Insurance policy may be an ideal asset for a gift by the insured
Article Abstract:
Gifts of life insurance policies can be used to generate substantial gift, generation-skipping transfer tax and estate tax savings. Valuation methods include the fund value, the reserve value and the cash surrender value. The cash surrender value is the easiest. The $10,000/$20,000 annual gift tax exclusion applies when the life insurance policy is transferred and the donor places no restrictions on the use and enjoyment of the property or its income. Death benefits can be expected to exceed cash values and premium cost, so the leverage aspect of a life insurance policy transfer is important.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1992
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Drafting to achieve maximum flexibility in the estate plan
Article Abstract:
Estate planners must expect to make continuous modifications due to changes in law and in client objectives. Some important areas that tend to need modification are trustee removal and appointment power, asset protection, investment strategies and guardianship. Understanding such issues allows planners to draft flexible revocable and irrevocable instruments for their clients.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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