The nine lives of second-to-die

Second-to-die policies can help with estate taxes, but that’s far from all. Second-to-die life insurance, also called survivorship life, is most closely associated with the payment of federal estate taxes. In fact, it is accurate to say that such policies were created for that specific purpose. This is an industry, however, that is hard to … Continue reading

The 9 lives of second-to-die

By Louis S. Shuntich, J.D., LL.M for LifeHealthPro.com. Louis S. Shuntich, J.D., LL.M., is senior vice president, Advanced Planning, Lincoln Benefit Life Company, Second-to-die life insurance, also called survivorship life, is most closely associated with the payment of federal estate taxes. In fact, it is accurate to say that such policies were created for that … Continue reading

Use Caution When It Comes To Backdating Policies

Life insurance policies are priced on the age of the insured — the lower that age, the lower the price. Consequently, the practice of backdating policies has developed as a way of keeping down the cost of coverage, and one year can make a significant difference in some cases. Besides obtaining a lower price, another … Continue reading

Asset repositioning in a time of low interest rates

With interest rates at historically low levels, certain types of fixed interest rate financial assets may prove to be inefficient conduits for the transfer of wealth to heirs. These fixed assets include CDs, money markets, corporate bond funds and U.S. government securities. Yields on these investment instruments have declined dramatically, thus leading to shrinking levels … Continue reading

Transferring Ownership Of Life Insurance

What is the value of a life insurance policy when it is transferred from one policyowner to another policyowner? Are there guidelines we can rely on to determine the value for income tax purposes, gift tax purposes or sale purposes, depending on the facts of the case? These are questions that I am frequently asked. … Continue reading