As you develop your estate plan, it will be essential to take into account the tax consequences of your investment and savings vehicles. Investment grade insurance contracts, indexed universal life insurance, and infinite banking all offer a way for you to invest your money where it will grow tax free, provide a death benefit, and be available when you need it.

Tax upstreaming is a strategy that will allow the elimination or reduction of corporate state income taxes by shifting the profits to states with lower or no income taxes.

Self-directed retirement accounts offer the same advantages of a traditional IRA, but give you the flexibility to invest your money where you want it, rather than being limited to stocks, bonds, and mutual funds.

To maximize your tax savings, you need to consult with someone familiar with the latest tax law, including the recently enacted Trump Tax Plan.


Investment Grade Insurance Contracts

An investment-grade insurance contract is an insurance contract that allows you to not only invest your money without having to pay taxes on its growth, but can withdraw it when you need it, also without having to pay taxes on the withdrawal. That means you can put your money away, make interest, earn interest on your interest, and not share any of it with the government as it grows.



Tax upstreaming is a money-saving strategy whereby a C-corporation domiciled in one state "upstreams" its income to another company in another state. If done right, the company can avoid paying state income tax in its home state. The strategy is most effective when upstreaming to a company in a state with no income tax, like Nevada.


Indexed Universal Life Insurance

IULs are a specific type of whole life insurance policy where the cash value of the policy is and grows based upon index performance. Between you and your financial advisor, each year, the money in your policy is put in an index for growth—typically ones that reflect market indexes like the S&P 500, Dow Jones Industrial Average, Nasdaq 100, etc. (though the policy money is not invested directly into the stock market).


Infinite Banking

If you set up your estate plan right, you can be your own bank, which means you can take that portion of the bank's profits they would have earned from lending you money and keep it for yourself.

Infinite banking, also referred to as "being your own bank," is not a product, but rather a method through which you can use your whole-life insurance account to turn yourself into your own banker.


Self-Directed Retirement Accounts

The money you contribute to a traditional IRA is typically invested in stocks, bonds, or mutual funds. The difference between a traditional IRA and a self-directed IRA is that you have more investment options with a self-directed IRA: there are a number of alternative investments you could choose to store your money, like real estate, private mortgages, precious metals, intellectual property, private company stock, private market securities, and others.


Trump Tax Plan

The House of Representatives passed the "Tax Cuts and Jobs Act of 2017," (Trump Tax Plan) on December 20, 2017. It's the biggest piece of tax legislation since Ronald Reagan's Tax Reform Act of 1986.

The new tax bill makes small decreases in tax rates for most brackets for individuals, but creates much bigger savings for corporations, including the elimination of the corporate alternative minimum tax. Small businesses implementing a pass-through tax strategy will also find significant savings. So will businesses with significant income generated outside the United States.