The MPI Legacy Trust that started it all. Designed specifically for MPI® Strategies enabling you to name:
(1) who will manage the MPI® Strategies upon your incapacity or death;
(2) who will inherit your MPI® Strategies; and
(3) how much and when your loved ones will receive funds from the MPI Legacy Trust.
It is designed to protect the MPI® Strategy from your loved one’s creditors, lawsuits, bankruptcy, divorce, government aid programs and their federal taxable estate. With their cooperation, the Basic MPI Legacy Trust enables you to invest in MPI® Strategy on the lives of descendants while you retain the income and control of the MPI® Strategy. The Basic MPI Legacy Trust can invest its funds into additional MPITM Plans for your loved ones too. If you are uninsurable or the cost of insuring your life is high, a MPI Basic Legacy Trust solves this dilemma by enabling you to obtain MPI® Strategies on your loved ones while you enjoy the income.
The Basic MPI Legacy Trust is revocable, meaning you can amend the trust until your death or mental incapacity; whichever occurs first. This feature offers you the flexibility to make changes as your family’s needs and goals change too.
You are investing your hard earned assets into your MPI® Strategies. One of the primary concerns parents have is that what they have saved and scrimped for during their lifetime could be wasted by frivolous spending after their death. A beneficiary of a MPITM Plan is entitled to spend the MPI® Strategy’s death benefit and proceeds however they wish. A Basic MPI Legacy Trust solves this problem as it can prevent your loved ones from wasteful spending; such as the Ferrari or the yacht.
A MPI Legacy Trust solves five common problems that exist if you own an MPI® Strategy without a MPI Legacy Trust. The five potential problems of inheriting an MPI® Strategy without a MPI Legacy Trust are:
- Creditors: If your loved one is ever sued, their inheritance from your MPI® Strategy is subject to seizure. If your loved one is a doctor, lawyer or in another high-risk occupation, he or she is especially exposed to the potential of losing their inheritance from a lawsuit. A MPI Legacy Trust holds your loved one’s inheritance within the MPI Legacy Trust. The loved one is a beneficiary of the MPI Legacy Trust and not the owner of MPITM Plan’s proceeds. This means the inheritance from the MPI® Strategy is shielded from your beneficiary’s creditors.
- Bankruptcy: If your beneficiary has filed for bankruptcy, voluntarily or involuntarily, his or her inheritance from your MPITM Plan is subject to seizure from the bankruptcy trustee. Similar to the shielding power of the MPI Legacy Trust against creditors, the MPI Legacy Trust also shields the beneficiary’s inheritance from a bankruptcy trustee.
- Divorce: If the inheritance from your MPI® Strategy is deposited into a joint account with a beneficiary’s spouse, it becomes subject to a divorce settlement. If the beneficiary is then involved in a divorce, the MPI® Strategy’s proceeds could be subject to the divorce court. A MPI Legacy Trust prevents this problem because it maintains the MPI® Strategy and your loved one is only a beneficiary. Because he or she isn’t the owner, the divorce court cannot reach into the MPI Legacy Trust in the event of divorce.
- Government Aid Programs: If your loved one is disabled and receiving government aid that is subject to income and asset qualifications, he or she will be disqualified from such aid upon receiving his or her share of your MPI® Strategy benefit. The MPI Legacy Trust is designed to automatically become a special needs trust for every beneficiary who is eligible to receive government aid. A special needs trust enables the beneficiary to receive benefits in a unique way while also receiving government aid. Further, if a beneficiary inherits the MPI® Strategy directly, rather than the MPI® Strategy being owned by a MPI Legacy Trust, such funds could disqualify the beneficiary and the beneficiary’s children from college financial aid benefits.
- Federal Estate Taxes: The MPI® Strategy will be subject to your federal taxable estate upon your death. If a loved one inherits the MPI® Strategy’s proceeds, such money then becomes part of your loved one’s taxable estate. By keeping the MPI® Strategy in the MPI Legacy Trust, it reduces the amount subject to your beneficiary’s federal taxable estate. This means that more of your hard earned money will go to your loved ones and not to federal estate taxes.
Mr. Skabelund normally charges $290 for his initial consultation and approximately $5,000 for a living trust with similar features. However, MPI® Strategy owners receive a free consultation and pay only $1,500 for the Basic MPI Legacy Trust.