so a estate planning guy at a network meeting sparked a curiosity in me.
He says beneficiary have to pay tax based on this scenario
any product 1MM face value, owner is DAUGHTER A insured is MOTHER, beneficiary is DAUGHTER A B & C
so the estate planning tells me if there isnt 3 owners on the policy, when the benefit is paid out to 1/3 1/3 1/3 the daughter A has to pay a gift tax for giving the 2/3 to her 2 sisters.
the reasoning behind this is because the owner should have 100% beneficiary because he/she is the owner vs the other 2 beneficiary.
so it is essentially, the daughter A giving a gift to daughter b and c.
right or wrong? half true? completely true? completely false?
pretty interesting stuff.
He says beneficiary have to pay tax based on this scenario
any product 1MM face value, owner is DAUGHTER A insured is MOTHER, beneficiary is DAUGHTER A B & C
so the estate planning tells me if there isnt 3 owners on the policy, when the benefit is paid out to 1/3 1/3 1/3 the daughter A has to pay a gift tax for giving the 2/3 to her 2 sisters.
the reasoning behind this is because the owner should have 100% beneficiary because he/she is the owner vs the other 2 beneficiary.
so it is essentially, the daughter A giving a gift to daughter b and c.
right or wrong? half true? completely true? completely false?
pretty interesting stuff.