Throughout the next six weeks we’ll be rolling out our top reasons for owning cash value life insurance. We’ll be releasing these posts during our Friday post. Today we start with reason number six on our list, the probate skipping process that life insurance uses when the death benefit is paid.
(Complete Show Notes Below)
In the 46th episode of the Financial Procast:
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It Appears James Gandolfini's Family May Get Whacked by the Estate Tax
If your email inbox looks anything like ours over the past couple weeks, you've likely heard about the supposed estate tax issues that acclaimed actor James Gandolfini's family is going to have with the IRS and the state of New York in regards to a rather large estate tax bill. For those that have missed the details, evidently Mr. Gandolfini's estate is worth more than $70 million and it would appear that his Estate Plan leaves a bit to be desired.
Today I thought we'd discuss a rather mundane topic, the Family Limited Partnership but one that carries great significance nonetheless. I'm like everyone else I suppose in that I tend to lean away from some of the more heady topics that dig really deep into the nitty gritty of insurance/financial planning topics. Why? Well mainly because I've been talking about them ad nauseam for the past 13 years and I have the attention span of three year old who's been loading up on red kool-aid and cadbury cream eggs (i.e. the easter candy hangover).
(Complete Show Notes Below)
In this 26th episode of the Financial Procast:
Estate Planning-It's Not Just for Rich People
When's the last time you reviewed your beneficiary designations on your life insurance policy(s), retirement accounts (IRA's, 401k's, etc.) and your will/trust/medical directives? If you're anything like most of us, you’ve probably not re-visited your documents as recently as you should have.
In this Broadcast of the Financial Procast:
U.S. savings accounts are paying less than a quarter of a percent
A new book claims that Americans may have lost their financial minds
Selling life insurance just got harder?
Whose face should be on the trillion dollar coin?
The Estate Tax is set for a nasty reset come the end of this year if Congress does not act to extend current legislation, or create new. We've steered clear of political discussions on the Insurance Pro Blog, and we still intend to do that. Today's discussion will attempt to be as objective on the topic as possible, and bring our perspective to the table about what a regression to a $1 million dollar exemption and a 55% top marginal rate will mean to you.
There’s a funny sounding phrase in the life insurance world that relates to a lethal tax trap called the “Goodman Triangle”. Sounds deadly doesn’t it?
Well, it actually refers to a court case Goodman v. Commissioner that dates back to 1946 believe it or not. And it is the “unholy trinity” of life insurance planning.
Estate planning is a subject that traditionally incites images of stuffy topics that require obtuse attorneys who spend all of their time fascinating over abysmal tax implications. While this assumption about the topic isn't unwarranted, it's a tad incomplete. Estate planning is a subject that will infiltrate everyone's life and how you choose to address it will make a dramatic difference in the lives of those who have to deal with your matters once you have passed away.
Today I'm not all that interested in detailing depth, as much as I'm interested in presenting a few key concepts that will hopefully adjust some thinking and make everyone realize that like it or not, all roads lead to estate planning.
So last time we dove into general design, and this time around we'll be addressing why this is such a great idea. I left off the last post with 8 reasons for using cash value life insurance as a spot to store emergency fund cash. If you forgot here they are:
- Increased rate of return
- Tax deferral
- Potentially tax free withdrawal
- Death benefit
- Private and non-probate asset
- Fewer fees (in most cases)
- Recaptured opportunity
- Systematic savings