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Gradual Inheritance Strategy

Gradually transfer an inheritance to your beneficiaries.

"When you pass away, the proceeds of your life insurance and/or savings accounts are traditionally paid to your beneficiary(ies) as a lump sum. ... Depending on your circumstances, you may prefer your beneficiary(ies) to receive their inheritance more gradually."

This strategy may benefit you if:

  • You are worried about how your spouse or children will manage the finances once you have passed away

  • You are concerned about passing on a large lump sum death benefit to a beneficiary who is young or inexperienced at managing money

  • You would prefer to have your beneficiary(ies) receive a controlled income stream, rather than a lump sum, to ensure that the money is not all spent at once.

  • You want to provide lifetime support for a financially dependent beneficiary.

This strategy utilizes an "Annuity Settlement Option" to control the estate after death, and has several benefits over a formal trust

  • No cost to set up

  • Simple to establish and with no ongoing management fees

  • You can amend the amounts or beneficiary(ies) at any time without having to pay a lawyer to amend or redraft a trust agreement

Also, all distributions can be i) private - outside of your will; ii) multiple instructions for multiple beneficiaries; predictable and guaranteed income payments for the period of time specified by you.


Talk to us about your specific preferences. These are more common than you think.


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