Exciting New Format Coming Soon…
Posted August 19th, 2011
The National Underwriter Company Presents:
Advanced Markets Case Study
Beginning next month The National Underwriter Company will begin its case series for wealth managers. The case studies will be in addition to our daily articles. Check back in September to see the new content.
The case studies have expert commentary and analysis to help wealth managers with common planning issues.
Here’s a sneak peak of what is to come…
Our experts will soon analyse this case:
In a conversation between an elderly widow and her cousin, the cousin agrees to move to California in 2005 to stay with and care for the widow. The widow in return agrees to name the cousin as beneficiary to half of her whole life insurance policy (which has a death benefit of $12 million). Thus the beneficiary will receive $6 million upon the death of the widow. In 2011, the widow dies after five and one half years of care.
1 What are the tax consequences to the widow?
2 What are the tax consequences to the estate of the widow?
3 What are the tax consequences to the beneficiary/cousin?
Tags: Beneficiary, California, insurance, Internal Revenue Service, IRS tax forms, Tax, United States, Widow