Yours, Mine & Ours Have You Adjusted the Planning Picture for the New Normal? Fine-tune Your...

Yours, Mine & Ours

Have You Adjusted thePlanning Picture for the

New Normal?Fine-tune Your Clients’ Plans

with Life Insurance

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Blended Families

For Life Insurance Producer Use Only. Not for Use with the Public.

What Do These Families Have In Common?

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What is a BLENDED FAMILY?

PATTY

This PHRASE is an umbrella term that covers a variety of family units blended together from other family units. The common denominator is children, whether biological, adopted, or with legal caretakers.


HIS, HERS, AND OURSCouple, both with children from prior relationships and have child(ren) together

HIS AND HERSCouple, both with children from prior relationships but no children together

HIS OR HERSCouple, only one with child(ren) from prior relationship (may have children together)

SAME SEX COUPLE WITH CHILDRENMarried, unmarried, civil union

OLDER COUPLE WITH ADULT CHILDREN

The Many Faces of Blended Families


*"Spotlight Statistics," Smart Stepfamilies, Updated February, 2011.

The New Family Norm

1 out of 3 of all weddings today form stepfamilies*

6 out of 10 remarriages involve children from prior marriages*

4 out of 10 adults have at least one step relationship*

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Not for Use with the Public.

When Blends Go Sour

Who owns the … Family business? Beachfront home? Estate? Assets?

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Does “Traditional” Estate Planning Work in the Blended Family?

How are you identifying the CONNECTION between

family and financial?

Family Dynamics

Financial Dynamics

Loyalty conflicts among children

Stepchild/stepparent rejections

Custody/visitation resolutions

Distributing wealth fairly

Unintentional disinheritance

Favoritism when passing assets


Unique Planning Opportunitieswith Blended Families

How are these unique in the blended family context?

PersonalRetirementBusiness Estate


Simon has always dreamed of working with his father in the family golf business

Simon became an integral part of the business and holds a minority interest

Simon’s father died unexpectedly and his stepmom inherited all the sharesin the business– Simon’s stepmom is not active in

the business

“My Stepmom IsMy New Boss?”

Golf SupplyBusiness

Meet Simon


Business Planning

Concern:

Opportunity:

Your client wants to sell the family business to a child from a prior marriage, while still providing for the current spouse

Ensure business passes to child and spouse is financially taken care of


Family buy-sell, one-way buy-sell, or executive bonus plan– Provides funds to equalize for

non-business heirs

Life Insurance RoleBusiness Continuation Strategies

Are You Getting the Most Out of Your

Business?#15-31264


Business Planning: Examples of Probing Questions

How would your children feel if your spouse/partner was the “boss” following your death?

If you’re not transferring the business to your spouse/partner, how do you plan on providing for him or her?

If you intend to transfer your business to only certain children, how do you propose treating the others?

Who do you want to end up with your business?


Both have grown childrenfrom prior marriages

Candace is 19 years younger than Ron (she’s closer in age to his children than to him)

When Ron died, all of his assets passed to Candace

Who Ownsthe Assets?

Meet Ron & Candace

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Not for Use with the Public.

Estate Planning

Concern:

Opportunity:

Your client wants to provide equitably for his or her children and stepchildren

Ensure the interests of children and stepchildren are balanced to avoid family conflicts


Irrevocable Life Insurance Trust with flexible trust provisions– Helps ensure assets are distributed

equally to all named heirs

Life Insurance RoleEstate Equalization Planning Strategy

What the Wealthiest Families Know

#15-28574


Do you want your children to inherit your assets at your death (if you die first) or at the subsequent death of your spouse/partner?

How will your spouse/partner/children react to your plans?

How do you intend to balance providing for your spouse/partner vs. leaving a legacy for your children?

Estate Planning: Examples of Probing Questions

Between your children and spouse/partner?

Among the children of your blended family?

When you die, what is the potential for conflict?


Additional EstatePlanning Tips

Qualified Terminable Interest Property trust planning Helps provide for spouse and ensures children from a prior marriage are treated fairly

No contest clauses (a.k.a. poison pill or in terrorem clauses) Helps reduce rancor or litigation in estates by cutting an heir out of the will/trust if he or she contests the will/trust provisions and is unsuccessful


KIT INCLUDES:

PocketGuide

PlanningQuestionnaire

Strategy &

Case StudyWorkbook

Where Do I Start?

Request the“Yours, Mine & Ours” Kit


www.blendedfamilyestates.com

This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of

avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s)

addressed by this material. Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the

taxpayer's particular circumstances from an independent tax advisor.

19 of 3119 of 20For Life Insurance Producer Use Only. Not for Use with the Public.


Investment and Insurance Products: Not a Deposit – Not FDIC Insured – Not Insured by any Federal Government Agency –

No Bank Guarantee – May Lose Value

Pacific Life Insurance CompanyNewport Beach, CA

(800) 800-7681 * www.PacificLife.com

Pacific Life & Annuity CompanyNewport Beach, CA

(888) 595-6996 * www.PacificLife.com

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance

Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is

solely responsible for the financial obligations accruing under the products it issues. Insurance products and their guarantees, including optional benefits and any fixed

subaccount crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with

regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency or their affiliates from which these products are purchased. Neither

these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company.

MKT12-256B

PT-41222-02

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