Motherhood Moment, an advice mecca for moms, recently shared with readers guidance from the latest McManus & Associates’ educational conference call (we love the idea that moms can benefit from our focus series, because our practice not only provides asset protection, but helps continue a legacy of family values through generations). In a Motherhood Moment post titled, “Thrifty Thinking: Estate Planning with Life Insurance,” it’s noted that the use of life insurance in one’s estate plan can provide significant protection for loved ones, whether as a wealth replacement strategy combined with philanthropic giving or as a safeguard to cover expenses and taxes.
The post highlights the most important considerations when planning with life insurance and lists the 10 questions below for which Motherhood Moment readers should find answers:
- If a life insurance policy is owned by a trust, what is the ongoing maintenance required for the strategy to succeed most effectively?
- What are Cristofani beneficiaries and how can they make a life insurance trust even more gift tax efficient?
- How can insurance be utilized to facilitate a business succession plan?
- Term, whole life, 2nd to die – from a layman’s standpoint, what are the unique benefits of each?
- How can ownership and beneficiary designations for a life insurance policy affect the taxable assets of the estate?
- How do non-citizens avoid qualified domestic trust requirements with a life insurance trust?
- What are some strategies to avoid the three-year look-back period when existing insurance is transferred to a trust?
- Annual exemption gifts can fund a life insurance trust gift tax-free, but what about generation-skipping tax issues? How is the trust affected?
- When the terms of an irrevocable trust do not reflect the wishes of the parties, what options are available?
- How can life insurance be used as a wealth replacement strategy with charitable giving?
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