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life insurance
- see gmail note for more details
- make ur revocable living trust the beneficiay of ur life insurance policy
- if u are married, assets left to a surviving spouse are exempt from the federal estate tax
- if ur estate passe on to someone other than a spouse, ur heirs may owe federal estate
- in 2007, this is levied on estates valued at more than 2 million, including the value of investments, ur home, the death benefit on ur life insurance policy --- add them all up, if they exceed 2 million, ur heirs may be stuck paying a tax on part of their inheitance
- if ur estate will be above the estate-tax threshold, u need to working with an estate attorney to set up what is known as "irrevocable life insurance trust"
- irrevocable life insurance trust
- the trust will be the "owner" of the life insurance policy
- ur beneficiaries will still receive every penny of the death benefit, but the value of the policy is exempt from the estate tax
- this kind of trust is very different from a revocable living trust
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