• Patrick D. Newton is a North Carolina Board Certified Specialist in Estate Planning and Probate Law.

Trust Owned Life Insurance Reviews

If you are the Grantor or Owner/Trustee of a Trust Owned Life Insurance (TOLI) policy, chances are that you have not reviewed your trust or the insurance policies owned by the trust on a periodic basis to make sure to make sure that the insurance policy is not at risk. In fact, many policies have not been reviewed since their initial purchase. IS YOUR POLICY AT RISK? Rapidly evolving developments in insurance products and features…changes…

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Do I have to file Gift Tax returns for the gifts to my Insurance Trust?

Filing a gift tax return for an Irrevocable Life Insurance Trust (ILIT), even if not technically required because all gifts are below the annual exclusion, is a good idea. Benefits: Filing starts the statute of limitations running on the IRS to audit the gift. Filing allows you to decide affirmatively whether Generation Skipping Transfer Tax (GST) exemption is allocated. Allocation of GST to an ILIT The GST Annual Exclusion does not apply to a gift…

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Irrevocable Life Insurance Trusts (ILITs)

An ILIT is just an irrevocable trust that holds life insurance. An ILIT is used to make the death benefit escape estate tax. Life insurance already escapes income tax. Avoiding both tax systems can make life insurance a very attractive investment for the future of your family. With the estate tax exemption just over $5 million and climbing, many would be client believe that estate planning and estate tax planning in particular are no longer…

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