Thrifty Thinking: Estate Planning with Life Insurance

Whether as a wealth replacement strategy combined with philanthropic giving or as a safeguard to cover expenses and taxes, the use of life insurance in your estate plan can provide significant protection for loved ones. McManus & Associates, an estate planning law firm based in the Tri-State Area, issued the newest installment in its free Educational Focus Series. During a client conference call, titled “Top 10 Considerations for Estate Planning with Life Insurance,” the firm’s Founding Principal and top AV-rated Attorney John O. McManus discussed the many unique benefits of life insurance as a useful planning tactic that should be considered in every wealth transfer plan. To review the most important considerations when planning with life insurance, and get answers to these questions, visit the online article.

 

1. If a life insurance policy is owned by a trust, what is the ongoing maintenance required for the strategy to succeed most effectively? 

2. What are Cristofani beneficiaries and how can they make a life insurance trust even more gift tax efficient?  

3. How can insurance be utilized to facilitate a business succession plan?  

4. Term, whole life, 2nd to die – from a layman's standpoint, what are the unique benefits of each? 

5. How can ownership and beneficiary designations for a life insurance policy affect the taxable assets of the estate? 

6. How do non-citizens avoid qualified domestic trust requirements with a life insurance trust?

7. What are some strategies to avoid the three-year look-back period when existing insurance is transferred to a trust? 

8. Annual exemption gifts can fund a life insurance trust gift tax-free, but what about generation-skipping tax issues? How is the trust affected? 

9. When the terms of an irrevocable trust do not reflect the wishes of the parties, what options are available?

10. How can life insurance be used as a wealth replacement strategy with charitable giving?

 

About McManus & Associates

McManus & Associates, a trusts and estates law firm, was formed in 1991 by John O. McManus to provide the high quality experience of the largest firms coupled with the intimacy and efficiency of a specialized boutique firm. Over 20 years later, McManus & Associates continues to earn its reputation for integrity, intellectual ability, efficiency, and enduring relationships.