Survivorship life insurance for estate preservation and creation
Article Abstract:
Second-to-die life insurance policies, more properly known as survivorship life insurance, pay benefits upon the death of the second insured to third parties, such as the children of the insureds. These policies are a valuable estate planning device for passing wealth to heirs or paying estate taxes. Estate planners should structure policy ownership to ensure exclusion of proceeds from the estate or address beneficiary contingencies. Survivorship insurance can be used to provide legacies to disabled dependents, unmarried persons, or charities.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1996
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Estate taxes - now or later?
Article Abstract:
First-to-die or second-to-die insurance coverage can preserve more of the inheritance for the beneficiaries than just delaying taxation until the second spouse's death while still providing the necessary liquidity. A trust composed of the first spouse's $600,000 marital deduction can accrue value to be passed to the beneficiaries without creating more estate tax. Paying the taxes at the first spouse's death can also allow the remaining assets to accrue value free from future estate tax obligations that may be at a higher rate.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
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Majority shareholder estate taxation and split dollar plans
Article Abstract:
The use of split-dollar insurance policies to avoid estate taxation for majority shareholders has been confusing because of complex incidents of ownership rules. However, precedent and new rulings supporting these policies, such as Letter Ruling 93-48-009, have helped to clarify this area of estate tax planning. Therefore, a careful examination of the existing case law and rulings can allow estate planners to structure split-dollar policies to keep the transactions estate tax free.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
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