Beth Botti photo

Beth A. Botti, CFP®, ChFC, CLU, CDFA™

Financial Consultant

California Insurance License #0G24537

 

612 Wheelers Farms Road, Milford, CT 06460

 

Phone:  203-877-6556 Ext. 169

Fax:      203-301-0736

Email: beth.botti@equitable.com

May/June 2019

The Gift That Keeps on Giving

The Gift That Keeps on Giving

While it pales in comparison to the excitement of giving and receiving smartphones and tablets as gifts, the gift of life insurance can have a much greater impact over time. From gifting an in-force policy to making annual gifts meant to pay premiums, you can have a lasting impact on the financial fortunes of loved ones through life insurance.


Gifting Premiums
Giving annual cash gifts to as many people as you want is a great way to reduce your taxable estate, and by itself it can also provide a means to provide future wealth, especially if those receiving the gifts put it toward insurance on your life that names them as beneficiaries. Note here that you can’t force the gift recipients to buy life insurance. With proper structuring and the help of qualified financial and tax professionals, your gift can help you
leave loved ones a financial legacy after you’re gone.


Irrevocable Trusts
Another way to leave estate-tax-free life insurance to loved ones is to establish an irrevocable life insurance trust, with terms saying your gifts to the trust are for life insurance premiums on your life and for the benefit of your beneficiaries. There will be a cost to establishing this trust, as well as a loss of control outside the trust’s written terms, but this gifting method can help you leave more behind.


Existing Policies
One more way you might consider leaving life insurance to loved ones is to gift an existing policy, either directly to loved ones or to an irrevocable trust for the benefit of the trust’s beneficiaries. This transfer comes full of potential tax pitfalls, which makes working with dedicated professionals essential. For example, transferring a policy whose current value exceeds the annual gift tax limit could trigger taxes. Transferring a policy that has had a loan taken against it can also cause tax complications. Also, beneficiaries may not receive the full tax benefits of the gift of life insurance — or any asset, for that matter — if the transfer occurs less than three years from the donor’s death. Talk to your insurance and tax professionals who can help you to avoid complicated surprises.

GE-2314425c (11/18)(Exp. 11/20)


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.

GE-6572038.1 (4/24)(Exp. 4/26)

CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.

www.equitable.com

Check the background of this investment professional on FINRA's BrokerCheck


Equitable Advisors, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.