Ten Life Insurance Tips

them beneficiaries of your Life insurance can be a life insurance. A wiser great estate planning and move may be to establish financial planning tool. For a trust for them, which example, it can replace lost gives more control over income during your workhow and when monies are ing years, and thereafter, distributed. help replace lost retirement 6. If your spouse is not and pension income. If a U.S. citizen, consider properly integrated into establishing a Qualified your estate plan, it can provide non-taxable monies Joseph S. Karp, Domestic Trust and namC.E.L.A. ing him/her as the benefito help pay estate taxes. But ciary. Don’t make your non-citizen like any other tool, life insurance must spouse the beneficiary of your life be properly managed. How it is purinsurance, since doing so will probachased and owned will impact whether bly trigger estate taxes. the proceeds are subject to estate 7. Be sure to name contingent benetaxes and how your family receives ficiaries in the event your first-named Listen to Joe Karp with beneficiary predeceases you. Anita Finley on Saturday, 8. If you purchased your life insurOctober 31 from 7:30-8:00 AM ance to fund a buy-sell agreement, on WSBR 740AM and on the keep an eye on the policy to make sure Internet at www.wsbrradio.com. it keeps up with any increases in the value of your business. 9. If you are married and you do not the money. Here’s a concise list of have sufficient assets in your living some issues to consider when purtrust to pass on the maximum amount chasing life insurance: of tax-free money to your heirs, you 1. If you are the owner of the polmay want to consider making your icy, the death benefit is included living trust beneficiary of the policy. in your gross estate for estate tax 10. If you are considering cancelling purposes, and the proceeds may be your policy, consider a life settlement subject to estate taxes. Therefore you rather than taking the surrender value. should not be the policy owner. 2. D o n ’t make you r estate the In last month’s column, in disbeneficiary. If you do, you’ll trigger cussing Joanne’s inheritance, it probate. said she is going to be kicked off 3. Minor children should not be SSDI. That is wrong. It should named as beneficiaries. This would have read SSI, NOT SSDI. likely require court involvement to Joseph S. Karp is a nationally certified approve the distribution. and Florida Bar-certified elder law attorney 4. Review your policies periodical(C.E.L.A.) specializing in the practice of Trusts, ly, particularly when major life events Estates and Elder Law. His offices are locatoccur like divorce or the death of a ed at 2500 Quantum Lakes Drive, Boynton beneficiary. You also need to keep Beach; 2875 PGA Blvd., Palm Beach Gardens; and 1100 SW St. Lucie W. Blvd., Port an eye on your financial and tax St. Lucie. Call him at 561-752-4550 (Boynsituation to ensure that your policy ton); 561-625-1100 (Palm Beach Gardens); continues to meet your goals. or 772-343-8411 (Port St. Lucie). Toll-free 5. If your intended beneficiaries from anywhere: 800-893-9911. E-mail: KLF@ are very young, or of any age and Karplaw.com or website www.karplaw.com. Read The Florida Elder Law and Estate financially irresponsible, don’t make

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