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Exclusive Insurance and Benefit Plans for Business and Education |
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Financial Planning
Estate Planning and Wealth Accumulation | Online Insurance Gifting Programs
Current tax law allows you to give away $10,000 per year per recipient. Your spouse may join in the gift even if he or she is not an owner in the transferred asset. This means that you could transfer up to $20,000 per year to each of your heirs. To double the annual exclusion yet again, you may want to include spouses of your children. The person receiving the gift does not need to be related to you. These annual gifts do not reduce your once-in-a-lifetime exclusion
Many people arrange for life insurance to be purchased with money that is gifted to their heirs in order to leverage their gift. An annual gift of $10,000 converted to life insurance might purchase over a million dollars worth of second to die life insurance for a husband and wife 60 years of age. Many wealthy clients can take their $1.3 million and the entire amount in a life insurance program that is in an Irrevocable Life Insurance Trust (ILIT). Depending on the age and health of the insureds, they might be able to buy a death benefit over 10 times greater than the premium paid. This would be an excellent example of the substantial leverage that can be achieved through life insurance. (For a complete list of policies please contact us.)
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