Quote:
Originally Posted by RIJIMMY
life insurance? So PaulS in that story should have had life insurance to offset the government stealing his $? WTF!Yes, that is good estate planning. As I said, I'm not an estate planner so I can't give you specifics but see below.
an oh, by the way -
Section 2042 of the Internal Revenue Code states that the value of life insurance proceeds insuring your life are included in your gross estate if the proceeds are payable: (1) to your estate, either directly or indirectly; or (2) to named beneficiaries, if you possessed any incidents of ownership (we'll discuss this more below) in the policy at the time of your death
You dont think its robbery the government seizes 55% of your assets when you die? Wow! What an incentive to work hard and provide for your family.
the majority paul dont give a F becuase they wont make that mych money and could care less if the f the rich. thats EXACLTY whats happening now with your O buddy - you know, the millionaires who make 250K a year! THOSE PEOPLE DO NOT HAVE ENOUGH VOTES TO GET OUT OF THE TAX BURDEN THE REST OF THE COUNRTY IMPOSES ON THEM!!
if the majority are not being robbed, why should they care?
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I think the exemption this year is $5,000,000 so I think there is $0 tax in your example above. Also, the death benefit is not taxable to the beneficiary. The ownership that they are talking about in your example above is the ownership of the policy. So if the estate owns the policy, the estate will have to pay tax on the cash value of the policy. If the beneficiary (in this case the 2 kids) owns the policy, they don't have to pay taxes on the cash value when Paul dies. And if I'm correct on the exemption, the ins. will only increase the benefits to the heirs.