INSURED DIED CAN BENEFICIARY SHARE PROCEEDS TAX FREE

by ADCT3 » Sun Oct 17, 2010 07:23 pm
Posts: 1
Joined: 17 Oct 2010

I AM LIFE PARTNER AND BENEFICIARY OF HIS INSURANCE POLICY AND
WOULD LIKE TO SHARE A PORTION OF THE PROCEEDS WITH HIS SISTER
WHO IS THE SECONDARY BENIFICIARY IN THE EVENT THAT I HAD DIED.
CAN I DO THIS IN ANY WAY THAT WOULD BE CONSIDERED INSURANCE AND NOT A GIFT SUBJECT TO GIFT TAX ?

Total Comments: 1

Posted: Mon Oct 18, 2010 10:23 am Post Subject:

CAN I DO THIS IN ANY WAY THAT WOULD BE CONSIDERED INSURANCE AND NOT A GIFT SUBJECT TO GIFT TAX ?



No.

You may give up to $13,000 to any individuals of your choosing this year. Due to the effect of the expiration of EGTRRA at midnight on December 31, 2010, on or after January 1, 2011, you may only be able to give $10,000 or $11,000 as a tax free gift (unless Congress changes things). (You could always use some of your $1,000,000 lifetime gift tax exemption credit and give a single gift in excess of $13,000 in 2010.

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