New York City Attorneys providing sophisticated estate plans using life insurance:
The attorneys at Maurice Kassimir & Associates, P.C. use insurance not only for traditional purposes, but also as a tool in an estate plan to preserve and direct distribution of assets.
Helping clients maximize insurance benefits. . .
The firm’s lawyers also analyze policies to make sure their clients are getting the maximum benefit they deserve from their insurance policies. For example:
Maurice Kassimir & Associates, P.C. attorneys reviewed a new client’s already existing life-insurance policy, and realized he had bought an extremely high-commission product in which the commission actually exceeded the first-year premium. At the time the policy was purchased, the same insurance company had another available product with a substantially lower commission. Maurice Kassimir & Associates, P.C. negotiated an agreement with the insurance company to infuse an additional $200,000 of cash value into the policy to make up for the disparity.
Another client was paying $170,000 per year in annual life insurance premiums. An insurance analysis discovered this premium was far in excess of the market. A tax free 1035 exchange resulted in a new policy for the same death benefit with guaranteed premiums of less than half of the previous premium ($80,000).
Recommendations regarding life insurance is not a cookie-cutting operation at Maurice Kassimir & Associates, P.C.. It is a matter of finding solutions that best meet the needs of an individual client. For some people, an inexpensive term life insurance policy best fits their needs. Other clients require permanent life insurance.
Using Insurance Trusts to Preserve Assets. . .
Maurice Kassimir & Associates, P.C. knows how to maximize the benefits of life insurance. A life insurance trust can be a helpful tool in this regard.
Life insurance benefits are includable in a taxable estate if the insured is the owner of the policy or retains any material control over the policy. But if the insured gives up his right to control the policy, which is instead owned by a trust, the benefits can flow to his children, without the imposition of any estate tax.
Advising on Private Placement Insurance
A typical permanent life-insurance policy will often generate a return of 5 or 6 percent per year (assuming normal life expectancy). However, private placement variable insurance policies can generate more growth if the insurance funds are invested more aggressively, for example, in mutual funds or hedge funds. The cash value of the insurance policy can grow at a faster rate, and is not subject to annual income tax.
The attorneys at Maurice Kassimir & Associates, P.C. can find creative solutions to your particular insurance and estate planning problems, and implement them accordingly. Contact them to see how they can meet your estate planning goals.