Careful life insurance planning has always been important. But come December 31, 2012, smart planning will be more important than ever!
That’s because the current $5.12 million exemption from estate taxes expires on that date, and lawmakers have pegged the 2013 exemption at just $1 million and increased the tax rate from 35 to 55 percent!
But don’t despair. With tax-smart planning, you can lock in the payouts you receive from life insurance policies completely free of tax!
Want to find out how? Read my new article titled Tax Tips for Tax-Free Life Insurance.
Three ways our fact-filled article can help you:
- We’ll explain the tax advantages of life insurance. The first big tax advantage is that death benefit payments are generally free of federal income tax. Which is great. But you still have to worry about estate taxes. We’ll tell you what to watch out for when you read the full article.
- You’ll learn why setting up an “irrevocable life insurance trust” can save you a lot of money. It’s really pretty simple. The trust pays the life insurance premiums with cash that you provide. When you die, life insurance death benefits go to the trust’s beneficiaries you named. And you don’t have to pay income tax or estate tax on the benefits because the trust is the legal owner of the policies. Want the details? read the full article.
- We’ll tell you four things to watch out for. If you set up an irrevocable life insurance trust, there are details you’ll need to pay attention to. We’ll explain four of the most important when you read the full article.