Second to Die Life insurance
Second to Die Life Insurance is used to reduce the overall
cost of a Life Policy and/or provide for funds to cover Estate
tax when they are due, typically at the death of the second
spouse. These policies are also commonly used in conjunction
with a Charitable Remainder Trust to replace a gifted asset
for your heirs.
Lets look at an example:
Dave and Mary Johnson set up a Charitable Reminder Trust
with a property they sold for 1.5 Million Dollars. They saved
$315,000 in taxes, gained a $270,000 charitable tax deduction
and named two local charities and their alma maters as the
charitable recipients of their Charitable Remainder Trust.
However; the Johnson's have 3 children and they would like
to replace 1 Million of the gifted asset as that represents
approximately what they would have received had they inherited
the proceeds from the after tax property sale and after estate
They decide to purchase a Second to Die Life Insurance policy
with a 1 Million Dollar Death Benefit. Note that the death
benefit from a life insurance policy is paid out 100% income
tax free and if structured properly 100% estate tax free as
The policy premiums can be paid using a portion of the income
generated from the Charitable Remainder trust.
For more details and a FREE Second to Die Life Insurance
quote, visit one of our other web sites at:
Harding Financial Services, LLC
The information contained on this site is for educational
purposes only, it is not intended to be professional tax or
legal advise; consult a tax advisor about your specific situation.