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.

Get Legal Help Today

 Secured with SHA-256 Encryption

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 12 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption