Estates larger than $650,000 (in 1999) may face some potential tax consequences. This applicable exclusion amount, as it’s called, is set to increase over the next several years.The first $650,000 can go to your beneficiaries tax-free, but your heirs (excluding your spouse) have to pay income taxes on anything over that amount. If you have a large estate, you may want to ensure that more of your estate goes into your beneficiary’s hands, rather than to the government.
Minor children as beneficiaries
You may not want to choose your children as your beneficiaries if they are still minors. Under the current law, children under the age of 18 can’t collect insurance benefits directly, even if they’re the rightful heirs. If you die and your children are the beneficiaries, the proceeds can only go to them in a trust fund, which an adult must manage. If you don’t select this adult (perhaps a lawyer or an accountant, or an organization such as a bank), the probate court selects someone or some organization to oversee the money. When your children reach the age of maturity, usually 18 years old, the funds automatically go to them.
Before that time, the trust fund administrator controls how the funds are invested and spent.
Before that time, the trust fund administrator controls how the funds are invested and spent.
Deciding your beneficiaries
When you purchase a life insurance policy, one of the first things you must do is decide who will be the recipient of the benefits — hence the term beneficiaries. Most people designate their spouse as the primary beneficiary, which means that the spouse gets the entire death benefit when the policyholder dies. If you’re single, your primary beneficiary is likely to be your children, if you have any.
However, your circumstances may give you reason to name more than one beneficiary, especially if your estate is sizable. Naming additional beneficiaries is extremely important in the event that the primary beneficiary dies at the same time you do or that person dies before you.
However, your circumstances may give you reason to name more than one beneficiary, especially if your estate is sizable. Naming additional beneficiaries is extremely important in the event that the primary beneficiary dies at the same time you do or that person dies before you.
Coinsurance Hole In Coverage
I've just started the review of a new client's coverage. There, on the first page was a glaring error - a coinsurance penalty. It may be the most common problem I see - aside from named insured issues...
Coinsurance is a penalty assessed at the time of a loss. It is the way insurers assure that insureds buy adequate limits of coverage.
The penalty takes away coverage by limiting a loss payout. For almost 30 years insurers have been removing the penalty by the use of the "agreed amount endorsement." It is exceedingly rare for insurers to refuse to eliminate the penalty. The only time I see it is when the insurer thinks that the amount of insurance is inadequate. The insured then negotiates with the insurer and the problem is solved.
A coinsurance clause on building or on personal property tells me an agent is not aggressive enough - either with the insurance company or with their client.
Coinsurance can also be eliminated on loss of business income protection. Same deal. Get the insurance company to agree that the coverage amount is correct and they can remove the penalty.
Some property insurance policies hide coinsurance. Its quite common on inland marine (equipment) coverage and computer hardware coverage sections. Removing the penalty in these two areas is more difficult, though not impossible. Sometimes it just takes the agent asking a few questions.
Coinsurance is a penalty assessed at the time of a loss. It is the way insurers assure that insureds buy adequate limits of coverage.
The penalty takes away coverage by limiting a loss payout. For almost 30 years insurers have been removing the penalty by the use of the "agreed amount endorsement." It is exceedingly rare for insurers to refuse to eliminate the penalty. The only time I see it is when the insurer thinks that the amount of insurance is inadequate. The insured then negotiates with the insurer and the problem is solved.
A coinsurance clause on building or on personal property tells me an agent is not aggressive enough - either with the insurance company or with their client.
Coinsurance can also be eliminated on loss of business income protection. Same deal. Get the insurance company to agree that the coverage amount is correct and they can remove the penalty.
Some property insurance policies hide coinsurance. Its quite common on inland marine (equipment) coverage and computer hardware coverage sections. Removing the penalty in these two areas is more difficult, though not impossible. Sometimes it just takes the agent asking a few questions.
Workers' Compensation Insurance Book
My new workers' compensation book is all set for publication. The proof copy was delivered today and the printer is ready to take orders. Until January 15 it is available for $25.00.
Filled with 200 pages of hints and information that will help work compensation buyers control their costs and losses.
More info at http://www.insurance-coveragelaw.com/SR3WC.html.
Filled with 200 pages of hints and information that will help work compensation buyers control their costs and losses.
More info at http://www.insurance-coveragelaw.com/SR3WC.html.
