How To Avoid Estate Taxes On Life Insurance?
4330 POINTSview profileJerry Vanderzanden, CLU, ChFCCo-Founder, Coastal Financial Partners Group, CaliforniaTo avoid life insurance death benefits from inflating the taxable estate of the life insured, it would be necessary to ensure there are no incidents of ownership. There are a few ways this is normally done. One is to set up an Irrevocable Life Insurance Trust to be owner and beneficiary of the life insurance. Money for premiums could be gifted by the grantor (also insured) to the trust. Another way would be for adult children to own and be beneciary of the policy on the insured (parent).Answered on May 13, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaWith the unified credit exceeding 10 million dollars for married couples, most Americans may not need to create an irrevocable life insurance trust (ILIT) to own a life insurance policy. But they may need an (ILIT) to avoid their state of residence estate tax because most states did not replicate the federal law. If your assets and your desired death benefit exceed federal or state limits an ILIT may be the way to go. Some grantors use their children as policy owners as a tactical planning option as well. But ownership has its privileges which includes the child’s access to the policy or it’s draw backs by exacerbating the child’s total estate. Before moving forward with any estate strategies, seek out legal advice.Answered on May 13, 2013+01+1 this answer
0flag this answerview more answers by David Racich- 0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaWith the unified credit exceeding 10 million dollars for married couples, most Americans may not need to create an irrevocable life insurance trust (ILIT) to own a life insurance policy. But they may need an (ILIT) to avoid their state of residence estate tax because most states did not replicate the federal law. If your assets and your desired death benefit exceed federal or state limits an ILIT may be the way to go. Some grantors use their children as policy owners as a tactical planning option as well. But ownership has its privileges which includes the child’s access to the policy or its draw backs by exacerbating the child’s total estate. Before moving forward with any estate strategies, seek out legal advice.Answered on May 13, 2013+01+1 this answer 0flag this answerview more answers by David Racich
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