Estate Flashcards
(118 cards)
1
Q
define fee simple property ownership
A
gives owner right to use, possess, dispose of property in any way they choose during life and at death
passes through probate
sole ownership property
2
Q
define life estate property ownership
A
partial interest in property giving person right to possess and use property for remainder of the individual’s life or remainder of someone else’s life
life tenant has obligation to pay tax, make repairs, not commit waste
created either voluntarily or by operation of law
holder of life estate does not choose who receives property at conclusion of estate (this is the remainderman’s decision)
does not qualify for marital deduction
3
Q
define term of years property ownership
A
entitles owner to possession and/or enjoyment of property for fixed period (e.g. lease)
4
Q
define remainder (future interest)
A
right of third party to use, possess, and enjoy property after intervening right of someone else
5
Q
define reversion (future interest)
A
right of original owner or transferor to use, possess, and enjoy property after intervening interest
6
Q
why is distinguishing present vs. future interest important?
A
only present interest gifts of property are excludible for gift tax purposes
future interest are important in drafting irrevocable trusts for client wanting flexibility and direction in distribution of estate after death
7
Q
what is community property?
A
***subject to probate
assumes property acquired during marriage belong to both spouses unless designated a separate property
upon marriage, each spouse has undivided interest in all community property and both must consent to future transactions of that property
one half of value is included in probate and gross estate of first spouse to die
major advantage is that both halves of property receive stepped up/down basis to FMV at first spouse’s death
only portion owned by decedent can be transferred by will
8
Q
define common-law property
A
separate property means titled in only one spouse’s name
vast majority of states use this method
9
Q
what is the fundamental characteristic of joint tenancy with right of survivorship?
A
property passes to surviving owner by right of survivorship, by operation of law (avoids probate)
no need to write a will to pass property here
joint tenants have right to sell, but this would destroy survivorship right
stepped up basis of one half of property upon gift or death of first tenant, but one half of property is included in estate of first to die (spouses), but no estate tax liability (qualifies for marital deduction)
percentage of contribution rule used - portion of property included in decedent’s gross estate is based on relative contribution toward purchase price of property (non-spouses)
each tenant owns fractional share of property
taxable gift triggered if one person contributes more to purchase price than the other
if unmarried tenants contribute unequal amounts toward purchase price, tenant contributing greater percentage of purchase price has made gift to other tenant
10
Q
what are the characteristics of tenancy by the entirety?
A
right of survivorship
only between spouses and cannot sever interest without consent of other spouse
one half of value of property held is included in gross estate of first spouse to die
joint creditor protection
11
Q
who has equitable and legal interest in a trust?
A
beneficiary
trustee
12
Q
what are the characteristics of tenancy in common?
A
property owned by 2+ people
each tenant has undivided piece of entire property
no survivorship rights (remaining tenants do not automatically receive additional pro-rated interest)
interests may be unequal and acn be sold, donated, willed, or pass through intestate succession (usually passes through probate)
13
Q
What are the main advantages and disadvantages of probate?
A
Adv: Clean titling of assets Orderly administration Implements objectives with valid will Protects decedent against untimely creditor claims Creditor protection to hear claims
Dis:
Cost and complexity
Timing delays
Public process
14
Q
What are the main ancillary probate rules?
A
Personal assets owned by descendent probated according to laws of state of residence
Real assets owned are probated according to state in which located
Intangible assets can be probated together in whatever state
15
Q
What 3 types of transfers avoid probate?
A
Transfer by operation of law, trust, and contract using beneficiary designations
16
Q
Define uniform simultaneous death act
A
Each tenants death occurs within 120 hours of each other, then each joint tenant’s half ownership is subject to probate
17
Q
many advantages to having a valid will:
A
■The ability to name an executor or personal representative to administer the testator’s estate
■The ability to designate a guardian to take care of the testator’s minor children
■The possibility of designating certain personal or real property to pass to specified indi-viduals
■The ability to effect transfer tax planning through the use of certain legal interests and testamentary trusts. Testamentary trusts are trusts established by a will. They only operate after the testator passes away.
