date:  9/15/2013  10:27 PM
Author:  Dwdonhoff Number:  4196 of 4734

Hi synchronicity,

Dave, I'm assuming you're discussing the possibility of rad personally owning an Indexed UL policy, preferably structured to maximize cash value, and at some point in the future taking out loans/surrenders to basis and using those withdrawn funds to pay for a grandchild's education. Is this correct?

Yes, with an asterisk. Whether she personally owned it, or controlled it in an ILIT, would be a matter of further detail. It used to be that holding such accounts in an ILIT killed the tax-advantaged liquidity features, but that is no longer the case, so in terms of asset protection you can now often eat your cake *and* have it too.

Dave Donhoff
Leverage Planner
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us