paid for them by an outsider. What clarify of outsider will step up and pay the obligations, mortgages, and taxes other than a life insurance enterprise?
Other than life insurance proceeds what the other feasible sources for hard cash at death are there?
Your widow might have the money in her assets and investments. She could take that reserves, balance you worked hard to set aside after income taxes and pay off the mortgages, bank loans, and other obligations. Then what would she do for her security?
Do you really want her to have to use that bank account, life savings that cost so much to create? Is this how you want her to remember your venture aptitude? Especially when you could have bought the dough she'll necessity for pennies a piece with life insurance? What will she and your mother in law and your kids intellectualize of you if you leave them like this?
In addition there is a huge cost for using your reserve fund and investments for paying your eventual expenses. First you had to earn the bundle and pay income taxes on it. Then you had to set enough of it aside regularly and long enough for the compound growth of interest or stock appreciation again probably paying income taxes on the earnings.
The super farm you do as a saver and investor, the more and more resources your widow will lose when she has to cash in your hard earned life savings and investments to pay your debts and leaving expenses.
I am not going to go waste any more time talking to those of you who were successful enough to sock enough liquid assets away that your widow could pay your terminal expenses from the investments you have created. You are much too smart to eliminatethese hard earned dollars on your eventual expenses.
Or your widow can sell some of your assets to raise the hard currency she'll need for to pay creditors, taxes, and concern warrantments.
If you are like most small business owners, 75-90% of your personal assets are tied up directly or indirectly in your industrial. Selling assets to pay taxes and debts means selling venture assets. Selling operating company assets means that they are not really longer available as part of the income generating machine.
Selling income producing assets and losing their corresponding ability to prepare the way the diversified corporation grow in order to accommodate your family's continuing security seems stupid to me. If you are a successful copartnership owner you did not produce that procedure by making stupid decisions.
Making your widow sell joint-stock company assets, close out her cash reserves, or sell off the investment portfolio to pay debts, taxes, and other known and unknown leaving expenses just is not the answer. Not if you want you widow and orphans to remember you as a successful caring father and husband. If you do not care how they remember you let them sell out these holdings to keep your recommitments and pay off your debts.
There is one other option that is potentially available. Maybe your widow could borrow the fund. Take your wife with you to the bank tomorrow and talk to your banker. Come out with him your plan. Instead of buying life insurance to pay your loans and mortgages you are going to instruct your widow to come to the bank after your funeral, whether it's subsequent week or decades in the future.
She will want to extend the current line of credit, continue to pay on the current loans, and borrow move currency in order to pay the rest of the debts you will be leaving behind.
Then sit back and see what the banker has to say. Will they commit to your proposition, will they sign a be brought down to guarantee it? And what is the rate of interest that they will charge her?
Will she be able to make this work? Is this the affirmation you want to put her in?
Or why don't you call your life insurance agency and instruct him or her that you decipher an second draft that made it clear to you that if you want your mother to be proudful of you, your widow not have to look for a new husband, and your kids to remember you fondly, it is time you increased your life insurance to address the factuality to that you have created.
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