The ability to use a Universal Life Plans to not only transfer tax-free death
benefits but also tax-free cash values allows the transfer of assets between generations.
The strategy is to name a contingent owner on the policy of a Joint Last-To-Die or
Multi-Life policy. This allows the cash value to be passed to the contingent owner upon
the death of the initial owner without taxation. In turn, the new owner can name a new
contingent owner, which continues the strategy.