Life insurance strategies that reduce estate taxes
With current estate-tax rules set to expire at the end of next yearlife insurance could help heirs to some high net worth clients avoid bigger costs and payments to Uncle Sam in the future.Purchasing a "whole-life" or "permanent" policy rather than one that runs for a defined term carries much higher premiums — but those and other fees paid by high net worth clients for the insurance product will now go toward tax advantages for their estates ' inheriting beneficiaries down the line. As financial advisors, tax professionals and their clients try to make sense of a plethora of questions about the future guidelines looming after many provisions of the 2017 Tax Cuts and Jobs Act expire in 2026life insurance strategies may play a critical role for wealthy estates.Many registered…
