I have just three things to add here.
First: What type of trust?
There’s a revocable trust.
And there’s an irrevocable trust.
The Rockefellers used irrevocable trusts to keep life insurance proceeds outside of the taxable estate.
Second: Who owns the life insurance?
That part wasn’t really addressed.
Saying the trust is the beneficiary is not the same thing as ownership.
If you follow the Rockefeller model, the trust is both the owner and the beneficiary of the policy.
Third: What happens generation after generation?
This is where it gets really powerful.
You can task the trustee to use life insurance proceeds to purchase new policies for each member of future generations.
That’s how the system replenishes itself.
That’s how the vault stays full.
And that’s how you create true generational wealth.
Credit (IG):
@illuminate.your.wealth
SF0076_RE2
