Best Term Life Insurance Quotes Ownership?
My wife and I are in our 40's and 50's. We have created A/B trusts and transferred our assets to them, and expect to own estates that will benefit from the estate tax saving these trusts afford.
We lately both purchased $1M 10-year renewable term life insurance policies that we expect to hang on to for 10 years. We chose not to use life insurance trusts because the purpose of the policies is to replace the lost income of the deceased spouse if one of us dies relatively soon, not to increase our final estate, and the trusts are somewhat costly. We respectively specified our own trusts as the beneficiaries, because we want the disposition of assets specified there to be used for this money. The trusts provide for the income, and principle if needed, to be paid to the spouse, and for the remainder to be salaried to our child at the remaining spouses death.
The question of ownership of the policies is smaller amount clear. My lawyer says that it doesn't kind much difference who owns them, because the value (estate) taxed is lone one year's premium, not the $1M. My accountant says that the $1M is taxed, and that respectively policy should be owned by the other spouse to avoid tax on that amount. A friend said that there's no way to avoid or significantly lessening the tax, so just sign out the ownership as is (each spouse owns their own policy). A further fly in the ointment is that the insurance company (Massachusetts SBLI) make some forms of trust ownership more difficult and costly.
I'm confused. What ownership is the best? What is the benefit of that choice?
Answers:
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A very informative website, kindly stay a minute surrounded by website and check
Related Questions:
We lately both purchased $1M 10-year renewable term life insurance policies that we expect to hang on to for 10 years. We chose not to use life insurance trusts because the purpose of the policies is to replace the lost income of the deceased spouse if one of us dies relatively soon, not to increase our final estate, and the trusts are somewhat costly. We respectively specified our own trusts as the beneficiaries, because we want the disposition of assets specified there to be used for this money. The trusts provide for the income, and principle if needed, to be paid to the spouse, and for the remainder to be salaried to our child at the remaining spouses death.
The question of ownership of the policies is smaller amount clear. My lawyer says that it doesn't kind much difference who owns them, because the value (estate) taxed is lone one year's premium, not the $1M. My accountant says that the $1M is taxed, and that respectively policy should be owned by the other spouse to avoid tax on that amount. A friend said that there's no way to avoid or significantly lessening the tax, so just sign out the ownership as is (each spouse owns their own policy). A further fly in the ointment is that the insurance company (Massachusetts SBLI) make some forms of trust ownership more difficult and costly.
I'm confused. What ownership is the best? What is the benefit of that choice?
Answers:
http://thisin.pa-club.com
A very informative website, kindly stay a minute surrounded by website and check
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