Trusts & Estates/WealthManagement.com this week published an article from McManus & Associates Founding Principal and top AV-rated Attorney John O. McManus. The piece, “Top 10 Considerations for Estate Planning with Life Insurance,” was also be blasted out in the publication’s e-newsletter on October 30th.
The contribution shares the following 10 questions for advisors to discuss with clients:
- If a life insurance policy is owned by a trust, what’s 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 used 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 (QDOT) 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 transfer (GST) tax issues? How is the trust affected?
- When the terms of an irrevocable trust don’t reflect the wishes of the parties, what options are available?
- How can life insurance be used as a wealth replacement strategy with charitable giving?
To find out what advice John had for each of the above, check out his full article here.