Life insurance and the family limited partnership
Article Abstract:
Estate planners using family limited partnerships (FLPs) should consider funding the FLPs with life insurance. FLPs are used to reduce gift and estate taxes, to provide a transfer of wealth to subsequent generations and provide asset protection for limited partners. Life insurance has traditionally been used to fund irrevocable life insurance trusts, but FLPs can be funded this way as well and offer greater flexibility. The tax advantages of transferring FLP interests stem from the minority interest and lack of marketability discounts that apply to such interests.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Viatical settlements: perspectives of investors, regulators, and insureds
Article Abstract:
Viatical settlements involve the sale of an insurance policy owned by a person who is expected to die within 2 years to a group of investors for less than its face value. The settlement provides the person with cash while the investors make a substantial return upon the person's death, once the expenses of the firm handling the purchase are deducted. These settlements are often used by AIDS patients but medical advances may eliminate the settlements' investment value, undercutting a source of funds for AIDS patients.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
The pension maximization strategy
Article Abstract:
Several factors influence the desirability of the pension maximization strategy, wherein a retiree opts for buying life insurance rather than taking a joint-and-survivor pension. Available interest rates, the prevailing and expected inflation rates, and mortality are among the factors considered. Recent inflation trends make this option more attractive, while interest trends have a mixed influence. It is still a preferable strategy for some couples, especially for female or younger retirees.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Some observations on SEC rule 144 and venture capital limited partnerships and corporations: revisited. Some comments on the usual Rule 144 scenario and related matters
- Abstracts: Freedom of establishment in the EC economic partnership agreements: in search of its direct effect on direct taxation
- Abstracts: Different facets of a strategic partnership: how the EU is viewed by political and business elites, civil society and the press in India
- Abstracts: 'First experiences' with the new Austrian Arbitration Law: a German perspective. Austria adopts the UNCITRAL Model Law
- Abstracts: Rapprochement between the EU and the UN: history and balance of intersecting political cultures. Normative power Europe and the problem of legitimacy deficit: an Israeli perspective