CMS – Capital Maximization Strategy is the signature strategy of Succession Capital Alliance. CMS is recognized by the insurance industry and leading law and accountancy firms as the “gold standard” in premium financing strategy. CMS uses an “intelligent leverage” process to purchase large permanent life insurance policies, which can reduce costs by up to 75%. We refer to this as Intelligent Leverage with Life Insurance. In short, it maximizes the performance of a life insurance policy, whether its purpose is estate, business or retirement planning. Here are some of our proprietary techniques:
CMS income maximizes the tax advantaged capital growth within a life insurance policy with the ultimate goal of providing a potential tax-free supplemental income. Not only does CMS income provide a significant income potential, it also provides a tax-free death benefit.
CMS estate is designed to provide an income and estate tax-free death benefit payable to an Irrevocable Trust while reducing or potentially eliminating annual gift tax exposure. In coordination with the client’s trusted advisors, CMS estate can be tailored to meet all estate planning objectives and is an excellent tool to transfer wealth to heirs and future generations.
CMS gift dramatically enhances the value of the Lifetime Exemption when gifted to an Irrevocable Trust. CMS gift can increase the future value of an exemption gift by over 200%, while providing potential asset protection and diversification.
CMS protection is designed to work in concert with asset protection techniques and strategies allowing the assets of the grantor, spouse and heirs to be protected against future lawsuits that may jeopardize the value of their assets.
CMS term shows clients how buying term insurance is economically inefficient, particularly for the high net worth clients that qualify for CMS. By showing the power of permanent life insurance, enhanced by the CMS strategy, the client will recognize the inefficiency of term life insurance and find tremendous economic value that they were not aware was possible.
CMS business represents a specific design that addresses the challenges a business is exposed to that may impede future profitability and growth in the event of the premature death of a key owner, or key person. CMS business minimizes the costs associated to insure a contingent liability and safeguard business growth and profitability.
CMS inforce addresses the ability to secure a line of credit using the cash value of an existing or new life insurance policy. This strategy is used to acquire additional life insurance without replacing existing coverage. It can also maintain the integrity of the original policy while creating opportunities to increase the overall life insurance portfolio value.
CMS FlexEstate Creates maximum flexibility in younger (under age 60) clients’ estate planning. At younger ages, estate plans must have ultimate flexibility and minimal estate plans must have ultimate flexibility, and minimal irrevocability. In addition, this customized strategy can allow for the future death benefits to be adjusted according to the growth of the estate over time.
CMS charitable can double or even triple deferred charitable pledges, increase current charitable gifts, maximize charitable deductions and increase net inheritance to heirs. It is synergistic with CMS estate and CMS inforce. Working in concert with the client’s trusted advisors, fiduciaries and fundraising professionals, this strategy represents a medley of customized flexible proprietary designs that can be used by philanthropists who qualify with a minimum net worth of $25 million.