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Posted by nesss01 on November 15, 2007, 3:01 pm
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If I have term life insurance for 5 million dollars, owned
by my wife, with my wife the primary beneficiary and our
kids the contingent beneficiaries, and we both die
simultaneously, will there be estate tax? (assume our wills
have eachother as primary beneficaries and kids as secondary
for everything)
Thanks
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Posted by Paul Thomas, CPA on November 16, 2007, 3:37 pm
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> If I have term life insurance for 5 million dollars, owned
> by my wife, with my wife the primary beneficiary and our
> kids the contingent beneficiaries, and we both die
> simultaneously, will there be estate tax? (assume our wills
> have eachother as primary beneficaries and kids as secondary
> for everything)
Estate tax is due on her estate (even if there were nothing
else. She's the owner and that amount goes to her estate.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by William Brenner on November 17, 2007, 2:03 am
Please log in for more thread options Paul Thomas, CPA wrote:
>> If I have term life insurance for 5 million dollars, owned
>> by my wife, with my wife the primary beneficiary and our
>> kids the contingent beneficiaries, and we both die
>> simultaneously, will there be estate tax? (assume our wills
>> have eachother as primary beneficaries and kids as secondary
>> for everything)
> Estate tax is due on her estate (even if there were nothing
> else. She's the owner and that amount goes to her estate.
I believe that the insurance proceeds would not enter the
wife's estate if the wills specified that, in the case of
"simultaneous" deaths, it is assumed that the wife died
first. (I believe that to be the law in some states.)
That is is not an uncommon will clause; and is included
precisely for situations such as this. The insurance
proceeds, as well as the husband's other assets, would then
go directly to the contingent beneficiaries.
Bill
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by D. Stussy on November 16, 2007, 3:37 pm
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> If I have term life insurance for 5 million dollars, owned
> by my wife, with my wife the primary beneficiary and our
> kids the contingent beneficiaries, and we both die
> simultaneously, will there be estate tax? (assume our wills
> have eachother as primary beneficaries and kids as secondary
> for everything)
Definently no tax if you die in 2010.
Aside: I'm wondering how many people are planning on dying
that year just to beat the transfer taxes?
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by dpb on November 17, 2007, 2:03 am
Please log in for more thread options D. Stussy wrote:
>> If I have term life insurance for 5 million dollars, owned
>> by my wife, with my wife the primary beneficiary and our
>> kids the contingent beneficiaries, and we both die
>> simultaneously, will there be estate tax? (assume our wills
>> have eachother as primary beneficaries and kids as secondary
>> for everything)
> Definently no tax if you die in 2010.
>
> Aside: I'm wondering how many people are planning on dying
> that year just to beat the transfer taxes?
But I think they better hurry if they're planning on it
'cause I expect the loophole to be closed by then... :)
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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