TaxProfBlog – Democrats’ Tax Plan Upends Estate Planning Using Trusts With Life Insurance (October 7, 2021)

Paul Caron has published an article on the TaxProf Blog, titled “Democrats’ Tax Plan Upends Estate Planning Using Trusts With Life Insurance”, which discusses the effects of the proposed legislation on estate planning. The article begins as follows:

The tax plan taking shape in Congress would strangle a strategy widely used by the wealthy to shield their estates from taxes and pass on major wealth to heirs. Specifically, it would erase the long-standing benefit of keeping life insurance in certain trusts, by making its value subject to the 40% estate tax when the policy owner dies. That’s a huge change: Currently, the trusts and their assets aren’t subject to the levy.

Click here to see the full article : “Democrats’ Tax Plan Upends Estate Planning Using Trusts With Life Insurance”

Posted by Isabella King, Associate Editor, Wealth Strategies Journal.

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