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Posts tagged life insurance
Estate Tax Laws Have Changed for 2010 & 2011
Feb 15th
Minimize Taxes For Your Beneficiaries.
Many people feel they do not need a will because their taxable estate does not exceed the amount allowed to pass free of federal estate tax. These assumptions, however, should be reviewed given the current state of change in the federal estate tax laws. The federal estate tax laws in 2009, 2010 and 2011 are vastly different, for the moment and, therefore, it is important to have your will reviewed and updated as necessary this year.
Most wills were written with the existence of a federal estate tax. However, due to a loophole in the law, both the federal estate tax and the generation skipping transfer tax were repealed at the end of 2009, leaving 2010 without either of these taxes. There is still the gift tax, with the exemption of $1,000,000 during your lifetime, but the tax rate is reduced to 35% in 2010. (In 2009, this rate was 45% and 2011, it will increase to 55%. For both years, the gift tax exemption remains at $1,000,000.)
The federal estate and generation skipping transfer taxes, however, are both scheduled to return in 2011 at much less favorable rates than seen in the past 10 years. In 2011, the estate tax exemption amount will be $1,000,000 with a tax rate of 55% on the remaining estate. This compares to the 2009 exemption amount of $3,500,000 with a tax rate of 45%. Many professionals believe that Congress may retroactively reestablish the 2009 estate tax structure for 2010. This, however, remains to be seen.
Having your will reviewed during these changing times is important as the tax consequences have changed and unanticipated taxes could arise. (For instance, inherited assets subject to capital gain taxes.)
Further, your taxable estate may be larger than you think. For example, life insurance, qualified retirement plan benefits and IRAs typically pass outside of a will or of estate administration. But retirement plan benefits and IRAs (and sometimes life insurance) are still part of your federal estate and can cause your estate to go over the threshold amount. Also, in some states, the estate or inheritance tax differs from the federal laws. A properly prepared will is necessary to implement estate tax reduction strategies.
Tip: Changes in the estate tax laws and in the size of your estate may warrant a re-examination of your estate plan.
Precise Tax & Accounting, LLC
Contact me at (845) 649‑7487 for contact information for Precise Tax & Accounting,LLC
Life Insurance, an asset class for general public for your Portfolio.
Dec 16th
Watch this CNBC interview about how Life Insurance is a safe asset that should be considered for your portfolio. You can be sure of a beyond decent return.
It is now an asset class for the general public. It has always been for banks, corporations and college endowments.
6 reasons to add life insurance as one of your assets, according to the CNBC interview.
1. High Rates of Return.
2. Mortality is recession proof.
3.Tax Free Gains.
4. Not correlated to stock market
5. Can be used for Charity.
6. Safe bet long term investment with high interest rates, virtually no volatility and it has a lot of liquidity during your lifetime.
Whole Life Insurance is not bad if you understand how it works.
Why I offer Dividend Paying Mutual Whole Life and NOT Universal Life or Equity Indexed Universal Life for the best ‘living benefit’ asset?
1. UL & EIUL have too many moving parts and they are tied to fluctuating market index.
2. They have not been around long. Whole Life has been around for over 150 years.
3. Top 3 largest insurance companies do not offer UL or EIUL because they are too risky. Banks shift risk away from themselves, so do what banks do.
4. Again, Do what banks do – one of their base reserves or tier one assets is cash value mutual life insurance policies, because they are safe and secure.
5. Most importantly – UL & EIUL do not offer paid-up additions which are what drives the best choice insurance policy’s growth. The best choice is the one and only one I offer because nothing can beat it. If you borrow $25,000 from a UL policy and then pay yourself back, you get no additional PUA, insurance which is paid up for life with a one time premium.
6. C.O.I. Cost of insurance. With UL the cost starts low but gets more expensive as you age which becomes a drag on the cash value over time.
7. Dividends are based and paid on the Face Amount, not the Cash Value amount.
The insurance policy I offer has three major unique advantages you will not find anywhere else.
1. How do you make the most of your policy as your own banking system? We have a unique education system. 20 cd’s and 365 page book that teaches you how to use your life insurance policy like your own bank. This is optional and is not needed to use the policy.
2. No one else has the proprietary blend that creates 70% cash value from day one of your policy. This is such a huge advantage. Regular policies offer zero cash value for 2 years and a few hundred in years 3 or 4.
3. No one has the capability of merging this specific policy with the award winning software system for financial guidance and tracking with lifetime, live help from the company except us.
Call me today to get your free of charge illustration. At least take a look before forming an opinion based on hearsay, spam or your past experience. (845) 649‑7487.