■Wills have the ability to tailor the estate as the testator wishes. For example, a will can allocate the payment of all administrative expenses to specific bequests instead of pay- ing the expenses from the residue of the estate (what is left over after specific bequests are made).
18
Q
What is a complex will?
A
Involves transfer/estate tax planning
Includes testamentary trust
19
Q
What is a will codicil?
A
Amendment, update to will
20
Q
What are the main characteristics of a testamentary trust?
A
Can be revoked by testator any time before death
Pass under testators will (subject to probate)
not subject to gift tax (because transfer occurs @ death)
allows more flexibility for principal and interest distributions than possible by direct bequest in will
can contain POA provisions to allow beneficiaries some control over the property
no income tax savings to grantor during lifetime, included for estate tax purposes upon death
21
Q
Define conservatorship
A
Fiduciary relationship to manage investments for example, where title is not transferred
22
Q
What are the main characteristics of revocable trust?
A
Remains unfunded and useful for incapacity planning
Assets avoid probate if funded before death
23
Q
What is a living will
A
Suspension of medical care if terminally ill, as determined by a physician
does not appoint decision maker, just lays out directives
24
Q
What is the trust rule against perpetuities?
A
21 yr limit on how long most trusts may last after death of grantor
25
many reasons the grantor may wish to establish a trust:
This is when grantor designates themselves as both trustee and beneficiary
■ To take advantage of the flexibility or ability to benefit one or more desired beneficiaries
■ To take advantage of the management or investment expertise of the potential trustee
■ To avoid probate at the grantor’s death
■ To help protect the grantor’s assets from creditors
■ To achieve income, gift, or estate tax savings
26
Trusts are generally categorized according to:
the powers retained or relinquished by the grantor; the date at which the trust becomes operative; and the income taxation (income payout requirements) of the trust
27
What is a simple trust
Trust required to pay out income to beneficiaries at least annually but does not distribute any principal or corpus.
and cannot distribute to charity
28
What is a trust sprinkling provision
Trustee allowed to distribute proceeds to multiple beneficiaries
29
What is the purpose of a spendthrift clause within a trust
Eliminates creditor claims on beneficiary interests in trust
30
what are the main characteristics of durable power of attorney
is effective until revoked, or terminated by death or the terms of the power, but is not terminated by incapacity.
practical alternative for caring for the property of incapacitated clients
may be limited or unlimited (exercise all of principal's legal powers)
all powers able to be revoked by principal
less expensive than conservatorship or living trust
31
what are the main characteristics of prenuptial agreements?
often implemented between prospective spouses
require full disclosure of spouses current assets
involves relinquishment of marital property rights in death or divorce
32
what is a springing power of attorney?
activated upon occurrence of a designated event (i.e. incapacity or disability)
nonspringing means activated instantaneously
33
what are main principles of general power of attorney?
1. The agent's powers are limited to those specified in the written document.
2. In most states, the agent's powers end when and if the principal becomes legally incompetent, incapacitated, disabled or dies.
3. does not take title to property
34
what type of trust avoids probate?
anything pre-funded before death (not testamentary)
35
what types of gifts are excludible from tax/deductible?
```
education
medical care
property settlement from divorce
use of annual gift tax exclusion
qualified charity
spousal gifts
```
36
what is the annual gift tax exclusion?
$15k
must be gift of present interest, meaning the donee has right to use gift immediately
only excluded from donor's gross estate if gift made over 3 yrs before death
37
When must IRS form 709 (gift tax return) be filed?
4/15 of year following when taxable gift was made
gifts above $15k exclusion
gift of future interest given
gift splitting among spouses in common-law state
tot present interest gift above $152k made to noncitizen spouse
(cash does not come out, just a recordkeeping system documenting use of applicable credit)
38
what is the gift tax lifetime exemption amount/applicable exclusion amount?
shelters $11.4M in taxable gifts (can also add the $15/spouse annual exclusion)
gift tax applicable credit amount is $4,505,800
39
what are the 3 important transfer tax reasons to make a lifetime gift?
exclude post-gift appreciation in transferred property from donor's gross estate
use shelter of gift tax annual exclusion to reduce donor's gross estate
remove cash used to pay gift tax from donor's gross estate
40
what is a net gift? and what are the requirements?
donor and donee agree in advance that donee is responsible for paying any gift tax due
- only made if donor has completely used up allowable lifetime applicable credit amount
- donor's gross estate must include amount of gift tax paid by donee on net gifts made by decedent within 3 yrs of death
- gift tax paid by donee resulting from net gift may be credited against donor's estate taxes
41
what is a reverse gift?
appreciated property gifted to donee, then transferred back to donor via donee's will, receiving stepped up basis if transferred back 1 yr or more later
42
what is the formula to calculate donee's adjusted basis on gift of appreciated property?
