Jon Blattmachr

One unfortunately common and major mistake made in estate planning is the failure to use trusts to the maximum extent the law permits. Trusts may be the most important development under English common law, which pervades the United States, with the exception of Louisiana. That state and many countries through the world that do not use English common law as its fundamental legal system have adopted trusts by a variety of means including legislation. That is because trusts are, in many ways, the most powerful and important tool in estate and financial planning.

Life insurance is one of the least understood financial products in the world. In just a few minutes of study, one can reasonably grasp the concept of equity interests in a business (e.g., common stock, preferred stock), bonds and other forms of debt. Even more complicated financial products, such as derivatives and options can be readily understood. However, even some people who have spent a career in the life insurance industry do not really understand the financial aspects of this product.

It has been estimated that there is over $28 billion in qualified retirement plans (QRPs) and Individual Retirement Accounts (IRAs) for Americans.  These arrangements offer tremendous financial benefits for the QRP  participants and IRA owners.  These benefits may include avoiding income tax on otherwise taxable income contributed to the arrangement, the income tax free growth on earnings inside of the arrangement and protection from claims of creditors of the participant or owner.