The bottom line Charitable gift annuity vs life insurance gift planning comes down to timing: a charitable gift annuity can provide fixed payments during your life, while a life insurance gift is designed to deliver a death benefit to charity. The ownership, deduction, and estate-tax results depend on the documents. The best choice depends on … Read more

The bottom line Entity purchase versus cross purchase tax consequences usually turn on policy ownership, premium payer, and who receives the death benefit: the business owns and funds an entity purchase, while co-owners fund a cross purchase personally. Both structures can receive generally income-tax-free proceeds, but estate, basis, and corporate-tax analysis still require advice. The … Read more

The bottom line Which tax returns do life insurers request? There is no universal checklist. Depending on the application, an insurer may ask for personal or business returns, selected schedules, or an IRS transcript to verify financial information. The exact documents and years depend on the insurer’s process, the policy purpose, and the facts in … Read more

The bottom line Gift vs sale of life insurance policy choices solve different problems. A gift transfers ownership without a purchase payment, while a life settlement transfers the policy to a buyer for cash. The right path depends on control, future premiums, estate goals, and the tax treatment of the specific transfer. Gifting keeps the … Read more

The bottom line What are crummey notices for ilit gifts? They are written notices that give a trust beneficiary a legally enforceable opportunity to withdraw a contribution for a limited period. That present-interest right can let an otherwise future-interest gift qualify for the federal annual exclusion, but the trust terms and administration must support the … Read more