= donor's adjusted basis
| + ((unrealized appreciation / (FMV-annual exclusion used) * gift tax paid)
43
explain the portability of the gift tax lifetime exemption amount
surviving spouse can use any portion of a deceased spouse's lifetime exemption amount that remained unused when the predeceased spouse died
44
how are stocks and bonds valued for gift tax purposes?
avg of high and low trading price on date of gift
45
what are the 4 main components included in gross estate?
1. property owned at date of death
2. interests in property where decedent has retained right of control or beneficial enjoyment
3. certain property the decedent gifted within 3 yrs of death
4. gift tax paid on any gift made by decedent within 3 yrs of death
46
what are the 3 situations that will cause the death proceeds of a life insurance policy on the decedent's life to be included in the gross estate?
1. incidents of ownership (ability to change beneficiary, surrender/cancel policy, assign policy, etc.)
2. proceeds are payable to decedent's estate
3. decedent has made a gift of the life insurance policy within 3yrs of their death
47
what are the main advantages to establishing an ILIT?
1. avoid probate on trust assets
2. flexibility in distribution of assets to trust beneficiaries
3. management expertise of independent trustee
4. removal of life insurance death proceeds from decedent-insured's gross estate
48
define funded ILIT
trust that hold title to life insurance policy and also income-producing assets such as securities that may be used to pay ongoing policy premiums
49
define unfunded ILIT
grantor gifts cash to the trust each yr to pay the premiums on the policy
50
what is the adjusted gross estate?
gross estate
-
funeral expenses
admin expenses in settlement
unpaid mortgages and other claims against estate
casualty losses incurred during period of administration
51
what is the main difference between the federal gift tax model and federal estate tax model?
```
gift = tax-exclusive system
estate = tax-inclusive (i.e. estate tax calculated on all assets in taxable estate)
```
52
what is the max federal estate tax rate?
40%
53
to claim marital deduction, what 2 circumstances must be in place?
surviving spouse us resident at time of decedent's death, has been resident at all time since death, becomes us citizen before federal estate tax return filed
property passes to surviving spouse through qualified domestic trust
martial deduction reduced by any estate liabilities (i.e. death tax or mortgage)
54
what 3 requirements must be met to qualify for the estate tax marital deduction?
1. property included in decedent's gross estate
2. property must pass to decedent's surviving spouse
3. interest passing to surviving spouse must not be terminable interest
55
define terminable interest
interest ending on event or contingency
56
define B (bypass) trust
trust that provides up to 11.4M taxable asset base contributed up to applicable credit amount when first spouse dies that is exempt from estate tax
from there, the surviving spouse is able to receive income from trust and use for HEMS (health, education, maintenance, support), but then this amount is not included in the surviving spouses estate upon their death
does not qualify for marital deduction
57
what is a qualified terminable interest property trust (QTIP) - C trust?
terminable interest left to surviving spouse and still qualifies for marital estate deduction
surviving spouse gets initial benefit of income and qualified corpus for HEMS expenses, then, upon surviving spouse's death, passes back to initial decedent's children, for example
election on form 709 estate tax return
spouse generally not given POA
generally comes with a spendthrift provision and protection against surviving spouse's creditors during lifetime and death
58
what are 5 requirements for a trust to be treated as a qualified domestic trust?
1. at least one trustee must be US citizen or corp
2. noncitizen surviving spouse must receive all trust income
3. 4. trustee must have right to withhold federal estate and income tax on distributions of corpus and income to the surviving spouse
5. executor must make IRS form 706 election to qualify
59
what is a split interest gift?
