The dilemma of the large premium case (or not having enough beneficiaries is Crummey)
Article Abstract:
Federal estate taxes are a common source of revenue and Bill Clinton's tax plan may include an increase in the marginal top bracket and a reduction in the lifetime unified credit equivalent. Therefore, the need for life insurance to reduce the amount of money in taxpayers' estates is even more crucial. However, planning must include consideration of current gift tax liabilities when the life insurance premiums exceed the amount exempted from gift taxes for beneficiaries. Several planning options are included, such as a split-dollar agreement and using term or universal life insurance.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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Ascertaining objectives
Article Abstract:
It is important for estate planners to ask the clients' objectives before creating an estate plan because the objectives may not be clear or the clients may have already discounted the objectives as impossible. Three examples concerning survivorship life policies illustrate the potential differences in and value of understanding clients' objectives because one wanted to pass inherited wealth to his children, another wanted to share his estate equally between the children while giving only one control of the family business and the third wanted to bequeath to nieces and nephews.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
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The tax economics of a Qualified Personal Residence Trust
Article Abstract:
A Qualified Personal Residence Trust (QPRT) can be an effective planning tool but the tax economics must be clearly understood. The QPRT interest is split between the grantor who must remain in residence and one or more remaindermen. The most effective planning would be a short QPRT with a lease because with a longer one there is a greater chance of the grantor dying, resulting in the property reverting to the grantor's estate, cancelling all tax benefits. The lease or repurchase of the residence must be at fair market value but is tax free if done during the QPRT term.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
User Contributions:
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- Abstracts: When should the option to split gifts be chosen? State statute does not revoke beneficiary designation after divorce
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