Die Rich and Make Your Heirs and Charities Happy

Howard Kaye’s mantra is all about creating and preserving wealth. He’s a nationally known expert walking in the footsteps of his father, Barry, who was a pioneer in the wealth creation and preservation field. Barry wrote the best-sellers, “Die Rich and Tax Free,” “Die Rich 2,” “Live Rich” and You Buy, You Die, It Pays!”


Howard was president of Barry Kaye Associates and grew up under his father’s tutelage long before launching Howard Kaye Insurance Agency. SFBW interviewed Howard at his company’s headquarters in Boca Raton.


I understand you are pretty upfront about what you are all about?

We sell life insurance. We don’t hide behind another name. My father started with the attitude that we create wealth for people and there is no need to apologize for that! My father realized early on that to have the most impact on people and to be successful, he would have to reach as many people as possible. His attitude was, “I’m a business man. I’m going to create a business – a marketing business.” He started in 1963 and never did cold calls. He had 100 agents at one time and had agents coast to coast.


When I was 20, I was taught about a program called single-premium life insurance, which was an alternative to CDs and money markets. We had an ad in the Los Angeles Times and I stayed at home to get the calls while my family went to Houston where my sister was giving birth. I got 200 phone calls, and by the end of the week, I had sold over $2 million of the product. My father was blown away.


We ran ads in Fortune and Forbes that showed people how to minimize their estate tax costs. Before CNBC existed, we were on the Financial News Network.


Why does somebody who is wealthy need life insurance?

To expand and preserve wealth for future generations. Take a person who is worth $20 million. The government can take income and estate taxes and the kids may end up with only $10 million. That can easily be avoided.


Some people simply see life insurance as an investment alternative. As an example, let’s say your net worth is $10 million and you invest $250,000 a year. Give me that $250,000 a year and I might be able to create an additional $15 million free of income and estate taxes. Properly structured, it is often placed in an irrevocable life insurance trust outside the estate.


Some of our readers are complaining that they are hitting 70 and a half and being forced to withdraw money from their IRA even though they don’t need the income. What do you do recommend?

Take the required minimum distribution, or perhaps the annual income generated by the IRA, and buy a life insurance policy. When the insured person dies, their loved ones get the death benefit tax-free. The balance of the IRA can even be donated to the charity. This IRA maximization strategy can increase the ultimate value of your IRA many times over. There are scenarios where a $1 million IRA can yield $2 million to the heirs and $1 million to the charity. That’s much better than the heirs being taxed at a federal estate tax rate that can hit 40 percent – not to mention the heirs would have to pay an income tax on that, too.


I’ve heard there is something you can do involving annuities and charities?

Yes. Let’s say you have $1 million in appreciated stock and don’t want to sell it and pay the capital gains. You can gift that $1 million in stock to your favorite charity and receive an annuity that gives you income for the rest of your life. You don’t pay taxes and you get an income tax deduction for the donation. The charity immediately receives a significant donation and has no financial burden since the income is provided by a highly rated insurance carrier. Using this approach, you have turned an idle asset into a vehicle that benefits charity while providing lifetime income and tax advantages.

Howard Kaye Insurance Agency LLC

President: Howard Kaye

Website: howardkayeinsurance.com

Phone: 561.417.5883

Email: hkaye@howardkayeinsurance.com

You May Also Like

Fresco Retail Group Plans Expansion After Securing Financing from Amerant Bank

The loan will help the grocery chain acquire Fresco y Más.

Fortune Magazine Recognizes Fifth Third as One of World’s Most Admired Companies

Fifth Third has been consistently recognized as one of the few U.S.-based banks to be featured in Ethisphere’s World’s Most Ethical Companies list.

Forbes Magazine Recognizes Foreman Cook Group as One of the Best Wealth Management Teams in Florida

The financial advisement firm is based in Fort Lauderdale.

Amerant Appoints Matthew Bruno as Miami-Dade Market President and Maria Olivera as Community Relations Director

The promotions aim to strengthen the representation of the local community while boosting business development growth.

Other Posts

Sabal Development Offers Luxurious Penthouse in Brickell House for Nearly $15 Million

The residence was designed by TOGU Design and is being listed by Lourdes Alatriste of Douglas Elliman.

JLL Chosen to Manage Leasing of a New 51-Story Office Tower in Brickell

The property will become Miami’s newest Class A-plus tower.

New Affordable Health and Living Community for Seniors in Broward County Completes Construction Milestone

Douglas Gardens Residences is expected to be completed in late 2024.

Sollis Health Opens New Center in Boca Raton as Part of Nationwide Expansion

The members-only concierge emergency care provider offers annual membership beginning at $3,500, or $292 per month.

Drew Limsky

Drew Limsky



Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.