I am 66 years old and my husband is 68. We are interested in buying life insurance ONLY to pay estate taxes after we both die. We have approx $4 million.
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I am 66 years old and my husband is 68. We are interested in buying life insurance ONLY to pay estate taxes after we both die. We have approx $4 million.
We reduce the size of our estate each year by gifting $13,000 to each of daughter, husband, 4 grandkids = $156,000. Will life insurance premium be INSTEAD of gifting daughter, or IN ADDITION to it, in order not to incur a gift tax ?
Asked on June 12, 2009 under Estate Planning, New York
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
You have $4 million dollars. You should be consulting with an attorney in person, with all documents showing what you have, what you own. Asking a question about life insurance versus avoiding gift tax is just the tip of the iceberg.
Go immediately to www.attorneypages.com and check his or her record at the New York State Bar. Every year gift tax laws change. Please check with an estate attorney in your state.
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