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BSMG Blog: Protecting the Future of Families and Businesses

Distribution Options for Inherited Non-Qualified Annuities

Do you have clients who own annuities, who are in poor health or have recently passed away? If so, you may be wondering what the distribution options are for the beneficiary of the contract. This is a question that comes up frequently in the annuity world. 

In this article, we take a look at inherited non-qualified annuities for spouses, non-spouses and trusts.

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Understanding the Inherited IRA Legacy Plan

Have you encountered a client, maybe a successful business owner or professional, with more than $1,000,000 in their IRA account? Many of these IRA owners have multiple sources of income as they approach their retirement years. 

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Universal Life Policy With Indemnity LTC Rider Owned By An ILIT

The use of an indemnity Long Term Care (LTC) rider is crucial to keep the life insurance death benefit estate tax free. That’s because any rider benefits will be paid only to the Irrevocable Life Insurance Trust (ILIT) as policy owner, and NOT used to pay extended care costs directly to the extended care provider. Since LTC benefit claims are paid only to the ILIT, this indemnity style LTC rider does NOT create an incident of ownership in the UL policy.

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“Survivor Survivorship” Section 1035 Exchanges

During the 1990s and early 2000s, billions of dollars of survivorship life insurance was sold.  This type of insurance provided a low present value cost and a very competitive internal rate of return (IRR) on death benefit out to joint life expectancy.  The primary need for this insurance was to offset federal estate taxes so the estate owners could leave a larger inheritance to their heirs. 

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Taxation Of Policy Sales To Life Settlement Companies- BSMG's Russell E. Towers

Taxation Of Policy Sales To Life Settlement Companies

When a life insurance policy is sold to a life settlement company, certain tax rules must be followed by the policy owner/seller.  This taxation is governed by Rev. Rul. 2009-13 where the IRS contrasted the taxation of a policy which has been surrendered with the taxation of a policy which has been sold to a settlement company.

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Reduce Estate Taxes! QPRT

For Higher Tax Brackets, a Home is Often Much More Than Just a House

The Qualified Personal Residence Trust (QPRT) has become a basic estate planning technique used by many estate planning attorneys as part of their standard package of estate planning documents.

This Advisor Magazine article, by BSMG's Russell E. Towers, explains why QPRT's can be a great estate planning solution and a hypothetical QPRT case study.

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