Survivorship Life Insurance
The best permanent life insurance to fund a special needs trust or estate tax liability
Learn MoreTax Saving Strategies
Tax strategies designed around your whole plan.
Triathlon Partners works with business owners, executives, and high-net-worth individuals on advanced tax planning intended to defer or reduce tax liability, so you can preserve and grow more of your wealth.
Beyond the Basics
More than tax-deferred accounts and Roth IRAs.
Many advisors rely solely on tax-deferred accounts and Roth IRAs. We take a more strategic and personalized approach, drawing on a wider set of tools, such as the Deferred Sales Trust, profit sharing plans, and survivorship life insurance, to use more of what the tax code allows.
Our team works closely with business owners, executives, and high-net-worth individuals to build customized, forward-looking plans. Every strategy is evaluated for whether it fits your situation, alongside your CPA and attorney.
Keep more. Build more. Plan for less tax over time.
The Tools
Strategies we evaluate.
Deferred Sales Trust
If you are a business owner or hold a highly appreciated asset, selling it can trigger a significant capital gains tax bill. A Deferred Sales Trust is an alternative to a 1031 exchange that can allow you to defer that tax. Rather than paying tax upfront, the proceeds are invested through the trust and paid to you over time, with tax generally due as income is received, similar in concept to how retirement account distributions are taxed.
- Defer capital gains tax on the sale of a business or appreciated asset
- Create an income stream intended to replace the asset's cash flow
- Pay tax as income is distributed, rather than all at once
- Gain more control over the timing of taxable income
Profit Sharing Plans
As a business owner, you have flexibility in choosing your retirement benefit plans. A profit sharing plan can offer more flexibility than a standard 401(k), and in some designs can hold life insurance. Because the tax treatment of a 401(k) withdrawal differs from that of a properly structured life insurance policy, coordinating the two can, in the right circumstances, improve after-tax outcomes and legacy planning. The specifics depend entirely on plan design and your situation.
- More flexibility than a standard 401(k), including insurance in some designs
- Potential to coordinate retirement and legacy planning
- Greater control over taxable income and plan structure
CHEIFS: Access Home Equity Without a Loan
CHEIFS (Cornerstone Home Equity Insurance/Investment Funding Solutions) is a way for homeowners who are house-rich but cash-poor to access home equity without a loan or reverse mortgage. You sell a portion of your home's future equity in exchange for cash now, with no loan payments and no interest. You remain the majority owner with full residency rights, and when the home is eventually sold, each equity holder receives their share. Terms, caps, and eligibility vary by the specific offering.
- Access cash by selling a share of equity, not by borrowing
- Remain the majority owner of your home
- Stay in your home with full residency rights
Estate Planning with Survivorship Life Insurance
Survivorship life insurance, also called second-to-die insurance, can be a cost-effective estate planning tool, particularly for families with estate tax exposure, special needs planning, or legacy goals. It insures two people, typically spouses, and pays the benefit after the second death. Because it covers two lives, premiums can be lower than two individual policies. Whether it fits depends on your estate and tax situation.
- Provide liquidity to help pay estate taxes
- Fund a special needs trust
- Support a legacy for heirs or charitable goals
- Often a cost-effective permanent life insurance option for two lives
Watch & Read
Go deeper on tax planning.
Article
Survivorship Life Insurance
A permanent life insurance approach often used to fund a special needs trust or estate tax liability.
Article
Deferred Sales Trust
How a DST can defer tax on the sale of highly appreciated assets and reinvest the proceeds for income.
Video
Planning for Higher Taxes
Why coordinated planning matters when income, estate, and capital gains taxes stack up on a legacy.
Common Questions
About these strategies.
A Deferred Sales Trust can allow the seller of a highly appreciated asset, such as a business or real estate, to defer capital gains tax. Rather than paying tax at the time of sale, the proceeds are placed in a trust and paid out over time, with tax generally paid as income is received.
It is sometimes considered as an alternative to a 1031 exchange. Whether it fits depends on your situation, and it involves costs and specific legal requirements.
A profit sharing plan is a type of employer retirement plan that can offer more flexibility than a standard 401(k), including, in some designs, the ability to hold life insurance.
The tax treatment of contributions, withdrawals, and any insurance component depends on how the plan is structured and on individual circumstances. Plan design should be done with qualified tax and legal advisors.
Survivorship life insurance covers two people and pays the death benefit after the second death. Because it insures two lives, premiums can be lower than two individual policies.
It is often used in estate planning to provide liquidity for estate taxes, to fund special needs trusts, or to support legacy and charitable goals. Suitability depends on your estate and tax situation.
These strategies are generally most relevant to business owners, executives, and high-net-worth individuals with significant appreciated assets, estate tax exposure, or complex income situations.
None of them suits everyone. Each involves costs, rules, and tradeoffs, and should be evaluated within a coordinated plan alongside qualified tax and legal advisors.
Are your tax decisions being made one at a time, or as part of one plan?
Schedule a ConversationThis page is general educational information and is not tax, legal, or investment advice. Triathlon Partners LLC does not provide tax or legal advice; consult a qualified tax advisor and attorney before implementing any strategy. The strategies described involve costs, fees, and specific eligibility and legal requirements, are not suitable for everyone, and outcomes depend on individual circumstances and current tax law, which is subject to change. Insurance products are offered through Triathlon Partners LLC and individually licensed and appointed insurance agents. Guarantees are based on the claims-paying ability of the issuing insurer.
More information on Tax Saving Strategies
Deferred Sales Trust
The Deferred Sales Trust allows you to defer taxes on the sale of highly appreciated assets. This strategy enables you to invest the proceeds from a sale, generate more income, and pay taxes later, helping you retain more of your wealth while utilizing advanced tax savings techniques.
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