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Manulife Kit Explains Private Estate Financing Strategy

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NU Online News Service, June 28, 2004, 6:16 p.m. EDT

Manulife USA, Boston, is introducing a sales tool kit that describes strategies for using “self-financing” or “private financing” in estate planning.[@@]

The kit shows how wealthy clients can use loans from their own trusts or partnerships to fund irrevocable life insurance trusts with large life insurance policies. The trusts protect the life insurance death benefits from estate taxes, and using loans to pay for the life insurance can keep the payments for the life insurance from using up a client’s gift tax exemption, Manulife says.

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Manulife also is rolling out a software module that can help advisors draw up private financing proposals for clients.

Manulife USA is a unit of Manulife Financial Corp., Toronto.