Plagiarists Run Rampant
Recently several people on a web-forum I frequent started talking about plagiarism and the discovery that articles they had posted had been copied. In some cases, whole websites had been stolen. This group, Alan's Forum, run by consulting guru Alan Weiss, includes some of the top consultants in the world.
I decided to run my own test. I picked 5 of the hundreds of articles and postings I have on line. Every one of them showed up without attribution on someone else's website. Angry cannot begin to describe my reaction. My hard work and intellectual property has been stolen. I'm contacting the offenders, several of whom have apologized while blaming the error on their web-developer.
For anyone unsure, plagiarism is theft. You cannot copy someone's work and call it your own. You cannot use someone's work without credit. Link to my pages – great. Quote me – fine. Use a paragraph from a posting of mine and attribute it to me – thank you for spreading the word. However, steal my work and I will hunt you down.
What can be done? Well, first I am adding stronger fair-use policies on my sites – just so it's clear what is right and wrong. I am also using a service to track the use of my stuff. Those that use my material without attribution who are members of associations or accreditation agencies will be reported to their ethics boards. Those who serve on the faculty of colleges and universities will be reported to the administration of the institutions. I will report copyright infringements to web hosting companies and ISPs. I will do everything I can to stop my intellectual property from being stolen.
I teach at a local community college. All instructors are required to provide students with a statement on plagiarism. I told my class that if I caught them cheating on a test or plagiarizing work that I would fail them and make it my life's mission to have them expelled. Stealing and cheating is wrong. The penalties for dishonesty should be severe. Our colleagues, clients, and the world must know that our standards are high.
I decided to run my own test. I picked 5 of the hundreds of articles and postings I have on line. Every one of them showed up without attribution on someone else's website. Angry cannot begin to describe my reaction. My hard work and intellectual property has been stolen. I'm contacting the offenders, several of whom have apologized while blaming the error on their web-developer.
For anyone unsure, plagiarism is theft. You cannot copy someone's work and call it your own. You cannot use someone's work without credit. Link to my pages – great. Quote me – fine. Use a paragraph from a posting of mine and attribute it to me – thank you for spreading the word. However, steal my work and I will hunt you down.
What can be done? Well, first I am adding stronger fair-use policies on my sites – just so it's clear what is right and wrong. I am also using a service to track the use of my stuff. Those that use my material without attribution who are members of associations or accreditation agencies will be reported to their ethics boards. Those who serve on the faculty of colleges and universities will be reported to the administration of the institutions. I will report copyright infringements to web hosting companies and ISPs. I will do everything I can to stop my intellectual property from being stolen.
I teach at a local community college. All instructors are required to provide students with a statement on plagiarism. I told my class that if I caught them cheating on a test or plagiarizing work that I would fail them and make it my life's mission to have them expelled. Stealing and cheating is wrong. The penalties for dishonesty should be severe. Our colleagues, clients, and the world must know that our standards are high.
Life Insurance in Estate planning
Although income protection for their survivors is clearly the main reason that most people buy life insurance, estate planning is a close second. The goal of estate planning is to ensure not only the smooth distribution of your wealth to your heirs, but also that the government doesn’t take too big a bite. And the wealthier you are, the bigger the tax bite. This chapter looks at the role that life insurance plays in planning for your retirement, including dividends, annuities, and tax consequences.
This section also focuses on how life insurance can help ensure a seamless transfer of your estate to your heirs.
This section also focuses on how life insurance can help ensure a seamless transfer of your estate to your heirs.
Understanding the Life Insurance Premium
The age at which you buy life insurance relates directly to the cost of your premium (the amount you must pay for the coverage). The younger you are, the cheaper the premium. A 38- year-old male buying a five-year, term life insurance policy with a death benefit of $100,000 may pay only about $175 per year, while a 48-year-old may have to pay about twice that amount for the same coverage.
If, however, that 38-year-male old wants to buy a cash-value life insurance policy — one that not only provides a death benefit when he dies but also builds some value that he can use when he retires (or that adds to the death benefit) — he may have to pay about $600 a year, about three-quarters of which goes into his cash-value account. When determining how much life insurance you need, you have to take into account how much life insurance you can afford. The cost of insurance goes up every year as you age because your life expectancy is lower and the insurance company knows it has fewer years before you are expected to die. Decide how much you can afford to pay per year and work with that amount to determine how much life insurance to buy.
One way to estimate how much your premiums will be in five or ten years is to find out what the premium would be now if you were five or ten years older. Doing so gives you the price in today’s dollars. You can add about 15 to 20 percent more for five years and about 40 to 50 percent more for ten years to account for inflation.
