Category Archives: Life Insurance
What Is Purpose of an Irrevocable Life Insurance Trust?
Irrevocable Life Insurance Trusts, or “ILITs” are life insurance policies owned by irrevocable trusts used to manage taxes on estates. There are complexities to using an ILIT, but the benefits for some people could be big, according to the article “What Advisors Should Know About Irrevocable Life Insurance Trusts” from U.S. News & World… Read More »
Stretch Out IRA Distributions, Even Without ‘Stretch’ IRA
It’s sad but true: the SECURE Act took away the long lifetime stretch that so many IRA heirs enjoyed. It was a great efficiency tool for family wealth transfer, but there are ways to fill the gap. A recent article “3 Strategies That Dry Your Stretch IRA Tears” from InsuranceNewsNet.com explains what to do… Read More »
Will I Owe Taxes on My Life Insurance Benefit?
MoneyWise’s recent article entitled “Are Life Insurance Benefits Taxable?” explains that, although the proceeds from a life insurance policy are usually tax-free, there are some exceptions. Life insurance payouts may be subject to taxes in the following situations: A high-value estate. The federal estate tax exemption is $11.58 million this year, so if you… Read More »
Is It Time for a Pre-‘Check-out’ Checkup?
Federal News Network’s recent article entitled “Divorced, kids grown, moving? Time for a pre-checkout checkup!” says life changes mean changes for your estate plan, like when your children grow up and leave the home. Let’s review some of the key components of a complete estate plan. A basic estate plan includes powers or attorney… Read More »
Do I Need More Than a Will?
If you die without a will (i.e., intestate), a court will determine who inherits your assets and who would care for any surviving children as a guardian. CNBC’s recent article entitled “A will doesn’t cover all your bases when it comes to end-of-life decisions. Here’s what else you need” explains that some assets pass… Read More »
Avoid These Mistakes with Your Estate Plan
Estate planning means putting together a plan on paper, following the letter of the law, when it comes to what should happen to assets when you die. It also includes your decision regarding who will care for your children, who will make decisions on your behalf if you are unable and what kind of… Read More »
What Should I Know about Beneficiaries?
When you open almost any kind of financial account, like a bank account, life insurance, a brokerage account, or a retirement account – the institution will ask you to designate a beneficiary. You’ll also name beneficiaries when you create a will or other legal contracts that require you to specify someone to benefit. With… Read More »
Estate Planning and Probate Planning
The nature of the probate process varies from state to state, and even varies from county to county. However, the nature of the process is the same. A court has to validate a will to ensure that it meets the legal requirements of the state before assets can be distributed, explains the article “Probate… Read More »
Coronavirus Makes Estate and Tax Planning an Urgent Task
The Covid-19 pandemic has brought estate planning front and center to many people who would otherwise dismiss it as something they would get to at some point in the future, says the article “Estate and Life Insurance Considerations During the Covid-19 Pandemic” from Bloomberg Tax. Many don’t have a frame of reference to address… Read More »
What’s the Best Way to Make a Life Insurance Claim?
You might get a phone call, a letter or even a text that claims you are the designated beneficiary of their life insurance policy. If and when that happens, request the paperwork. When the person has passed away, it will make the request for the life insurance claim much easier. Forbes’ recent article entitled… Read More »