Compulife doesn't show table rating adjustments, but that's only a 6% increase for a table 2 rate? Something missing there.....and how can $5.3M be gifted into a trust to pay the premium without incurring a massive tax liability above the gift exclusion?
$1,000,000 SPWL for 80 Y.o. Female
- Thread starter padthaiforlunch
- Start date
Compulife doesn't show table rating adjustments, but that's only a 6% increase for a table 2 rate? Something missing there.....and how can $5.3M be gifted into a trust to pay the premium without incurring a massive tax liability above the gift exclusion?
- 1,802
Go take it up with North American; or better yet have them run you an illustration.........LOL
I find it humorous that you are trying to argue with data that you have already said is in-conclusive.
What this particular client did is that he "gifted" $12,000 to 449 of his relatives, and they in return purchased his life policy. Pretty smart move!
In all seriousness this is not the case. There were several tax-attorney's that already put this plan together. they requested several quotes from agents around town, and I, according to them, was the most knowledgeable.
The client in question is a very wealthy individual; who owns several banks, in several different states. It was "his" trust department that came up with this plan
In this particular case I was the order taker, and more than happy to accommodate.
Do you know how they structured it? I'd be curious if there was some way to get around that....we have a client in a similar situation. Not nearly as old, but the premium would be massive and he's potentially looking at a lump sum payment instead of paying annually, but there would be a huge gift tax if he did it that way.
- 1,802
I will have to get back to you on that. I am positive that they set up inside an ILIT.
I am also positive that they set it up so that the premiums were paid by the bank; as some type of executive compensation. (The premium check was issued by his bank)
I will be taking my last semester of law school come August; and the one class I am looking forward to the most is Tax and Estate preservation. I will let you know how it goes.
- Thread starter
- #35
- 1,641
Thank you. While this forum has the feel of a locker room at times, nobody here is 15 (I think).
Bank issued check... hmmm. Premium financing...
Could easily have been part of the program. What better way to have it, controlling the bank, the Attorney's and large assets. I think it is called estate planning Chess.
Safemoney4u
New Member
- 6
We handle all of the above cos. I'm with one post from earlier. Is this case underwritable?
Problem with SPUL is obviously age and the net amount at risk for most insurers.
Gary