If, however, that 38-year-male old wants to buy a cash-value life insurance policy — one that not only provides a death benefit when he dies but also builds some value that he can use when he retires (or that adds to the death benefit) — he may have to pay about $600 a year, about three-quarters of which goes into his cash-value account. When determining how much life insurance you need, you have to take into account how much life insurance you can afford. The cost of insurance goes up every year as you age because your life expectancy is lower and the insurance company knows it has fewer years before you are expected to die. Decide how much you can afford to pay per year and work with that amount to determine how much life insurance to buy.
One way to estimate how much your premiums will be in five or ten years is to find out what the premium would be now if you were five or ten years older. Doing so gives you the price in today’s dollars. You can add about 15 to 20 percent more for five years and about 40 to 50 percent more for ten years to account for inflation.
NonOwned Auto Liability Insurance
It isn
Your Life Expectancy and Life Insurance
The amount of insurance you purchase depends very much on your life circumstances, what your style of living is, how much your survivors need, and what lies ahead for your beneficiaries.If you are 30 years old and in good health, the chances are great that you will live another 50 years or more. As medical advancements continue, your life span may be even greater, assuming that you’re not hit by that proverbial truck.
Your life span affects your life insurance needs in these ways:
- The younger you are, the longer your survivors are going to need income replacement, the more dollars you need to put away for future expenses such as your children’s education, and the more likely it is that your living expenses are lower.
- The older you are, the less chance your spouse has to plan for his or her retirement, the less likely it is that your survivors will have to depend on you to fund a college education, and the more likely your spouse is to need medical, skilled-care assistance, or nursing home care.
Your Risk Analysis and Mitigation Calendar
For some time I have been considering the idea of a calendar of risk mitigation actions businesses should follow. The table below outlines a schedule of activities based on a "risk management year" based on the expiration date of the organization's insurance policies.
Month 1
-Your insurance renews
-Review binders
-Review auto id cards
-Review list of needed certificates
Month 2
-Review renewal policies for accuracy when delivered by agent
-Inspection looking for hazards, equipment, and safety issues
Month 3
-Test computer backup system
-Update contact info sheets - employees, customers, suppliers
Month 4
-Review / update disaster plan
-Inspection looking for hazards, equipment, and safety issues
Month 5
-Review open w/c losses - reserves adjusted for experience mod calculation
-Meet with agent - review coverage, losses, and future plans
Month 6
-Test computer backup system
-Review loses for trends and problems
-Inspection looking for hazards, equipment, and safety issues
-Update contact info sheets - employees, customers, suppliers
Month 7
-Review and update employment forms, procedures, and handbooks
-Audit files of new hires - handbook documentation? -Computer/ergonomic, harassment, and other training documentation?
Month 8
-Meet with agent to strategize renewal
-Decide whether a bid process is needed
-Inspection looking for hazards, equipment, and safety issues
-Risk Identification - Review a comprehensive listing of risk exposures to identify areas of need.
Month 9
-Review experience mod calculation from NCCI
-Test computer backup system
-If bidding, meet and select competing agents - provide info
Update contact info sheets - employees, customers, suppliers
Month 10
-Review / update disaster plan
-If not bidding renewal, review coverage limits with agent
-Manager training on employment law issues
-Walk through inspection looking for hazards, equipment, and safety issues
Month 11
-If bidding, obtain feedback from participating agents
-Review safety policies and audit compliance
-Review vendor relationships - their viability, sustainability, replacement relationships
Month 12
-If bidding, analyze bids
-Decide on renewal policy - agent, insurer, limits, and coverages
-Determine payment plan that best meets your cash-flow needs
-Test computer backup system
-Walk through inspection looking for hazards, equipment, and safety issues
-Update contact info sheets - employees, customers, suppliers
The key to exceptional performance is a system of "best practices." The above provides a framework for actions to manage risk in your operation. Who oversees this process for you?
