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CONCLUSION

Life insurance is extremely effective for use in the estate planning process. The ability to remove the proceeds from the gross estate through gifts of policies and third-party ownership should be part of the estate plan of wealthy individuals who face estate liquidity problems. The ability to pay estate taxes with discounted dollars makes the life insurance product a unique planning tool.

NOTES

IRC Sec. 101(a)(1).
IRC Sec. 101(a)(2).
IRC Sec. 7702(f)(7)(B).
IRC Sec. 72(v).
IRC Sec. 7702A.
IRC Sec. 264(a)(1).
IRC Sec. 72.
IRC Sec. 72(e)(5).
Treas. Reg. Sec. 1.72-9.
IRC Secs. 2033-2042 define which property interests must be included as part of the decedent's gross estate for purposes of imposing the federal estate tax.
See IRC Sec. 2035.
Action on Decision (AOD) 1991-012 (Estate Headrick v Comm'r).
See IRC Sec. 2056.
See IRC Sec. 2206.
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