RayJJohnsonJr Posted October 12, 2011 Report Share Posted October 12, 2011 Does anyone have any recent information on the use of a DB Plan Sub-Trust owning Life Insurance to keep it out of the taxable state. I cannot seem to find any recent articles on the subject. I would appreciate any info you have. Link to comment Share on other sites More sharing options...
Guest Weslie Posted November 2, 2011 Report Share Posted November 2, 2011 There's a lot to learn when getting life insurance - like what type, the amount of coverage, how much will it cost I work for IntelliQuote and we can help you understand life insurance without any commitment from you. Check out our website. http://bit.ly/vMS4H1 Link to comment Share on other sites More sharing options...
Belgarath Posted November 3, 2011 Report Share Posted November 3, 2011 No, I haven't seen anything new on this. Other than Andy Fair, I've never seen anyone who thinks it is a good idea, and that includes me. Any client who thinks about messing this should have a top ERISA attorney and a very high risk tolerance. Link to comment Share on other sites More sharing options...
mbozek Posted November 5, 2011 Report Share Posted November 5, 2011 Does anyone have any recent information on the use of a DB Plan Sub-Trust owning Life Insurance to keep it out of the taxable state. I cannot seem to find any recent articles on the subject.I would appreciate any info you have. The reason that there are no articles on this topic is because any reputable tax publication would not accept an article advocating using a sub trust to exclude LI from the decedent's estate without including citations of substantial authority under the IRC as to why use of the sub trust does not violate the exclusive benefit rule, the non alienation rule and the spousal benefit provisions applicable to qualified plans. I dont think any counsel could write an opinion complying with IRS circular 230 that the LI in a sub trust could be excluded from the decedent's estate without violating all three provisions of the IRC. Also you need to check on whether this use of LI to avoid estate tax is a listed transaction subject to monetary penalities if it is not reported to the IRS. Link to comment Share on other sites More sharing options...
Guest Weslie Posted November 9, 2011 Report Share Posted November 9, 2011 There's a website where you can answer a few basic questions and get a rate quote comparison among major life insurance companies. I work for this company and we help a lot of people: http://bit.ly/vD1iLg Link to comment Share on other sites More sharing options...
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