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What Noncitizens Should Know About Transfer Taxes
Situation: According to a recent Forbes study a record 144 immigrant billionaires account for nearly 15% of all American billionaires and a quart of the country’s billionaire wealth.i Of these billionaires, 46 living in the U.S. hold non-citizen status. While we may not have billionaire clients, many financial advisors work with high net-worth individuals who […]
How to Remove a Life Insurance Policy from an Irrevocable Trust
Situation: Because the One Big Beautiful Bill Act (OBBA) preserves and modestly increases the estate tax exemption to $15 million, rather than having the planned decrease go into effect, some clients may believe they no longer need to keep life insurance in an irrevocable trust. As a result, I am often asked, “Can a life […]
Has Life Changed? It May Be Time to Update Beneficiary Designations
Situation: One of the most important decisions the owner of a life insurance policy makes is deciding who to name as the beneficiary. On the surface, a beneficiary designation may seem simple and straightforward, but they have the potential to be complex. Unfortunately, many people do not put much thought into the identification of a […]
Beneficiary Designations: A Small Detail with a Big Impact
Choosing a beneficiary is one of the most important decisions a life insurance policy owner can make. Because personal circumstances can change over time, beneficiary designations should be selected carefully and reviewed regularly.To help simplify the process and reduce the potential for delays, we have developed the following guidelines. While the examples provided are common […]
It’s Time to Reconsider Life Insurance During Retirement
The conventional wisdom among investment advisors is that if clients have planned appropriately, they will not need life insurance in retirement. It is commonly thought that upon reaching retirement, they will be free of debt, have plenty of assets on hand to replace lost income and leave to heirs as a legacy. This sounds like […]
What are the Tax Implications of Code Section 1035?
Situation: In another Counselor’s Corner article, we discuss how Section 1035 permits tax-free exchanges of life insurance policies. That article provided a detailed discussion of how to structure a life insurance exchange to qualify for Section 1035 tax treatment. In a nutshell, to qualify or tax-free exchange treatment under Section 1035 the transaction must be […]
