Life Insurance

10 Reasons Young Adults Should Consider Estate Planning

10 Reasons Young Adults Should Consider Estate Planning

According to the law of averages, approximately 1 in 500 people in the United States who are aged 25-44 will die this year.  In other words, 499 out of every 500 in this group will be around in 2012. So why on earth do estate planning attorneys, financial planners, insurance salesmen, etc. recommend that anyone…

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Obama Signs New Tax Law: How It Affects You

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The House and Senate have passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, also known as the 2010 Tax Relief Act, and President Obama signed the bill today.  Let’s take a brief first look at how the new law will affect all of us.  Read more...

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Irrevocable Life Insurance Trusts: The Fundamentals

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As discussed in this post on common uses for trusts, an irrevocable trust is a separate entity you can create for many different purposes. The “Irrevocable Life Insurance Trust”, or ILIT, is one type of irrevocable trust that is set up to own life insurance on your life. With the ILIT, your family can ultimately…

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Ownership, Beneficiaries and Disclaimers in Estate Planning

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Today, we will again discuss how drafting wills and trusts are sometimes only part of the recommended strategy towards avoiding estate taxes.  Close inspection of your asset ownership, the naming of beneficiaries, and proper drafting of your estate documents are essential towards a complete estate plan. We discussed the mechanics of the A-B Trust plan…

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Estate Tax Effects on Cross-Owned Life Insurance

Today, Professor Beyer’s blog links to an article regarding the current status of the federal estate tax.  Unfortunately, many are left in a holding pattern while Congress decides whether or not to reinstate the tax before 2011.  If the tax is reinstated, it is unknown  if a decedent’s first $1 million, $3.5 million, $5 million,…

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Making a Will May Not Work

You have done your job.  You have saved in your retirement plan.  You have life insurance.  You own your house jointly with your spouse.  You have a “payable on death” clause in your bank account directing it to your kids.  Surprisingly, if your assets are set up this way, then your will may have very…

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Distrust as a Distraction to Planning (Part II)

Last week, we discussed how our skepticism for institutions and each other can deter us from moving forward with estate planning.  This was exemplified by a Washington Post story describing a life insurance company earning more in interest than they were paying out to a family suffering the loss of their military son in action. …

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Distrust as a Distraction to Planning (Part I)

While we seem to have ever-increasing access and insight over our government, corporations, professionals and even the press, the general level of mistrust in these institutions and the individuals that support them have also arguably arisen exponentially.  However, in terms of personal financial and estate planning, these widespread suspicions can be relegated to attractive, yet…

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