Survivorship Guaranteed Purchase Option for Estate Planning

This document is a guide that outlines the Survivorship Guaranteed Purchase Option (SGPO) introduced by John Hancock, aimed at addressing the estate planning needs of high-net-worth clients amidst changing tax laws. It details the impending reduction of the federal lifetime estate and gift tax exemption from $13.61 million to approximately $7.2 million per person, effective January 1, 2026. The guide explains how life insurance can be a critical tool in estate planning, particularly for covering estate tax liabilities. It provides a hypothetical example involving a couple, Heather and Mark, who face increased estate tax liabilities due to the exemption sunset. The SGPO allows clients to purchase an additional survivorship policy without additional underwriting, thus offering flexibility as tax laws evolve. The guide emphasizes the importance of timely action in estate planning and the potential risks of waiting, while also detailing the features and conditions of the SGPO.