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- Title
The Case for Survivor Purchase Options in Estates of the "Mid-Wealthy".
- Authors
Gresham, David A.
- Abstract
History shows us that the law regarding federal transfer tax is ever changing. The economic fortunes of clients can be ever changing as well. In a time when the law and economy are increasingly volatile, providing clients with flexible plans that can adjust to future uncertainties is worthy advice. This article explores the drawbacks associated with traditional irrevocable life insurance trust planning, especially for couples considering the purchase of survivorship life insurance to provide liquidity for the survivor's estate. The purchase of Survivor Purchase Option riders, especially for the "mid-wealthy," is then analyzed, as a flexible alternative to survivorship life insurance which, when owned by an irrevocable trust, is a trapped asset unavailable to the surviving spouse who may face tough choices when his or her mate dies.
- Subjects
ESTATE planning; ASSET protection; SECOND-to-die life insurance policies; IRREVOCABLE trusts; LIFE insurance trusts; RIDERS (Contracts); INHERITANCE &; transfer tax
- Publication
Journal of Financial Service Professionals, 2014, Vol 68, Issue 2, p50
- ISSN
1537-1816
- Publication type
Article