This is the second in a two-part series of articles regarding life insurance and removing it from the taxable estate. The first article examined why life insurance is in the taxable estate and how to remove it, including the trap of the three-year lookback. This second article examines the application of the “Transfer for Value” rule and how to navigate around that rule while keeping the life insurance out of the taxable estate. In the first article in the series, we saw that life insurance is … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
Removing Life Insurance from the Taxable Estate
This is the first in a two-part series of articles regarding life insurance and removing it from the taxable estate. This first article examines why life insurance is in the taxable estate and how to remove it. The second article will examine the application of the “Transfer for Value” rule and how to navigate around that rule while keeping the life insurance out of the taxable estate. First, why is life insurance in the taxable estate? Section 2042 causes inclusion in your estate if the life … [Read more...] about Removing Life Insurance from the Taxable Estate
Beneficiary Designations and Other Non-Probate Transfers
Beneficiary designations and other non-probate transfers are an often-overlooked part of estate planning. They are overlooked by clients and sometimes even by professionals. When planning what would happen to your assets at death, most of us think, “oh, that’s simple, I need to do a Will to take care of that!” But, that’s just part of the process. You almost certainly have assets that are controlled by beneficiary designations or other non-probate transfers. Let’s look at an example. Mary … [Read more...] about Beneficiary Designations and Other Non-Probate Transfers
