Single Premium Whole Life/GUL for 86 year old

[Allen Trent]

There could be an inheritance tax if it is not in a life policy. Depends on the state.

I don't believe that is true, but would like to learn if it is.

what state counts all your assets & investments, but ignores you life insurance owned by you? Most calculations for federal or state estate taxes count every asset from cash, securities, land, retirement, personal belongings & the death benefit of term/permanent plans in the valuation of your estate.

Also, the OP was talking income taxes because he was stating the beneficiaries are in higher tax brackets. Estate taxes are not impacted by the beneficiaries income tax brackets as estate taxes are paid by the decedent, not the beneficiary of the accounts

 

[paulallred]

Listen "Slick" it does and you are sounding more ridiculous with every post.
You have no idea where his money is, you're telling a 25 year CPA and myself of 35 years
with ZERO client complaints that we're wrong.
You're a rookie or at least act like one by making wrongful and unsubstantiated statements.
Your opinion is not and never was asked for, particularly after experiencing your naive approach.

 

[paulallred]

Exactly Todd

 

[Allen Trent]

Listen "Slick" it does and you are sounding more ridiculous with every post.
You have no idea where his money is, you're telling a 25 year CPA and myself of 35 years
with ZERO client complaints that we're wrong.
You're a rookie or at least act like one by making wrongful and unsubstantiated statements.
Your opinion is not and never was asked for, particularly after experiencing your naive approach.

OK---I am sorry. I was just trying to be helpful. I didn't mean to upset you nor did I mean to point to how taxes & laws work on products to ruin your sale. I was merely trying to assist with providing you factual information to avoid any problems.

I am confident in the information I provided you & I believe if you obtain a 2nd opinion regarding how various assets are taxed, you will indeed find the information to be 100% factual.

Again, sorry to have offended, my bad. was just trying to help as I have seen the clients in some of these cases discover when they file their tax return & annually get their Medicare income validation be shocked at a large tax bill & higher Medicare premiums if a current taxable asset is cashed in to get into a tax free.

I am always willing to learn & that is what I like about this forum. So, please help correct my misunderstanding of how something can be income taxed to beneficiaries as is, but wont be taxed to them in SPWL by not 1st settling up with the IRS to get the money into the SPWL. I would like to apply that strategy if I am missing out on it.

next time, please just avoid the name calling. I don't think it was warranted in this situation as I was never attacking you & I am sorry if it came off that way

 

[fed up]

I don't see any value in placing the money in a SPWL policy due to age. The premium on each $50,000 of policy value would likely be in the 11,000/year range. In 5 years the premium has exceeded the benefit. I think I would look more to a deferred annuity where the first or first 2 years has a % bump and you would get a larger return, not have to put an 86 yo through paramed, and have the annuity pay the beneficiaries upon death. Certainly ties up the money but the end result, if age works to get through to annuitization, would be better for all involved

 

[paulallred]

You attacked me by saying I was wrong and that what was being done was bad for the client.
It's great for the client the cash surrender value is only $1 less than his deposit and grows every year along with his tax-free death benefit growing as well.
No more responses will be read nor responded to.

 

[Allen Trent]

You attacked me by saying I was wrong and that what was being done was bad for the client.
It's great for the client the cash surrender value is only $1 less than his deposit and grows every year along with his tax-free death benefit growing as well.
No more responses will be read nor responded to.

Sorry, again I didn't attack you. I merely stated your comment was wrong when you said his beneficiaries will paying higher income taxes on the 150k unless it gets put into a SPWL. that wasn't an attack, it is a factual statement.

Good luck with it, I honestly believe more & more money belongs in SPWL than in Bank CDs or NQ annuities because they can be much more income tax efficient in most cases.

Sorry you are so upset, but I am guessing the other readers on the forum wont dispute any of the facts I stated nor believe I was attacking you. Have a great weekend

 

[Todd King]

I don't believe that is true, but would like to learn if it is.

what state counts all your assets & investments, but ignores you life insurance owned by you? Most calculations for federal or state estate taxes count every asset from cash, securities, land, retirement, personal belongings & the death benefit of term/permanent plans in the valuation of your estate.

Also, the OP was talking income taxes because he was stating the beneficiaries are in higher tax brackets. Estate taxes are not impacted by the beneficiaries income tax brackets as estate taxes are paid by the decedent, not the beneficiary of the accounts

The U.S. states that collect an inheritance tax as of 2019 are Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. However, Maryland (at least) does not impose the tax on close relatives, so there are exceptions to the rule.

 

[Allen Trent]

The U.S. states that collect an inheritance tax as of 2019 are Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. However, Maryland (at least) does not impose the tax on close relatives, so there are exceptions to the rule.

thank you. I was aware of the states that impose an estate tax & that some states exempt some asset items such as life insurance. I was just surprised that the states impose the tax, if any, on the recipient (ie: beneficiary). I had gotten so used to the federal estate tax being owed by the estate of the deceased, not the beneficiary.

thanks again