Agent Randy E. Hoffman(08/11/2016) CADOI#0H51968
NO! Very good question because many people are worried about how they would handle a huge sum of money all at once. Beneficiaries can choose to settle with the insurer in a number of ways aside from the obvious and common method of a lump sum payment. These optional modes of settlement include the following:
By Agent Randy E. Hoffman (08/07/2016) CADOI#0H51968
The federal estate tax is 40% on anything above $5.45 million of assets. If the PRINCE estate was worth $300 million, the rough estimate is $120 million tax bill to the feds. The state of Minnesota estate tax is around 13% so the PRINCE estate at his death owes roughly $150 million in taxes which are collected 9 months after death by the IRS. Now, the absurdity is PRINCE not only DID NOT have a will but no TRUSTS. TRUSTS protect against not only taxation but specify who gets what at the death of the deceased’s assets.
A SPECIAL TRUST for life insurance is called the (ILIT) – IRREVOCABLE LIFE INSURANCE TRUST. This is a method to place a life insurance policy inside a trust to protect it from taxation for the express purpose of paying the estate taxes due at death WITHOUT USING THE DECEASED’S ASSETS thereby keeping the wealth in the family.
So, if the PRINCE financial Advisors would have done their job, PRINCE would have owned a $150 million life insurance policy that would have been placed in an (ILIT). He could have easily financed the premiums for the policy with his residual income that his assets were creating.
The reward? ALL of his hard earned wealth would have not been touched and stayed in his beneficiary’s control. In addition to the above estate taxes due, his estate also loses money from the inevitable probate costs that the court will charge to decide who gets what. Attorney fees will joyfully eat up millions. Again, ALL OF THIS COULD HAVE BEEN PREVENTED BY PROPER PLANNING. (Always get credible legal advice from a respected attorney).
By Agent Randy E. Hoffman(08/16/2016) Cadoi#0H51968
PURCHASE NOW gets you lower premium,pay less $ over life of policy,insurable now with good health,preferred rates now,assets protected,estate and love gift maximized,enjoy emotional and mental well-being.
PURCHASE LATER gets you much higher premium, pay more $ over life of policy,risk of worse health(rating increase),risk of becoming uninusurable which means (no policy available),assets unprotected,family in unnecessary probate court,the stress and knowledge of failure of responsibility