Current Comment
The Just Enough Funding Technique: An Innovative New StrategyBy Len Cason, Esq.
The just enough funding technique is designed to meet a married couples estate planning objective of funding a credit shelter trust at the death of the first spouse to die only to the extent necessary or desirable to avoid estate tax at the second death.
Cancellation of Policy Subject to Loan Can Generate Taxable IncomeBy Robert Adler, J.D.
The Atwood case underscores the painful income tax consequences which can accompany the lapsing or cancellation of a life insurance policy whose cash value has previously been substantially depleted through policy loans.
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.
Power of Appointment for Future FlexibilityBy Robert Adler, J.D.
Powers of appointment are a valuable tool in estate plans, because they allow for future flexibility in the ultimate disposition of the donors property which is placed in a trust.
What Split-interest Strategies Make Sense in a Low Interest Rate Economy?By Robert Adler, J.D.
Why is it that the value of the remainder under a GRAT is less if the section 7520 rate is lower, and why is that a plus?
Split Dollar Life Insurance Funding: You Mean People Still Do That? By Joshua E. Husbands, Esq. and J. Alan Jensen, Esq.
Despite the gloom and doom forecasted by many in the insurance industry and the legal profession, the final Regulations did not sound the death knell for split-dollar planning.
Crummey Powers And The Code Section 2036 Tax TrapBy Robert Adler, J.D.
The discussion illustrates how easily a couple might fall into the 2036 tax trap, even while engaging in otherwise sophisticated tax saving estate planning techniques.
Modification of Split-Dollar Arrangement Not a Material Change to Underlying Life Insurance ContractBy Robert Adler, J.D.
Notice 2008-42 provides guidance regarding the application of I.R.C. §§ 101(j) and 264(f) to life insurance contracts that are subject to split-dollar life insurance arrangements.
Revenue Procedure 2008-24 Finalizes Guidance on Partial ExchangesBy Robert Adler, J.D.
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?
Supreme Court Opens Door to Breach of Fiduciary Duty Claims Against Administrators of Defined Contribution PlansBy Rick Rosenblum, Esq., Thomas Sanders, Esq and Manuel Mungia, Esq.
The Court’s LaRue decision is a marked shift from its prior ruling that the ERISA provision concerning breach of fiduciary duties protects the entire plan, rather than the rights of an individual beneficiary.
The Leveraged Family Business CLATBy Douglas W. Stein
Learn about a technique that allows decedents to pass their closely held businesses to their beneficiaries through a testamentary CLAT.
Coordinating Retirement Accounts with Estate PlanningBy Keith Herman
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.
Using QPRTs to Maximum Advantage for Wealthy ClientsBy Jeremy T. Ware, Esq.
QPRTs have significant transfer tax benefits, as well as flexibility and asset protection advantages.
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, Joint Tenancy, Tenancy in Common, POD accounts, Custodial Accounts, Intestate Succession...
Irrevocable Life Insurance Trusts, Credit Shelter Trusts, GST-Exempt Trusts, Q-Tip Trusts, QPRTs, GRITs, GRATs...
Tax-Free Exchanges, Transfer for Value Rule, Creditors Rights, Advanced Planning with Life Insurance...
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
Just as amounts contributed to a qualified plan to fund retirement benefits are deductible by the employer, subject to certain limitations, so are contributions to maintain life insurance held to fund a death benefit.
I.R.C. §1035 permits owners of life insurance and annuity contracts to exchange their contracts for similar or related types of contracts without the recognition of any unrealized gain which may have accrued in the contract given up in the exchange.
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.
A middle-generation prospect who already has accumulated a substantial estate is among the most desirable of clients. But how do you find and market to this audience in these days of uncertainty over the estate tax.
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.
Under what circumstances will taxpayers qualify for tax-free capital gains and dividends?
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.
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.