It’s a whole new world for estate planning – from an all-time high estate tax exemption that may soon be cut in half (without further action by Congress), to the prospect of higher taxes, larger inheritances, complicated family dynamics, rising rates of divorce and litigation, and electronic data – the list goes on and on. In this environment of uncertainty, estate planning attorney Marvin Blum provides these 10 questions that clients and their planners can explore to identify clients’ most pressing needs in this rapidly changing estate planning environment.
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One notable tax benefit of life insurance is that death proceeds are generally received by a beneficiary free of any income taxation. However, this benefit may be lost if a policy is transferred in a manner that the “transfer-for-value” rule is triggered, creating a “trap” for ordinary individuals who may transfer policies for estate or business planning purposes without recognizing that consideration is being provided for that transferred policy.
The information in this article describes why planners, tax advisors, and policyholders should be vigilant to ensure that no consideration exists or that the transfer falls within one of the exceptions to the transfer-for-value rule and can help to both avoid unexpected tax outcomes and ensure that the policy’s death benefit may remain income-tax free. Please note that New York Life Insurance Company and its agents do not provide tax or legal advice.
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For affluent individuals who are funding life insurance policies in an irrevocable trust, using the “Split Dollar” technique can be beneficial in getting around the gift tax on premiums. In this video, Matt Pate, CVP with The Nautilus Group®, a service of New York Life, describes the use of the “Split Dollar” technique, its economic benefits, and when to unwind a split dollar obligation.
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Life insurance benefits are typically free of income tax but can be subject to estate tax, which in some cases may be as high as 40%. Transferring ownership of a policy to a trust or third party is a common way to reduce that tax liability, however, the insured must live for 3 years after the transfer in order to benefit from this strategy. In this interview, Winstead PC attorney John Bergner describes ways to accomplish this tax saving strategy without being subject to this 3-year tax rule. Listen to his insights and learn how you can better protect your assets from potential estate tax.
New York Life Insurance Company and its agents do not provide tax, legal or accounting advice. Winstead PC and John Bergner are not affiliated with New York Life Insurance Company or its affiliates. SMRU: 1918520 Exp: 11/1/2023
Tax law repeal is likely on the horizon, but the timing and scope are still uncertain. Creating an irrevocable trust to utilize the increased lifetime gift tax exemption amounts may be a wise move, and this article shows you how you can add flexibility to the trust so you can adapt to changes as they are enacted.
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Watch this short video to see how a special needs trust can help you protect your family’s assets and provide lifetime financial stability for individuals with special needs.
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Watch this short video to see how a supplemental life insurance retirement plan – or SLIRP – can allow you to get money when you want to, or need to, without hassle.
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Many of the common income tax deductions taxpayers were used to taking have been permanently eliminated, suspended, or limited until 2026, due to the Tax Cuts and Jobs Act of 2017.
These changes, coupled with the increased applicable exclusion amount, have shifted planning strategies from a focus on reducing estate taxes to a focus on reducing income taxes.
Have a look at this article that describes how non-grantor trusts can reduce income tax through enhanced deductions, then let’s explore how this technique can work for you.
Please note, we don’t provide tax or legal advice.
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Growing up on a farm in a place called Paradise Hill sounds like heaven for anyone, but at 6 years old, Nautilus Member Tyson Vines watched as his family’s dairy business was sold off, piece by piece, just days after losing his grandfather.
“Vines View Farms was no more.”
Years later, Tyson got a call from his father that made him wonder if history was going to repeat itself. Watch Tyson’s story (2:55) to learn how his father created a new legacy for the Vines family.
“What do you do when you’re full of life, and you learn there’s a fast-growing cancer inside of you?”
Nautilus Member Bill Lyon shares the story of his client, Noelle, a free spirit who would rather spend her time helping others than think about herself.
Watch Bill’s story (3:01) to see how this remarkable woman reacted to the news that she would not watch her daughters get married, after all.
Life can often change at the drop of a hat. Have you considered your family’s financial well-being? Find out if an Irrevocable Life Insurance Trust is the right choice for you.
“The first life insurance death claim I delivered was to my mom, for a policy I wrote on my dad’s life.” Listen to Nautilus Member Gib Surles share his personal story about how life insurance made a difference for him.