Life insurance trusts are effective mechanisms for transferring wealth to a junior generation of a family in a highly tax-favored manner and providing liquidity after the settlor’s death, whether to pay death taxes or for other purposes. These trusts involve the intricacies of choosing the right type of trust, defining “Crummey” powers in a way that permits the payment of insurance premiums, and assigning a value and defining terms in a way to avoid IRS scrutiny or defend an audit. When properly structured, life insurance trusts are highly effective in achieving client goals. When their inherent intricacies are overlooked or not properly drafted, these trusts expose clients and their larger estate plans to substantial IRS scrutiny and liability. This program will provide you with a practical guide to structuring and drafting life insurance trusts.
• Planning with life insurance trusts to transfer wealth, fund death taxes, and provide liquidity
• Types of life insurance trusts, including single-life and second death trusts
• Intricacies and traps of drafting the underlying trust and choosing the right policy
• Understanding the relationship of “Crummey” powers to pay ongoing insurance premiums
• Generation Skipping planning for life insurance trusts
• Counseling clients about tradeoffs of financial and tax benefits v. control in insurance trusts
David T. Leibell is Senior Wealth Strategist at UBS Private Wealth Management in New York City, where he provides clients comprehensive strategies to assist in the preservation, transfer and management of wealth. He also serves as an internal resource for UBS clients on all issues related to tax, estate planning, philanthropy and wealth planning. He is chairman of the Family Business Committee for Trusts and Estates Magazine and is listed in “The Best Lawyers in America” for two practice areas— Trusts and Estates and Charities/Non Profits. Before joining UBS, he was a partner in the Private Client Services Department of Wiggin and Dana, LLP in Greenwich, Connecticut. Mr. Leibell received his B.A. from Trinity College and his J.D. from Fordham Law School.
Daniel L. Daniels is a partner in the Greenwich, Connecticut office of Wiggin and Dana, LLP, where his practice focuses on representing business owners, corporate executives and other wealthy individuals and their families. A Fellow of the American College of Trust and Estate Counsel, he is listed in “The Best Lawyers in America,” and has been named by “Worth” magazine as one of the Top 100 Lawyers in the United States representing affluent individuals. Mr. Daniels is co-author of a monthly column in “Trusts and Estates” magazine. Mr. Daniels received his A.B., summa cum laude, from Dartmouth College and received his J.D., with honors, from Harvard Law School.
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