If you want to make ensure that your estate is to your heirs instead of to the IRS, consider purchasing a guaranteed universal life survivor (GULS) plan. GULS is a special type of insurance, sometimes called “second-to-die life insurance” designed to provide funds after the second insured dies.Read More
Historically, one of the main reasons to set up an irrevocable trust has been to avoid or minimize any potential estate tax, but now there are other planning purposes for these trusts. An advantage of life insurance trust is that it removes the life insurance from the estate of the insured. You should carefully consider who the trustee is and discuss the ramifications with your attorney.Read More
An irrevocable life insurance trust is when the trust is the owner of the insurance policy, which keeps the proceeds of the life insurance out of the taxable estate. Also, gifts can be made to fund the premiums, which will ultimately reduce the taxable estate. After your death, the trust’s assets – also known as the insurance proceeds – are available to your beneficiaries income-tax-free.Read More
Estate tax is imposed on the transfer of the “taxable estate” of a deceased person, which can also include payment of life insurance benefits to beneficiaries.Read More
The transfer of property after a policyholder’s death can be a complicated processRead More
The term “trust fund” might elicit an image of a spoiled rich kid living off their parent’s money.
In reality, many parents use the proceeds from a life insurance policy to set up trust funds that provide financial payments to their children and limit their ability to spend all of the money at once.Read More
If upon death, you or another income-earning family member has earned a large amount of lifelong income, it’s another near certainty that any survivors will have to pay death-related taxes.Read More