“IRC Sec. 1035 Exchanges With “Boot”

Any withdrawal, loan payoff or loan origination in a life policy in combination with an IRC Sec. 1035 exchange can be considered a “Boot” transaction and can cause unintended income tax consequences. For this post we will focus on policies with exiting loans. Extra precautions must be taken if you plan on using policy values to reduce the amount of a loan before or after the transaction.  Tax...
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Risk Management for Clients; Spousal Lifetime Access Trust and the True Story of Bob and Barbara

The pool of prospects who need life insurance for wealth transfer planning is shrinking. The current exemption equivalent and annual gift tax exclusions are indexing and their current levels are: Exemption equivalent $5,490,000.00 Gift exclusion $14,000.00 See also: W&S Financial Group Distributors 2017 Tax Reference Guide With proper planning married couples can pass $10,980,000 free from...
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