Calculating future expenses of your survivor
When calculating the needs of your survivors, building in expenses that you know will occur is extremely important. These expenses are usually the largest factors in determining how much insurance to buy. One of the most obvious of these planned future expenses is the cost of attending college. Build in a cost of about $80,000 to $100,000 per child in today’s dollars. Of course, the actual amount your child needs will probably be considerably more later on, which is taken into account with the inflation factor
The amount of life insurance you buy now is the amount your survivors need if you die soon. If you’re worried about inflation eating into the death benefit, you can buy an insurance policy in which the death benefit increases in value. You can read more about these kinds of policies
You may be aware of other expenses that your family will incur, such as orthodontia, summer camps, special classes for your children, or special medical needs. You should build these expenses into the worksheets. Additionally, you can count on at least one or two of those
unexpected expenditures that come up, including a new roof for the house, a new car, and medical emergencies for which your health insurance doesn’t pay the entire cost. When you complete the budget worksheet, build in some “fudge factor” — about 10 percent of your annual income is good — to account for these unplanned costs.
The amount of life insurance you buy now is the amount your survivors need if you die soon. If you’re worried about inflation eating into the death benefit, you can buy an insurance policy in which the death benefit increases in value. You can read more about these kinds of policiesYou may be aware of other expenses that your family will incur, such as orthodontia, summer camps, special classes for your children, or special medical needs. You should build these expenses into the worksheets. Additionally, you can count on at least one or two of those
unexpected expenditures that come up, including a new roof for the house, a new car, and medical emergencies for which your health insurance doesn’t pay the entire cost. When you complete the budget worksheet, build in some “fudge factor” — about 10 percent of your annual income is good — to account for these unplanned costs.
The cost of dying
The cost of dying refers to the expenses of funerals, burials, and the disposal of your body. How much you pay for these expenses is more than likely up to your survivors. The cost of funerals varies enormously. But on average, burials cost between $5,000 and $10,000. Cremations cost considerably less, from $2,000 to $5,000. When determining the amount of life insurance to purchase, consider including an amount in the death benefit that can cover the cost of the funeral.
Talk with your spouse, if you have one, or to your parents if they are your survivors, or your children if they are old enough, about funeral expenses. This conversation may not be easy, but be persistent so that they can honor your wishes (and make theirs known) should you die. Many funeral homes won’t require payment directly from your survivors but will allow and will help you arrange to be paid directly from the life insurance proceeds.
Talk with your spouse, if you have one, or to your parents if they are your survivors, or your children if they are old enough, about funeral expenses. This conversation may not be easy, but be persistent so that they can honor your wishes (and make theirs known) should you die. Many funeral homes won’t require payment directly from your survivors but will allow and will help you arrange to be paid directly from the life insurance proceeds.
What is Probate?
Probate is the process by which your estate is accounted for, all debts and taxes are paid, and whatever is left over goes to the rightful heirs. At this point, your will is officially registered and the executor of your estate is given the legal right to dispose of your assets.
Many executors choose to get assistance from an attorney to handle the financial affairs (although doing so isn’t required). Depending on the size of the estate, an attorney may charge $2,000 to $3,000 to handle probate. You may want to increase your life insurance death benefit by that amount to take care of the probate expenses. Dealing with estates and probate can sometimes get fairly complicated. Speak to an attorney before handling them yourself.
Many executors choose to get assistance from an attorney to handle the financial affairs (although doing so isn’t required). Depending on the size of the estate, an attorney may charge $2,000 to $3,000 to handle probate. You may want to increase your life insurance death benefit by that amount to take care of the probate expenses. Dealing with estates and probate can sometimes get fairly complicated. Speak to an attorney before handling them yourself.
Examine your estate taxes
Depending on the size of your estate, the heirs may have to paying taxes on the sum they will inherit. If your entire estate go to your spouse, he or she faces no tax consequence, regardless of the size of the estate.
If, however, your estate goes to other beneficiaries and your area is more important than the amount allowed under tax law your heirs will have to pay taxes on those balances amounts. Although the figure of 1999 of $ 650,000 may seem quite large you, a lot of people who own homes have increased in value as equity in their home is above the limit permitted by federal law, the inheritance tax. In these types of the situations, the heirs may have to pay a substantial sum to tax.
Most likely, they will not have the cash or other liquid assets to pay estate taxes, especially if the inheritance is in a shape they can not easily converted into cash. In this case, they can either sell the property or pay the inheritance tax others
You can help your heirs pay inheritance taxes by purchasing a higher amount of life insurance (and therefore an increase in death provision). Be sure to include an amount to cover the mass tax when you complete the worksheet to determine the the amount of coverage you need.
