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Irrevocable Life Insurance Trusts Estate Tax

Husch Blackwell LLP

Understanding the 2026 Changes to the Estate, Gift, and Generation-Skipping Tax Exemptions

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The Tax Cuts and Jobs Act of 2017 provided major changes to the Internal Revenue Code, specifically doubling the federal estate, gift, and generation-skipping transfer (GST) tax exemption (collectively, the exemption) from...more

Bowditch & Dewey

Estate Planning: The Irrevocable Life Insurance Trust

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There is a common misconception that life insurance benefits are not subject to estate tax. While the proceeds of a life insurance policy are not taxable income to the beneficiaries, they are part of a person’s taxable estate...more

Chambliss, Bahner & Stophel, P.C.

Mitigating the Impacts: Sunsetting the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (TCJA) took effect on Jan. 1, 2018, and impacted personal income taxes, small businesses, estate tax rules, capital gains rules, special needs accounts, and much more. The TCJA is scheduled to sunset...more

Rivkin Radler LLP

Corporate-Owned Life Insurance, a Redemption, and The Value of a Decedent’s Stock

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Estate Tax – It’s a Killer- One of the reasons often given for eliminating the estate tax is the substantial economic burden it places upon the estate of a deceased business owner and upon the business itself. Specifically,...more

Levenfeld Pearlstein, LLC

The Gift, Estate, and GST Tax Exclusion Increased by an Unprecedented $860,000 in 2023: How You Can Make the Most of It

$860,000 – that is the amount of the increase in the gift, estate, and generation-skipping transfer (“GST”) tax exclusion that came into effect on January 1st when the exclusion increased from $12.06 million for 2022 to...more

Rivkin Radler LLP

Popular Again: Using Life Insurance Trusts to Hedge Against Estate Taxes

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With the prospect of estate tax exemptions going down and estate tax rates going up, it’s a good time to consider using life insurance as a hedge against potential estate taxes. One way to do that is to add an Irrevocable...more

Stark & Stark

Gift and Estate Tax Changes

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Throughout 2021, Congress and the Executive Branch proposed tax code changes that – had they ultimately passed – would have significantly changed various estate planning techniques. Some proposals would have sidelined a...more

Pillsbury Winthrop Shaw Pittman LLP

House Ways and Means Committee Releases Tax Plan

Plan focuses on eliminating certain available estate planning opportunities and increasing rates for corporations and high net worth individuals. The proposed tax plan from House Ways and Means Committee seeks to eliminate...more

Holland & Knight LLP

House Ways and Means Committee Tax Plan Proposes Changes to Estate Planning

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The House Committee on Ways and Means has proposed a tax plan intended to fund President Joe Biden's "Build Back Better" $3.5 trillion infrastructure program. Among the many changes in this proposed tax plan are three that...more

Verrill

House Democrats Propose Estate and Gift Tax Law Changes: Important Estate Planning Implications

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What you need to know: On September 13, 2021, the House Ways and Means Committee released its proposed tax plan to fund President Biden’s $3.5 trillion “Build Back Better” social and economic spending package. If enacted as...more

Fox Rothschild LLP

The Tax Code Could Change Before Year's End: What Can Wealthy Individuals Do Now?

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President Joseph Biden and the Democratic majority in Congress are working on a $3.5 trillion tax and spending package that could dramatically increase taxes on the wealthy. In addition, new proposals are being floated almost...more

Tucker Arensberg, P.C.

Estate Planning Alert - Legislative Proposals Could Significantly Impact Estate Planning Options

Tucker Arensberg, P.C. on

Last week, the House Ways and Means Committee released proposed legislation affecting numerous transfer and income tax provisions of the Code. These changes, if enacted, will have a significant impact on estate planning and...more

Lowenstein Sandler LLP

House Tax Proposal Would Restrict Grantor Trust Planning: What You Need To Know Now

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On September 13, the House Ways & Means Committee proposed new tax provisions as part of the Build Back Better Act. The proposal includes many substantial tax changes that would affect personal income tax and business tax...more

Adler Pollock & Sheehan P.C.

An ILIT Can Be a Wealth Preserver for your Family

Life insurance is often an integral part of an estate plan. By acquiring life insurance coverage, you can provide liquidity when your family might need it the most, particularly if you’re relatively young. The policy’s...more

Chambliss, Bahner & Stophel, P.C.

How an Irrevocable Life Insurance Trust Can Be Used to Avoid or Reduce the Estate Tax

With the federal estate tax exemption possibly about to be lowered, it may be time to think about steps you can take to keep your estate from being taxed. An irrevocable life insurance trust allows you to pass on money to...more

Adler Pollock & Sheehan P.C.

Family Advancement Sustainability Trust: A Flexible Trust That Can Achieve Many Estate Planning Goals

While, ultimately, you create an estate plan to meet technical objectives, such as minimizing gift and estate taxes and protecting your assets from creditors’ claims, you should also consider “softer,” yet equally critical,...more

Mitchell, Williams, Selig, Gates & Woodyard,...

ILITs and the Reciprocal Trust Doctrine

Throughout 2020, as many tax attorneys and their clients continuously worried about potential changes in federal transfer tax laws that could result with an administration change, numerous articles were published and webinars...more

Farrell Fritz, P.C.

Wills, Trusts & Estates: Plain and Simple – Popular Again: Life Insurance Trusts to Hedge Against Estate Taxes

Farrell Fritz, P.C. on

With the prospect of estate tax exemptions going down and estate tax rates going up, life insurance is being considered again to cover potential estate taxes. One way to use life insurance as a “hedge” against estate taxes is...more

Adler Pollock & Sheehan P.C.

Take the Proper Steps to Insulate Your Estate from Creditors

For years, you may have viewed estate taxes as the main threat to your family fortune, especially if you own a successful business or valuable real estate. But with the federal gift and tax exemption set at $11.58 million for...more

Adler Pollock & Sheehan P.C.

Insight on Estate Planning - October/November 2019: Estate Planning Pitfall - You’ve waited too long to transfer ownership of your...

Generally, the proceeds of one’s life insurance policy are included in their taxable estate. A person can remove them by transferring ownership of the policy, but there’s a catch: Wait too long, and one’s intentions may be...more

Bowditch & Dewey

Estate Planning: The Irrevocable Life Insurance Trust

Bowditch & Dewey on

There is a common misconception that life insurance benefits are not subject to estate tax. While the proceeds of a life insurance policy are not taxable income to the beneficiaries, they are part of a person’s taxable estate...more

Adler Pollock & Sheehan P.C.

Estate Planning Pitfall - You haven’t transferred ownership of a life insurance policy to a trust

After recent tax legislation, including the Tax Cuts and Jobs Act, few tax shelters are left standing. One key exception is life insurance. This brief article details that, if certain requirements are met, the buildup of...more

Adler Pollock & Sheehan P.C.

Planning ahead after a divorce

For those in the middle of a divorce, the last thing on their mind is a review of their estate plan. However, a major life change, such as a divorce, is a critical time to update an estate plan so that wishes are carried out...more

Lewitt Hackman

Benefits of an Irrevocable Life Insurance Trust as Security for Support

Lewitt Hackman on

Divorce or separation agreements often require one spouse to maintain life insurance as security for their support obligation. Attorneys often do not address the tax implications if the insured spouse owns the policy. ...more

Perkins Coie

Irrevocable Life Insurance Trusts - Tax and Nontax Advantages

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Creating an Irrevocable Life Insurance Trust (ILIT) can dramatically increase the liquidity of an individual’s estate and effectively leverage the value of the annual $14,000 per donee gift tax exclusion and the $5,430,000...more

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