Current Comment
Notice 2009-48 Provides Guidance on §101(j) EOLI RulesBy Robert Adler, J.D.
The most important planning element that emerges from §101(j) is the need to obtain the consent of the insured party prior to the issuance of an EOLI policy.
Should the Basis of a Life Contract be Adjusted by Mortality Charges?By Robert Adler, J.D.
IRS rules that in life settlements, or any other situation that can arguably be assimilated to a sale of property and thus brought under §1001, the basis of a life insurance policy should be adjusted by deducting mortality charges from basis.
Tax Proposals Target Transfer Tax Valuation Discounts By Robert Adler, J.D.
While these are just proposals the President hopes to get through Congress individuals inclined to enter into affected transactions may elect to proceed before windows of opportunity potentially close.
GST Tax Planning: The Key Question to Ask a Middle Generation ProspectBy Robert Adler, J.D.
A middle-generation prospect who already has accumulated a substantial estate and who still has time to grow a capital base is among the most desirable of clients. But how do you find and market to this audience?
Your Clients Buy-Sell Agreement: Ticking Time Bomb or Reasonable Resolution? By Z. Christopher Mercer, ASA, CFA
Buy-sell agreements are some of the least understood, yet most important corporate documents in your client’s corporate files. Nearly every business of any size with more than one shareholder has—or should have—a buy-sell agreement.
Saving for College: State-Run Plans vs. Effective Estate PlanningBy Sanford J. Schlesinger, Esq and Christina L. Porter, Esq
For wealthier and more sophisticated investors 529 Plans may not be the best option to financially prepare for college.
Happenings in AvalonBy Robert Adler, J.D.
Activity in parallel universe reveals vast untapped market for life insurance on earth. (This is not an April Fools Joke.)
What Split-interest Strategies Make Sense in a Low Interest Rate Economy?By Robert Adler, J.D.
The tables in this Current Comment provide some quick answers.
Termination of Policy Subject to Loan Triggered Taxable IncomeBy Robert Adler, J.D.
Not only may cash values accumulate without current taxation, but this untaxed income may even be utilized by the policy owner, still without income recognition, in the form of policy loans. But what happens if the policy is terminated?
Practical Succession Planning for the Family-Owned BusinessBy Sebastian V. Grassi, Jr., Esq. and Julius H. Giarmarco, Esq.
An effectively developed succession plan provides for a smooth transition in management and ownership with a minimum of transfer taxes.
Market Declines and IRAs By Robert Adler, J.D.
Review how recent market declines could impact owners of traditional or Roth IRAs.
The Leveraged Family Business CLATBy Douglas W. Stein, Esq.
The tax advantage of a CLAT is that there is a current deduction for the value of the annuity interest even though the charity receives its annuity interest over time. The corollary is that the beneficiaries must wait until the charitable term has expired
Economic Downturns and Estate PlanningBy Robert Adler, J.D.
Families with declining asset values may need to revisit the assumptions made in their estate plans.
Concepts Illustrated
Stock Redemption and Cross Purchase Agreements, Family Attribution, Business Succession Planning...
Key Person Insurance, Executive Bonus, Deferred Compensation, Rabbi Trusts, Secular Trusts, Split-Dollar, ...
Wills, Trusts, Wealth Transfer Tax Planning, GST-exempt Trusts, GRATs, IDITs, QTIP Trusts..
Disability Income Insurance, Long Term Care Insurance, Health Insurance, 529 Plans, Taxation of Investments...
Group Term Life Insurance, COBRA, Cafeteria Plans, Flexible Spending Accounts, Health Savings Account...
IRAs, SEPs, 401(k)s, Qualified Retirement Plans, ESOPs, Rollovers, Life Insurance in Qualified Plans...
Main Libraries
Planning Techniques, Wills & Trusts, Intestacy, Uses of Life Insurance, Charitable Giving, Community Property...
Proprietorships, Partnerships, LLCs & Corporations, Buy-Sell Agreements, Family Limited Partnerships...
The Federal Estate & Gift Tax, The Generation Skipping Tax, ILITs, State Death Taxes...
Taxation of Life Insurance, 1035 Exchanges, Transfer For Value Rule, UL and VUL, Annuities...
Gifts to Minors, Charitable Giving, Crummey Powers, Gifts of Life Insurance...
Contribution and Deduction Limitations, Rollovers, Minimum Distribution Rules, Roth IRAs, Employer Sponsored Plans...
Section 162 Plans, Non-Qualified Deferred Compensation, Split-Dollar, Stock Options...
Defined Contribution and Defined Benefit Plans, Profit Sharing and 401(k) Plans, ESOPs, Tax Rules...
Planning Techniques, Gains and Losses, Exclusions From Gross Income...
Business Health Insurance, Disability Insurance, Group Life Insurance, Welfare Benefit Funds and VEBAs, Cafeteria Plans...
Types of Investment Vehicles, Taxation of Investments, Investment Strategies...
Financial Planning Concepts, Financial Planning for Special Circumstances...
Topics of special interest to financial advisors.
Covering Wills, Trusts, Intestacy, Insurable Interest, Insurance Exemption Laws...
Tax COLAs, Qualified Plans, IRAs, 7520 rate...
Various Planning Scenerios...
A listing of all Main Libraries.
Selected Highlights
Significant tax advantages can be achieved by widows and widowers who are beneficiaries of credit shelter trusts (established upon the deaths of their respective spouses), through the purchase...
In the case of an individual or a small business the creation of substantial cash values through a life insurance contract can be an effective asset accumulation vehicle.
An important area of estate planning is dealing with tax-deferred retirement accounts. Unfortunately, this is an extremely complicated area of law. Becoming familiar with the issues is crucial for financial advisors
A review of the circumstances in which life insurance valuation is called for, and the various measures that are used.
The key person`s death is certain to disrupt the firm, and probably result in definite and tangible losses.
A knowledge of wills and intestacy laws is important to the financial advisor from the standpoint of service, and can also prove extremely profitable to him in sales activities.
The will approach is based upon one of two major assumptions. At the time of the interview, either the prospect has a will or doesn`t - there`s no middle ground.
It would seem that if these transactions are to be invalidated by reason of the insurable-interest rule, the winner should be the insurance company.
The unique characteristics of life insurance make an irrevocable life insurance trust a unique hedge against both tax uncertainty and the contingency of mortality.
As a general principle, the proceeds of a life insurance policy paid by reason of the insured`s death are exempt from federal income tax. The transfer for value rule is an exception to this general principle and is discussed in this article.
Under common law minors cannot own property in their own names. This does not mean that a minor cannot inherit an IRA or be designated as the beneficiary of an IRA; it means that their are special considerations.
What happens if only a portion of an existing annuity contract is exchanged for a new contract, while the balance of the original contract is retained? Is it a qualified exchange transaction under §1035?
If there were no insurance exemption from the claims of creditors, the purpose for owning insurance would be undermined. The financial security of an insured`s dependents would depend upon whether the insured was solvent or insolvent at the time of death.