BSMG Blog: Protecting the Future of Families and Businesses

Leverage Your Clients Tax Benefits by Using Grantor Trust Power of Substitution

Do you have any high net worth clients who have already gifted capital assets to their grantor irrevocable trust? If their trust has the typical power of substitution clause, they may be able to substitute cash for the capital asset.

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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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“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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