How can I find out who the Beneficiary is Under a Life Insurance Policy?

There are so many issues that come up during the estate administration of a person who has died.  Often family members want to determine the beneficiary under any life insurance policy.  Further, if there are children of a prior marriage this information may not be easily attainable. 

Life insurance policies do not go through the probate process.  The probate process does establish a public file that any one can view.  However, the insurance policy is a private contract between the insured and the insurance company.  There is no real audit trail or documentation regarding who may have received insuarnce proceeds.  Therefore, it is important to let family members know about your insurance policy or at least the person that you named as beneficiary.  You do not want to leave your family members in the dark if they need to know. 

Put your affairs in order today.  Contact us at www.ythlaw.com

Estate Planning Mistakes - Number Twenty-eight

The federal estate tax at the present time is 35%. This is a significant amount on any estate and there may not be any cash to pay the tax. For example, the estate value may all be in real estate or in a closely held business. Planning is critical to make sure there is cash to pay the estate tax. One planning option is life insurance.

However, if an estate is already in such a situation, no cash to pay the taxes, then extensions may be granted by the IRS. The extensions will be for a "reasonable period" for a "reasonable cause".

Get the expert advice that you need. Contact us at http://www.ythlaw.com/ if you have probate or estate planning questions.

Estate Planning Mistakes - Number Twenty-Six

It is important to know that face value of your life insurance is counted towards the value of your estate for Federal Estate Tax purposes. Therefore, the value of your estate could be subject to federal estate tax because your insurance policy increases the value of your estate.

An easy way to eliminate this problem is not to own the life insurance policy in your name. Instead, have the policy owned in the name of a trust. Such trust is known as an Irrevocable Life Insurance Trust. It can save your estate significantly on taxes.

Contact our office at http://www.ythlaw.com/ for all your Probate and estate planning needs.