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Life insurance has tax advantages. Private family foundations (PFFs) have tax advantages. As an old television commercial used to say, “Peanut butter and chocolate taste great on their own … but when combined … these two great tastes, taste great together!” That formula, I’d venture to say, worked great for the H.B. Reese Candy Company. So, I now ask all those Reese’s Peanut Butter Cup lovers out there: Can life insurance and PFFs work together to share a similar outcome?
Understandably, having a sweet tooth alone doesn’t qualify you to answer the question posed. Some advisors may view the use of life insurance, in terms of PFFs, as creating redundancy, given that a PFF’s assets grow, by and large, tax-deferred. But, there are a number ...
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