BROWSE

Waterfall Concept

What is 'Waterfall Concept'

A life insurance plan that provides a tax benefit in regards to intergenerational transfers of wealth. The concept occurs when a tax-exempt insurance policy is rolled over to a child or a grandchild. The origin of this term is derived from the fact that this insurance plan is similar to waterfalls in that it only flows downwards.

Explaining 'Waterfall Concept'

The tax benefit occurs when the initial insurance policy is rolled over to the child or grandchild. After the transfer there are no more tax breaks, and so any funds that are withdrawn from the policy are subject to normal tax liability. However, clients can implement different variations on the waterfall concept to meet different objectives.


Further Reading


Wood and Waterfall: Puppetry training and its anthropology
www.tandfonline.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Bounds on the value of waterfalls: a case study from a hydropower projectBounds on the value of waterfalls: a case study from a hydropower project
www.tandfonline.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Performance evaluation of dynamic monitoring systems: the waterfall chartPerformance evaluation of dynamic monitoring systems: the waterfall chart
www.tandfonline.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Two adjustable waterfalls for evaluating fish jumping performanceTwo adjustable waterfalls for evaluating fish jumping performance
www.tandfonline.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Applying Agile Methodology to regulatory compliance projects in the financial industry: A case study researchApplying Agile Methodology to regulatory compliance projects in the financial industry: A case study research
www.journalofappliedresearch.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Adopting a combination of Scrum and Waterfall methodologies in developing Tailor-made SaaS products for Thai Service and manufacturing SMEsAdopting a combination of Scrum and Waterfall methodologies in developing Tailor-made SaaS products for Thai Service and manufacturing SMEs
ieeexplore.ieee.org [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Soft mode dispersion and 'waterfall'phenomenon in relaxors revisitedSoft mode dispersion and 'waterfall'phenomenon in relaxors revisited
www.tandfonline.com [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …

Tourist carrying capacity in Huangguoshu waterfall resortTourist carrying capacity in Huangguoshu waterfall resort
en.cnki.com.cn [PDF]
… of animism, shamanism and so on), how can the puppeteer work with opposing concepts of inanimate … This concept, therefore, is associated less with the development of a puppet character expressed through the skill … Wood and Waterfall: Puppetry training and its anthropology …



Q&A About Waterfall Concept


What does this article mainly discuss?

This article mainly discusses Waterfall Concept.

What is the tax benefit of this insurance plan?

The tax benefit occurs when the initial policy is rolled over to a child or grandchild.

Why should clients consider implementing variations on their own life insurance plans before they die?

Clients should consider implementing variations on their own life insurance plans before they die because doing so allows them more control over how their money will be used after death, which may help reduce potential conflicts among heirs who may have differing opinions about what should happen with those funds after death."

What are two benefits of using this insurance plan as an estate planning tool instead of an inheritance tool?

Two benefits include avoiding probate fees and keeping assets within family lines rather than paying them out to strangers through probate court proceedings after death.

Who can implement different variations on the waterfall concept?

Clients can implement different variations on the waterfall concept.

How do you calculate taxes for each generation in a Waterfall Concept?

You calculate taxes for each generation by subtracting premiums paid from cash value and then multiplying that amount by applicable mortality rates and interest rates. Then, you add any additional deposits into the account, which are also subject to taxation. Finally, you subtract withdrawals from the account during that year and divide that number by your applicable mortality rate to get your taxable income per period of time (usually one year).