The Irrevocable Trust Cash Release Program - HG.org

The Irrevocable Trust Cash Release Program


     By Lance Wallach, CLU, CHFC 


Through a special program, created by Money Watch Consultants Inc., called The Irrevocable Trust Cash Release Program, funds from the insured’s irrevocable trust can be released and made available to pay for long term care, in a facility or at home. And this care can even be provided by a family member.

The amounts of funds that can be made available are typically a vast multiple of the funds currently in the trust. Despite the leveraging, due to the unique structuring of the program, the funds in excess of the initial deposits, and prior to the death of the insured, are received by the trust, and paid out of the trust, on a tax free basis.



This program has recently attracted much attention because Congress has just extended estate tax exemptions to 5 million dollars for individuals and 10 million dollars for married couples. Thus many people who have set up and funded various irrevocable trusts in order to pay their estate taxes, feel that they are no longer needed.



This program gives them the ability to dramatically leverage these funds to pay for health care that they anticipate may eventually be required, without worrying about liquidating assets or making withdrawals on retirement accounts.



The latest development in irrevocable trust management can solve the insured’s desire to get, tax free cash out of the underused insurance policy when most needed, and prior to dying.



Through a special legal loophole, needed funds from the insured’s irrevocable trust can be released and made available to whoever you want, including yourself. Lance Wallach, who wrote the CPA's guide to trusts and estates, and other continuing education books read by CPA's attorneys and financial planners and associate William Kaufman have spent years studying the problem... Most life insurance trusts are underperforming, often requiring [Bill Kaufman] much greater premiums than anticipated. If they were properly designed, no more premiums would be due. Many policies in trusts are rapidly using up their insurance cash values, dramatically underperforming, and are at risk of failing altogether. There are many other problems with almost all of the trusts examined. If you advised your client on these matters, or serve as trustee for him/her, you may have a contingent liability suit on these matters, should the life insurance fail.



Now cash can be released to be used when really needed. Most attorneys, CPA’S, planners etc. that have heard me speak at thousands of national conventions don’t have a clue about the problems. Most of them even created some of these problems for their clients, who are also not aware. As an expert witness Lance Wallach has never lost a case. This does not necessate a lawsuit, just a simple fix. Make sure if you advisor tries it, he has successfully helped others with the program. If done wrong the IRS will come calling, Google Lance Wallach for articles on point. Despite the leveraging, due to the unique structuring of the program, the funds in excess of the initial deposits, and prior to the death of the insured, are received by the trust, and paid out of the trust, on a tax free basis.



If you have an insurance or similar trust you probably have lots of money in it. You may also have lots of problems that will not be discovered until you die. We have been consulted by many beneficiaries with these problems, usually after being charged thousands of dollars by their law firms to tell them about the problems, but not fix them. The way most of the trusts that we have studied, usually set up by law firms, are structured; the big beneficiaries at death will be the law firms. Worse, insurance in the trusts easily falls apart before death, unless you die young. Get an experienced person to review your trust, either to free up lots of money, or to review for problems before it is too late. [Bill Kaufman] If you don‘t [Bill Kaufman] believe me, than Google Lance Wallach and then Google your advisor and see who is more credible. You have worked hard for your money. Don‘t let poor planning, lawyers greed, insurance agents with big commissions disrupt what you thought was sound planning.



ABOUT THE AUTHOR: Lance Wallach, Bill Kaufman

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press. He does expert witness testimony and has never lost a case.



Copyright Lance Wallach, CLU, CHFC

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