2 parts - interest and principal
| part goes to noncharitable beneficiary, the other goes to charitable beneficiary
60
what are the key differences between a CRUT (charitable remainder unitrust) and CRAT (charitable remainder annuity trust)?
CRUT pays fixed percent of trust assets, CRAT pays fixed dollar amount
CRUT allows for additional contributions of property
CRUT is more flexible
both have 5% payout rule and income tax deduction afforded (PV of remainder interest received by trust beneficiary)
both irrevocable
both require he present value of the remainder interest must be at least 10% of the initial fair market value of the assets transferred to the trust
61
define charitable lead trust
reverse of charitable remainder trust
provides annuity payment to charity during term, with remainder passing on to noncharitable beneficiaries
most likely person to implement is highly wealthy person who doesn't need immediate income
if grantor trust setup - upfront deduction of PV of future interest payments, however each year's payments are taxed
if non-grantor - no present deduction, however can deduct each year's contribution to charity
62
which type of trusts permit additional contributions after inception?
unitrust
63
what is a qualified disclaimer?
method to transfer property from decedent to someone else (not beneficiary) without triggering taxable gift
a way to correct an inefficient disposition of property by the decedent
must be in writing and filed with the executor
disclaiming party cannot have previously benefited from interest being disclaimed
disclaiming party cannot direct disclaiming interest to other parties
must be made within 9 mo of creation of the interest
64
what is a main consideration when electing the alternative valuation date of a decedent's property?
marginal estate tax rate vs. beneficiary's marginal income tax/capital gains rate
65
what is the homestead exemption?
protects property loss from claims of unsecured creditors
66
when can the AVD not be used for estate taxes?
estate tax base < 11.4M
| when all assets pass to the surviving spouse and qualify for the marital deduction
67
what is the deferral period for installment payments under section 6166?
The estate tax, plus installments of interest on the unpaid balance, are payable in equal annual installments over a maximum of 10 years following the 5-year deferral.
68
```
define the main sections for estate planning after death
303
6166
2032
2032A
```
Section 303 addresses stock redemptions taxed as capital gain rather than a dividend (ordinary income) - (must be 35%+ of adjusted gross estate).
Section 6166 provides an election to pay the estate tax in installments (must be 35%+ of adjusted gross estate).
Section 2032 covers the availability of an alternate valuation date.
Section 2032A allows a special use valuation of real estate (must be 50%+ of adjusted gross estate).
69
what's included in the probate estate?
all property that passes by testate or intestate succession. This includes property in the decedent's name alone, the decedent's interest in property held as tenants in common, and insurance proceeds payable to the estate. The probate estate also includes the decedent's half of any community property.
70
What are the characteristics of a self-canceling installment note (SCIN)?
To be effective, a self-canceling installment note must reflect a risk premium to compensate the seller for the possibility of cancellation.
A seller who accepts a self-canceling installment note may require collateral for the note without jeopardizing the estate planning advantages of the SCIN.
transferee may pay more than FMV of asset transferred if transferor lives longer than expected term
At the seller's death, the present value of any remaining self-canceling installment note balance is excluded from the seller's gross estate, but unrecognized gain is included on the estate tax return.
A self-canceling installment note is a debt that ordinarily is extinguished at the seller's death.
71
what are the asset valuation rules for an estate?
alternative valuation date 6 mo from date of death
applies to all assets, except wasting assets (annuities, notes, patents that must be valued at date of death) and assets disposed after date of death, but before AVD (valued as of date of disposal)
cannot pick and choose which assets AVD applies to
72
what type of ownership is only permitted to spouses?
tenancy by the entirety
| community property
73
what happens if someone dies without a will?
real property - law of state located
personal property - law of decedent's home state
primary spouse decision > children equal shares > state
nothing passed to friends, associates, relatives, or charity
74
how can ancillary probate be avoided?
transfer real estate into revocable trust
| gifting property or selling real estate
75
What comprises a valid will?
will-maker at least 18yrs old
will-maker of sound mind (testamentary capacity)
Absence of undue influence
Absence of fraud
76
what are the 3 primary types of wills?
handwritten (holographic)
oral (nuncupative)
formal (statutory)
77
what are the 2 ways property can be distributed in a will?
