Mathematical validation for using life insurance in estate planning

The aspiration of any estate plan is to accomplish the client's goals while minimizing the impact of transfer costs and taxes through strategic planning. This is generally achieved through gifting, and/or creating specific trusts and named bequests in order to maximize the net transfer of asset...

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Bibliographic Details
Published inNational Underwriter Vol. 106; no. 25; p. 27
Main Author Robertson, Thomas V
Format Trade Publication Article
LanguageEnglish
Published Erlanger ALM Media Properties, LLC 24.06.2002
EditionLife, health/financial services ed.
Subjects
Advisors
Age
Costs
Estate planning
Estate taxes
Funding
Insurance coverage
Interest rates
Life insurance
Life insurance trusts
Mortality
Statistical data
Tax rates
United States > US
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Summary:The aspiration of any estate plan is to accomplish the client's goals while minimizing the impact of transfer costs and taxes through strategic planning. This is generally achieved through gifting, and/or creating specific trusts and named bequests in order to maximize the net transfer of assets. This paper demonstrates that merely minimizing transfer costs is not synonymous with maximizing net transfer in the field of estate planning. The paper builds a mathematical foundation for an assertion that life insurance is generally a much more efficient transfer technique than a straight cash bequest under most circumstances.
ISSN:1940-1345