If, however, your estate goes to other beneficiaries and your area is more important than the amount allowed under tax law your heirs will have to pay taxes on those balances amounts. Although the figure of 1999 of $ 650,000 may seem quite large you, a lot of people who own homes have increased in value as equity in their home is above the limit permitted by federal law, the inheritance tax. In these types of the situations, the heirs may have to pay a substantial sum to tax.
Most likely, they will not have the cash or other liquid assets to pay estate taxes, especially if the inheritance is in a shape they can not easily converted into cash. In this case, they can either sell the property or pay the inheritance tax others
You can help your heirs pay inheritance taxes by purchasing a higher amount of life insurance (and therefore an increase in death provision). Be sure to include an amount to cover the mass tax when you complete the worksheet to determine the the amount of coverage you need.
Examine your uninsured medical cost
Uninsured medical costs are one of the largest potentials expense on a family budget. Medical expense in your family budget is crucial because health insurance terms, profits and regulations change very quickly. In addition, medical protection is directly linked to your family health, by definition, you want to be sure that your survivors can pay for your medical expenses if you die. So after completion of the budget sheet, add a lump sum to the for paying unexpected and uninsured medical costs.
How much to add? Good question! The figure that you decide vary depending on the type of health insurance you now have. If you belong to an HMO, most of your medical expenses are covered. But if you have a private plan to pay 20 percent of costs, then your portion is likely to be much larger. Only you can really estimate this amount. However, most experts say that you should always keep about three months worth of living expenses available, try adding this amount down from the sheet of your emergency fund to cover those uninsured medical expenses.
How much to add? Good question! The figure that you decide vary depending on the type of health insurance you now have. If you belong to an HMO, most of your medical expenses are covered. But if you have a private plan to pay 20 percent of costs, then your portion is likely to be much larger. Only you can really estimate this amount. However, most experts say that you should always keep about three months worth of living expenses available, try adding this amount down from the sheet of your emergency fund to cover those uninsured medical expenses.
Examine your living cost
The economic value of your life is not just how much you revenues you earn, but also your living cost, that is how much money you need to live comfortably. The cost in life of you and your family is actually the amount of life insurance income protection that you to purchase. Furthermore, most people tend to spend a little more their revenue, this is the reason why living cost must be carefully examined before purchasing the life insurance.
In addition, a portion of your cost of living are more than likely go into some form of savings, which is to pay college expenses when your children are old enough, for your retirement, to finance your a big vacation, and so forth. You want to ensure that your survivors would be able to cover essential expenses (college expenses, for example). But clearly, saving for your retirement really not something that you have to feel concerned if you die.
When calculating your living cost, do note the rate of inflation and additional expenses that may appear. Living cost may also include debt that must be paid monthly, so make sure that your life insurance amount also able to cover monthly debt payment for your survivor, if you die in a productive age. This way, your survivors do not have to put extra expenses to pay for family debt.
In addition, a portion of your cost of living are more than likely go into some form of savings, which is to pay college expenses when your children are old enough, for your retirement, to finance your a big vacation, and so forth. You want to ensure that your survivors would be able to cover essential expenses (college expenses, for example). But clearly, saving for your retirement really not something that you have to feel concerned if you die.
When calculating your living cost, do note the rate of inflation and additional expenses that may appear. Living cost may also include debt that must be paid monthly, so make sure that your life insurance amount also able to cover monthly debt payment for your survivor, if you die in a productive age. This way, your survivors do not have to put extra expenses to pay for family debt.
Examine your income before taking life insurance
The value of your income is relatively easy to calculate: It’s the amount of money you earn, plus the amount of money you’d expect to earn if you hadn’t died prematurely. But this figure can be difficult to determine accurately. For one thing, many people have little idea of what they may be earning five years from now, especially younger people who may not have settled into a career yet. Secondly, more and more people change careers (not just jobs, but careers) numerous times in their lives. The average number of careers (again, not jobs) for people is now over five! How can anyone possibly say what his or her income will be in 15 years?
Your best bet when figuring the value of your income is to estimate how much your annual salary is likely to increase each year. When completing the worksheet in this chapter, use an increase of about 5 percent per year.
If you know your salary increases will be more than 5 percent per year, use the higher figure. If you know your increases will be less than 5 percent, use the lower number. You can round off later in the final formula when you determine how much life insurance you need.
Don’t forget that in five or ten years, you may quite possibly be working for a different organization or in a different job. If you underestimate your increases, you’re also underestimating the amount of income protection that your survivors need.
Your best bet when figuring the value of your income is to estimate how much your annual salary is likely to increase each year. When completing the worksheet in this chapter, use an increase of about 5 percent per year.
