Ownership Arrangements

Jan 4, 2005
Contributor: Ray Smith

Third party ownership (adult children or an Irrevocable Life Insurance Trust) is often desirable for persons with potential estate tax problems. The policy may sometimes be transferred out of the estate after the first insured dies. If the survivor lives 3 years after the gift, the full face amount should be out of his or her estate. Questions of ownership should be discussed with an attorney.


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