Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the taxable estate. But there are two potential traps in this. The prior article examined the first trap, the three-year lookback of Section 2035. This article by my friend and colleague Steve Hartnett, an estate planning expert will examine how the Transfer for Value rule can make life insurance taxable. Read on to learn more about how to avoid the income taxation of life insurance.
Timothy P. Murphy is an estate planning and elder law attorney whose practice emphasizes helping people to build, preserve and pass on their wealth. He works with his clients to accomplish their goals while avoiding unnecessary court proceedings and minimizing or eliminating exposure to death taxes.
Latest posts by Timothy P. Murphy (see all)
- Social Security Retirement Benefits Basics - August 1, 2020
- So You’ve Been Named the Executor of A Will. Now What? - July 30, 2020
- Funeral Arrangements Can Make or Break Family Relationships - July 28, 2020
