In this post we are going to look at the value of irrevocable life insurance trusts. However, before we examine these trusts, we must provide some background information. Federal Estate Tax Exposure An irrevocable life insurance trust can be useful if you are exposed to the federal estate tax. When you are planning your estate, you should evaluate all of your taxable resources so that you know if you do in fact have any estate tax liability. During the current calendar year, the amount …
Estate Planning Insurance FAQs
Life insurance is obviously a part of many estate plans. We would like to take a look at some frequently asked questions about taxes and probate as they apply to life insurance proceeds. I have been named as the beneficiary of a life insurance policy. Will I be required to report this as income when I ultimately receive the proceeds? The answer to this question is no. If you are the beneficiary of a life insurance policy the proceeds are not considered to be taxable income. Must I wait …
Life Insurance Can Be Estate Planning Solution
The process of estate planning can involve some tricky situations, and life insurance can sometimes be the solution. One such situation would be the matter of small business succession planning for business partners. Let's say that you have one partner in the business. If this partner was to pass away he or she is logically going to leave his or her share in the business to his or her family. For the purposes of our example no one in the family is capable of or interested in taking over …
Insurance Can Defray Long-Term Care Costs
Late last year the New York Times tackled the subject of long-term care insurance and whether or not it is wise for younger people to purchase this insurance. The first thing that should be considered is the fact that Medicare won't pay for long-term care. And, most senior citizens will need living assistance at some point in their lives. These two facts make advance planning a must unless you are someone who doesn't mind gambling with your future. Long-term care insurance is an option, …
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