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Old 04-23-2012, 08:02 PM   #41
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Originally Posted by Independent View Post
Okay, I think I'm getting it.

...

And, there is no non-insurance trust which can provide the same tax treatment - i.e. any trust that simply held mutual funds would be subject to estate tax.
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Originally Posted by dgoldenz View Post
Bingo.
I think some clarification might be in order for that last line.

If you gift as in the earlier example:

Quote:
There is a gifting exemption of $13k/person per year for each spouse, so if you had three kids for example, a husband/wife could gift them up to $78k/year without eating into their lifetime gifting exemption.
all $78K annually could be put into mutual funds (by the receivers of the gift) and would NOT be subject to estate tax, since it was gifted out of the estate.

As far as I can see, the whole life insurance works the same as any other WL - if the insured dies relatively young, the ins pays more than what was put in, If the insured lives past their actuarial lifespan, you will probably put more into the insurance than you get out. Still seems like a bet with the ins co to me.

-ERD50
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Old 04-24-2012, 06:40 AM   #42
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I concur with GUL for the ILIT, the VUL idea is not good for anyone but the agent.........
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Old 04-24-2012, 07:57 AM   #43
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Of course, GUL being what it is, the construction of the product raises issues with carrier stability over time. TANSTAAF, as always.
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