Rumor has it that Congress will pass a temporary one-year extension of the estate tax before the end of the year. This would continue the estate tax at a 45% maximum rate and a $3.5 million exemption. Otherwise, the tax will be ‘repealed’ in 2010 and then, in 2011, revert to a maximum 55% rate and $1 million exemption.
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The blended interest rate used to calculate taxable income on demand loan split dollar plans is falling to a historic low 0.82%. The new rate, effective from July 1, 2009 until June 30, 2010, makes those plans less expensive than ever before. If you own a business, consider this question. Will your bank, suppliers, and employees – and investors – feel more confident or less confident if the death of a key person is followed by a large infusion of cash into the business? Late last week the IRS provided some answers to questions about the 2006 law that taxes most of the death benefit of business-owned life insurance. IRS Notice 2009-48 answers many questions. It leaves others unanswered and raises yet others. If you own or advise a business, it’s important to know what employer-owned life insurance is and the rules you need to follow to keep the death benefit income-tax free. “When you’re in trouble, ask a question,” Roger Zener taught. Here’s a true story that shows how effective that can be in a sales interview. The principle, however, applies to almost any human interaction. In 1986, Roger lured me out of a private practice of law in Eugene, Oregon to join him in the Advanced Marketing [...] Why do financially successful people buy life insurance? It may surprise you that the answer has little to do with costs. “Discounted dollars” – while having a lot of sizzle – is not the real reason people use life insurance. Consider someone who has managed to build (and, in today’s economic climate, preserve) a comfortable net [...] |
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Copyright © 2010 Walter Bristow - All Rights Reserved
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