Estate Planning with Life Insurance Question

JAG82

Expert
41
During my cold calling session today I came across a man who is acting president of a decent sized buisness that manages property(restuarants/strip malls). I was cold calling about medicare health insurance and we spent around 15-20min on the phone talking health insurance and his job. I could not find a smooth transition into talking to him about estate planning with the old Bush tax breaks being expired. If I am not correct please tell me, it is now 1 million dollars and above in a persons estate that is taxable upon death and that estate tax could be as high as 55%.

My question is this...I am putting together a very professional packet about the facts of estate taxes and some vague methods of helping reduce that taxable amount. THE SELLER is I am looking to place a decent sized life insurance policy with this person to help take care of estate taxes. Does anyone have any good materials on these subjects that i can include in my packet I want to get to him??????

(yes I have a local estate planning lawyer/CPA/FA I already use but open to suggestions) MICHIGAN! GO MSU SPARTANS!!:1biggrin:
 
pretty cut and dry....set up a irrevocable insurance trust.....then write the life with the trust as the benie.......
 
During my cold calling session today I came across a man who is acting president of a decent sized buisness that manages property(restuarants/strip malls). I was cold calling about medicare health insurance and we spent around 15-20min on the phone talking health insurance and his job. I could not find a smooth transition into talking to him about estate planning with the old Bush tax breaks being expired. If I am not correct please tell me, it is now 1 million dollars and above in a persons estate that is taxable upon death and that estate tax could be as high as 55%.

My question is this...I am putting together a very professional packet about the facts of estate taxes and some vague methods of helping reduce that taxable amount. THE SELLER is I am looking to place a decent sized life insurance policy with this person to help take care of estate taxes. Does anyone have any good materials on these subjects that i can include in my packet I want to get to him??????

(yes I have a local estate planning lawyer/CPA/FA I already use but open to suggestions) MICHIGAN! GO MSU SPARTANS!!:1biggrin:

The current federal exemption for 2013 is 5.25 million and is indexed for inflation...if he's married the exemption is typically portable, meaning that they would have a 10.5 million dollar exemption.

The highest federal rate is 40%.

I don't do any business in MI so maybe he'll have a state tax issue to keep the opportunity open? Someone else may be able to answer that question.

By the way, this doesn't mean there isn't an insurance sale here or that estate planning is unnecessary, just that the federal estate tax issue may be a non-event.
 
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