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Legacy Planning

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Legacy Planning

Our legacy planning solutions address three primary risks or exposures for investors: 1.) principal risk, 2.) taxes, and 3.) mismanagement by heirs.

Onboard features like the Restricted Stretch provision, and optional Return of Premium (ROP) rider available in our retirement investments give your clients the flexibility, transparency and control they need to plan for the transfer of their wealth, without the cost and complexity of traditional legacy planning instruments.

Variable annuities are long-term, tax-deferred investments investors buy from an insurance company to help them save for retirement. They are called “variable” because their value fluctuates based on the performance of the underlying investment options chosen. Some variable annuities offer optional living and death benefits for an additional fee. There are some limitations that may not be right for all investors, including that withdrawals are subject to income tax and those taken before age 59½ may be subject to a 10% early withdrawal federal tax penalty. Keep in mind that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company. We also need to add that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company.

For a client whose goals include providing a legacy for their children and grandchildren, protecting their hard-earned investment from loss of principal may be a top priority.

The optional Return of Premium feature available in our simplified, low-cost Investment Only Variable Annuity guarantees that your client will never lose their initial investment, no matter how the market behaves. It's like an insurance policy for their legacy–delivering peace of mind that their loved-ones are provided for financially.

When estates are settled, the heirs who inherit the wealth face tough decisions about how to transfer the assets.

Lump sum, 5-year payout, annuitization...Each of these payout options comes with its own set of problems, from tax exposure to mismanagement by heirs, and lack of control. The Restricted Stretch provision, available with our low-cost IOVA, allows owners to control distributions to heirs and minimize the tax burden of a large inheritance by spreading the tax burden out over their beneficiaries' lifetimes, without complex structures and expense. Owners have many options for controlling how the money is distributed, and to whom, which may help provide for heirs over very long investment horizons—when the compounding power of tax deferral becomes very valuable.

Distributions from trusts over $12,500 are taxed at the highest rate, which can negatively impact a trust investment.

This unnecessarily negative impact can be mitigated by locating that trust structure in a low-cost Investment Only Variable Annuity like Monument Advisor. A VA structure allows those distributions to be re-invested where they may compound and grow, without the tax-drag that may hinder NIMCRUTs, charitable remainder trusts, and other trust structures.

Ensuring the smooth transfer of wealth to charities of choice is an important legacy planning component.

Locating assets earmarked for charities in a low-cost Investment Only Variable Annuity may enable those assets to accumulate and grow tax-free, until distribution, so that your clients can maximize the impact of their charitable giving. And if tax-exempt charities are named as beneficiaries in the VA contract, those assets are transferred tax-free, as the owners wish, without the hassle of probate and legal processes.

Spouses shouldn’t let the market dictate the financial well-being of the other.

Included as part of the Return of Premium Death Benefit1 on Nationwide Advisory Retirement Income Annuity, the Spousal Protection Death Benefit feature helps spouses provide for each other regardless of who passes away first, even if only one spouse owns the annuity. In the event that the market is down when a spouse passes away, the surviving spouse has options to protect their financial well-being, providing them with income for when they need it most.

1Additional fees may apply, please see the prospectus for details. The Return of Premium Rider is not available in New York.

Meet Joan

Retired

Joan

Meet Tom

Commercial Real Estate Broker

Tom

Meet Don

Oil Executive

Jerry

Meet Patricia and Harry

Wealthy Benefactors

Tom
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For a client whose goals include providing a legacy for their children and grandchildren, protecting their hard-earned investment from loss of principal may be a top priority.

The optional Return of Premium feature available in our simplified, low-cost Investment Only Variable Annuity guarantees that your client will never lose their initial investment, no matter how the market behaves. It's like an insurance policy for their legacy–delivering peace of mind that their loved-ones are provided for financially.

Meet Joan

Retired

Joan

When estates are settled, the heirs who inherit the wealth face tough decisions about how to transfer the assets.

Lump sum, 5-year payout, annuitization...Each of these payout options comes with its own set of problems, from tax exposure to mismanagement by heirs, and lack of control. The Restricted Stretch provision, available with our low-cost IOVA, allows owners to control distributions to heirs and minimize the tax burden of a large inheritance by spreading the tax burden out over their beneficiaries' lifetimes, without complex structures and expense. Owners have many options for controlling how the money is distributed, and to whom, which may help provide for heirs over very long investment horizons—when the compounding power of tax deferral becomes very valuable.

Meet Tom

Commercial Real Estate Broker

Tom

Distributions from trusts over $12,500 are taxed at the highest rate, which can negatively impact a trust investment.

This unnecessarily negative impact can be mitigated by locating that trust structure in a low-cost Investment Only Variable Annuity like Monument Advisor. A VA structure allows those distributions to be re-invested where they may compound and grow, without the tax-drag that may hinder NIMCRUTs, charitable remainder trusts, and other trust structures.

Meet Don

Oil Executive

Jerry

Ensuring the smooth transfer of wealth to charities of choice is an important legacy planning component.

Locating assets earmarked for charities in a low-cost Investment Only Variable Annuity may enable those assets to accumulate and grow tax-free, until distribution, so that your clients can maximize the impact of their charitable giving. And if tax-exempt charities are named as beneficiaries in the VA contract, those assets are transferred tax-free, as the owners wish, without the hassle of probate and legal processes.

Meet Patricia and Harry

Wealthy Benefactors

Tom

Spouses shouldn’t let the market dictate the financial well-being of the other.

Included as part of the Return of Premium Death Benefit1 on Nationwide Advisory Retirement Income Annuity, the Spousal Protection Death Benefit feature helps spouses provide for each other regardless of who passes away first, even if only one spouse owns the annuity. In the event that the market is down when a spouse passes away, the surviving spouse has options to protect their financial well-being, providing them with income for when they need it most.

1Additional fees may apply, please see the prospectus for details. The Return of Premium Rider is not available in New York.

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