How the Gifting of a Life Insurance Policy Could Trigger a Gift Tax

How the Gifting of a Life Insurance Policy Could Trigger a Gift Tax

Payment by a client of one or more premiums would be considered a gift if the policy itself was owned by another person or party. The amount of the gift is the full premium paid. A reduction in the amount of the taxable gift would be allowed for the actuarial value of any interest in […]

The Gifting of Life Insurance to Save on Taxes

The Gifting of Life Insurance to Save on Taxes

An outright gift of a life insurance policy is a time-tested technique for accomplishing a number of estate planning objectives including, but not limited to, saving federal and state death taxes and protecting proceeds from the claims of the original policyowner’s creditors. The primary advantage of an outright gift of a life insurance policy is […]

4 Questions to Ask Regarding the Gifting of Life Insurance

4 Questions to Ask Regarding the Gifting of Life Insurance

As is the case with any other gift tax analysis, when life insurance is the subject of a transfer, the planner must ask four questions. In this article, we will review those four questions, and what each of them means. They are: Was there a gift, a gratuitous transfer for less than adequate and full […]

The 7 Gift Tax Advantages of Life Insurance

The 7 Gift Tax Advantages of Life Insurance

Planners must be constantly aware of the gift tax implications of transactions involving life insurance. Gifts of life insurance, as opposed to gifts of income-producing property, are favored vehicles for many reasons. These include: A gift of life insurance may increase the donor’s spendable income since, after the gift, the donee often pays the premiums […]