2006-12-13 23:03:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Insurance
In case you want to pay your estate taxes right now through your life insurance policies, you will have to get the surrender value calculated through the insurance company surrender/take loan on the policy and pay it .
In case you want to make provisions after you you will have to make a trust and appoint a trustee for it, limit their rights and then the insurance maturity/claim proceeds would be used in paying the taxes, and other things
thanks
2006-12-15 01:50:02 · answer #1 · answered by AVANISH JI 5 · 0⤊ 0⤋
What Deep said... and depending upon the size of the estate, you may consider an ILIT (irrevocable life insurance trust), which places life insurance into a trust. The amount is calculated to be large enough to pay 100% of the estate taxes. When the person dies, the life insurance is used to pay for the estate taxes without increasing the size of the estate.
I'd recommend that you consult an estate attorney - they'll have a better idea of what's needed. You may be able to get away with doing something like a credit shelter trust.
2006-12-14 12:06:12 · answer #2 · answered by cassee_ame 2 · 1⤊ 0⤋
If the estate is large enough to owe estate taxes, make sure the insured is not the owner of the policy. That just adds to the size of the estate. Have a designated owner and beneficiary, generally this is the executor, and they know they are responsible for the filing and paying of the taxes. When death occurs, they receive the funds and when the estate is settled, they have the money to settle it.
2006-12-14 00:30:52 · answer #3 · answered by deep5223 4 · 0⤊ 0⤋