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Flashcards in Chapter 6 Deck (65)
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61

Who are FLPs designed for

attractive estate planning tool for same-sex couples are their flexible membership requirements.

62

Whats a major advantage of SLF?

its like corporate stockholders, partners enhoy liabiklity protection agaisnt creditors.
- as an irrevocable trust, assets places in the FLP are shifted out of the estate of the grantor with subsequent drop in estate value and additional tax benefits created due to wealth and income shifting

63

What are the two roles played by life insurance in the FLP?

As a funding vehicle for the SLP or as a apart of the buy-well arrangement that exist between partners themselves. The FLP is an adaption of the common business partnership. Buy-sell agreements can be used in FLP estate planning just as they are used in traditional business continujation sales.

64

What are some examples of financial justifications for u/w the elderly.

1. estate transfer
2. continuing income
3. funds for final expenses
4. stock repurchase
5. mangement and protection of accumulated assets
6. changing investments from growth to quality
7. long term care needs.

65

The purpose of life insuranfcef in estate planning is 3-fold. state this

1. LI can replace assets lost due to estate transfer cost.
2. Life insurance an transfor assets, as is the case in a buy-sell agreement for a FLP or the purchase of an illiquid asset from an estate by a trust, with LI proceeds.
3. LI can increase as increase assets, as happens in private placement insurance.