Question

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wire the death proceeds will be available to provide income for his wire during her life time and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free or federal gift and estate taxes as possible with respect to both him and his wire. Which or the following courses or action would best accomplish these objectives?

Accepted Answer

Assign the policy to an irrevocable inter vivos trust with five and five powers and designate the trustee to receive the death proceeds

Answer

Assign the policy to his wire who will establish a revocable inter vivos trust to receive the death proceeds

Answer

Establish a revocable inter vivos trust and designate the trustee to receive death proceeds

Answer

Designate his wife as beneficiary and she will establish a testamentary trust in her will to receive the proceeds at her subsequent death

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his…

Take the free HS-330 practice test

Other HS-330 practice questions