The Tax Advantages Of Life Insurance And Annuities
April 19, 2016 by Cyril Tuohy
Income tax returns need to be postmarked by Monday, April 18, unless advisors file for an extension. This year’s tax tips come courtesy of Prudential, whose website contains pages of tax-related strategies.
Material relevant to life insurance and annuities has been condensed in the paragraphs that follow.
Life Insurance
Life insurance can provide beneficiaries with cash to pay estate taxes. This may be a solution to liquidity problems in many estates that involve family-owned businesses, large real estate holdings and collectibles. Although life insurance proceeds pass on to beneficiaries free of income tax, the proceeds are not necessarily free of estate taxes.
Originally Posted at InsuranceNewsNet on April 15, 2016 by Cyril Tuohy.
Categories: Industry Articles
