Life insurance in foreign trusts - tax trap for the unwary
Article Abstract:
Foreign trusts are becoming a more common asset protection plan for US residents because they avoid gift taxes, may avoid generation skipping tax and are taxed as a non-resident alien. The assets are also freed from US creditors though tax can still be collected from US assets. However, the income is included in the transferor's estate for estate tax purposes and is subject to a special excise tax on all property appreciation. The use of life insurance for liquidity brings up potentially adverse tax consequences through the excise tax that must be fully considered.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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Insurance in expert-system-prepared financial plans
Article Abstract:
Expert-system-prepared financial plans are becoming common, but financial planners should be aware of their limitations and focus on practice areas requiring special attention. The expert systems can provide good basic planning if the situation is uncomplicated but do not have the ability to manipulate unusual circumstances such as assets from divorce or when one spouse is already disabled. Five financial planning expert systems were evaluated: AAFINPLAN, PLANMAN, Client Profiling System, Personal Financial Planning System and Personal Financial Analysis.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
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