If you know your salary increases will be more than 5 percent per year, use the higher figure. If you know your increases will be less than 5 percent, use the lower number. You can round off later in the final formula when you determine how much life insurance you need.
Don’t forget that in five or ten years, you may quite possibly be working for a different organization or in a different job. If you underestimate your increases, you’re also underestimating the amount of income protection that your survivors need.
Testimonial!
"We were faced with a monumental insurance decision after being with the same company for over fifteen years. A choice needed to be made to stay with our traditional insurance company or join a captive. Scott provided his professional expertise to conduct a gap analysis on the two programs. The final report was clear, concise, comprehensive and easy to follow. Scott's efforts clearly helped us through this difficult process."
Brian Boudreau
Eastern Propane
Brian Boudreau
Eastern Propane
Life insurance as part of your estate planning
Apart from the fact that it may serve as a tax shelter for you and your families, life insurance can also be a good framework for the programming assets, and specifically deals with how to distribute your assets after you die, which will greatly benefit your children.
Currently, the federal tax law provides that the first $ 700000 in inheritance exempt from the federal tax. Most members allow similar amount and some have no inheritance tax. Realistically, most people need not worry much about taxes and the reduction of property assets. Moreover, most couples own their property and the property to the public, so that the surviving spouse or the owners do not have to pay inheritance taxes, even if the property is greater than the amount allowed under the law.
But if you are on the estate and is worth more than the law allows, we can ensure that the assets go to your survivors and not the government? This is the point at which life insurance and life insurance come into trusts
To do this type of estate planning, consult an expert who can both advise and implement appropriate vehicles. Briefly, here's how it works:
1. You have created an irrevocable life insurance trust, which contribute annually. Confidence is, essentially, a life insurance policy, which goes from your children or survivors taxfree. You can not withdraw money for any reason (hence the term irrevocable).
2. Your spouse and your children give each regardless of the law that allows the moment, so that the money is taxfree.
3. You will have the amount due to a special organization of your choice, which, by definition, be exempt from inheritance taxes. If you do not have the outstanding amount to a charitable organization, is considered part of your estate and your heirs will have to pay their taxes.
In this case, the IRS took this picture. Using a part of your domain, you can buy a tax-free life insurance policy so that your heirs get the same amount would first of all inheritance tax - the amount equivalent to the estate. Plus, you can devote a large part of your property to a charity rather than the government. The only party that loses is the IRS (and another party wins, the life insurance company, which charges a significant amount of that policy over a period of several years). , But nothing lose your heirs! It is not that the purpose of estate planning?
Do not try to run the complicated process for yourself. A qualified professional can help you sort through the small details and prevent you from making a costly mistake.
Currently, the federal tax law provides that the first $ 700000 in inheritance exempt from the federal tax. Most members allow similar amount and some have no inheritance tax. Realistically, most people need not worry much about taxes and the reduction of property assets. Moreover, most couples own their property and the property to the public, so that the surviving spouse or the owners do not have to pay inheritance taxes, even if the property is greater than the amount allowed under the law.
But if you are on the estate and is worth more than the law allows, we can ensure that the assets go to your survivors and not the government? This is the point at which life insurance and life insurance come into trusts
To do this type of estate planning, consult an expert who can both advise and implement appropriate vehicles. Briefly, here's how it works:
1. You have created an irrevocable life insurance trust, which contribute annually. Confidence is, essentially, a life insurance policy, which goes from your children or survivors taxfree. You can not withdraw money for any reason (hence the term irrevocable).
2. Your spouse and your children give each regardless of the law that allows the moment, so that the money is taxfree.
3. You will have the amount due to a special organization of your choice, which, by definition, be exempt from inheritance taxes. If you do not have the outstanding amount to a charitable organization, is considered part of your estate and your heirs will have to pay their taxes.
In this case, the IRS took this picture. Using a part of your domain, you can buy a tax-free life insurance policy so that your heirs get the same amount would first of all inheritance tax - the amount equivalent to the estate. Plus, you can devote a large part of your property to a charity rather than the government. The only party that loses is the IRS (and another party wins, the life insurance company, which charges a significant amount of that policy over a period of several years). , But nothing lose your heirs! It is not that the purpose of estate planning?
Do not try to run the complicated process for yourself. A qualified professional can help you sort through the small details and prevent you from making a costly mistake.
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