“…an insured may unintentionally retain or acquire ‘incidents of ownership’ in a policy, which can inadvertently trigger estate inclusion and tax exposure.”
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Category Archives: Estate Planning
- April 16, 2015
“As the use of dynasty trusts increases, the use of Trust Protectors is gaining momentum as a way to provide oversight of the trustee’s actions and ensure the settlor’s goals are fulfilled.”
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- April 16, 2015
“This is a direct rejection of the contrary position taken by the IRS in Chief Counsel Advice 201208026, and it reinforces the utility of Crummey powers to qualify gifts to an irrevocable life insurance trust or other irrevocable trust for the gift tax annual exclusion.”
To read the full report, click here.
Posted in: AALU, AEG, Blog, Breaking News & Industry Updates, Estate Planning, Life Insurance, Tax Planning
- April 02, 2015
“Estate and business succession planning often involves life insurance, including transfers of existing policies to irrevocable life insurance trusts (“ILITs”) or other parties. Understanding the transfer for value rule and its potential tax impact is critical when considering such policy transfers.”
To read the full report, click here.
- March 29, 2015
“Some individuals who set up grantor retained annuity trusts, or GRATs, in previous years now are swapping out the investments they put into those trusts—and replacing them with other holdings, cash or promissory notes that are of equal value today.”
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- March 17, 2015
“…researchers and medical staff working with patients near the end of life have grown increasingly disenchanted with advance directives, including living wills and powers of attorney for health care.”
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- March 16, 2015
“The Nebraska Supreme Court held that general principles of the duties of a trustee, as enunciated in Nebraska state statutes, overrule a specific article in the trust which exonerated the trustee from paying any premiums or being responsible for the payment of life insurance premiums.”
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- March 12, 2015
“Grantor trust sale transactions, like installment sales, self-canceling installment notes (“SCINS”) and private annuities, have been consistently used as legacy management and business succession planning tools. In recent internal guidance and estate tax audits, however, the IRS has rejected some generally accepted approaches to conducting these transactions….”
To read the full report, click here.
- February 26, 2015
“The increased gift and generation-skipping transfer tax exemptions provide greater opportunities to benefit future generations during life. Clients with a more modest net worth, however, need transfer planning options that balance a desire to make lifetime gifts with the need to retain adequate funds to support their needs. A spousal lifetime access trust (a so-called “SLAT”) may provide one such option.”
To read the full report, click here.
- February 21, 2015
“If you have just gotten divorced, you may be focused on getting on with your life. But make sure you also have updated the financial arrangements that kick in at your death.”
To read the full article, click here.