Life insurance proceeds from a qualified plan that are payable to the deceased participant’s executor (or estate) are includible in the deceased participant’s gross estate. [IRC §2042(1)] If the proceeds are payable to a beneficiary, they are included in the deceased participant’s gross estate only if the decedent possessed incidents of ownership in the policy …
Both estate tax and income tax results should be considered in planning qualified retirement plan benefits and IRAs. Both IRAs and qualified retirement plan benefits are includible in a plan participant’s or IRA owner’s gross estate; however, if those benefits are willed to the participant’s/owner’s spouse, the marital deduction will eliminate estate tax on such …
Bypass trusts can reduce estate taxes significantly in limited cases, for example if assets are expected to appreciate dramatically. They may be useful if there is a nontax reason for creating a trust, such as asset protection or to control spendthrift activity. But bypass trusts are generally not needed for estate planning purposes as a …
How does a bypass trust reduce the surviving spouse’s estate taxes? Read More »
An Inherited IRA Here are some things to consider when you receive IRA assets. Be sure you understand your options. When the owner of an IRA passes away, his or her heirs must be aware of the rules and regulations affecting Inherited IRAs. Ignorance can lead straight toward a tax disaster. Please note …
The Fine Art of Flexible Estate Planning Specialized trusts & private loans can help address some “what ifs.” Estate planning professionals often contend with ambiguities. A plan may need to be modified in the future when some development in family life occurs – and there are some estate planning tools that may help …