```
per stirpes (by the roots) - members of a class/generation inherit property proportionally
per capita (by the head) - equal distribution amongst all individuals
```
78
what are the 3 types of interest transferred?
outright - legal and beneficial ownership
legal - title only
beneficial - economic benefit
79
what is the benefit of a crummey minor's trust vs a 2503(b) or (c) trust?
income distribution and corpus (principal) distributions at age 21 are not mandatory
80
what basis is used in the following situations if the donor's adjusted basis is less than the FMV of the asset gifted? double basis rule applies
sold between adjusted basis and FMV - no gain/loss
sold below range - adjusted basis to calc loss
sold above range - FMV to calc gain
no adjustment made for gift tax paid under double basis rule
81
what is the holding period for gain/loss basis of gifted property?
gain - date donor acquired property
| loss - date of gift
82
what type of property is best to select for a gift when donor wants to minimize estate taxes?
property with low present value, but high appreciation potential (i.e. low gift tax, high estate tax value)
83
what are the AVD requirements?
estate tax return filed
election made on form 706
value of gross estate and related liability must be less using the AVD than on DOD
84
what things are deductible from the gross estate?
```
funeral expenses
admin expenses
unpaid mortgage
debts and unpaid taxes
losses incurred administering estate
charitable contributions
transfers to surviving spouse
state death tax
```
85
when is estate tax return due? form 706
9 mo after death
| 6 mo extension permitted
86
What basis is used in the following situations?
1. receipt of property from decedent
2. deathbed gift
3. JTWROS - survivor's share
4. community property
1. FMV at DOD or AVD
2. donor's basis
3. portion included in deceased owner's gross estate receives step-up in basis to FMV (added to survivor's basis)
4. both spouses halves receive stepped-up basis to FMV at death of first spouse
87
What are Adjusted taxable gifts
taxable gifts made after 1976 that are not included in the gross estate.
88
when are dividends included in the gross estate?
declared and payable to stockholders of record on or before date of death
89
what part of a gift is included in the gross estate?
gift tax, not actual gifted amount
only included if paid within 3 yrs of death
known as gross-up rule
90
what vehicle should be used if decedent wants to avoid probate and reduce value of gross estate?
irrevocable trust
91
what is a nondurable power of attorney
does not survive principal's incapacity
92
what is the difference between power of attorney and appointment?
attorney - right to act in principal's place
| appointment - right to name new owner of property
93
when are below market (gift) loans not taxable gifts?
loan < $100k and investment income < $1k
94
how is the gift loan treated if loan not above $100k, but investment income is above $1k?
gift amount is the lesser of
federal interest - gift loan interest
investment income
95
what is crummey power?
lapsing power of attorney that allows trust beneficiary to withdraw trust assets for a limited period of time
allows ordinarily future interest gift to be converted into a present interest, qualifying for the annual exclusion
just having the right to make withdrawals is sufficient
annual withdrawal limitations are the greater of 5% of value of property held in trust or $5k - "5/5 lapse rule"
if there are multiple beneficiaries in the trust and the holder either releases POA or lets the power lapse, this is treated as a gift made
96
how is power of appointment treated for estate tax purposes?
if POA limited to ascertainable standard (HEMS - health, education, maintenance, support), not included in gross estate
if right to exercise requires approval of holder AND someone else, not included (because limited POA)
if right to exercise is limited to the 5/5 power (greater of 5k and 5% trust assets), not included (must be noncumulative - cannot carry to next year if didn't use in CY)
97
what are the 3 types of trust interest?
income
remainder (vested/nonforfeitable, contingent)
reversion
98
when is trust interested created for revocable and irrevocable trusts?
irrevocable - upon inception
| revocable - once trust becomes irrevocable (i.e. DOD of settler)
99
what is a complex trust?
any trust that's not a simple trust
100
what is a dynasty trust?
| health and education exclusion trust?
passes life insurance policy proceeds to granchildren, avoids GSTT to pass substantial wealth
used to pay grandchildren education and medical expenses, free of GSTT and gift tax
101
what is general power of appointment?
holder can appoint income/principal to himself, his creditors, his estate, or his estate's creditors
102
what are the primary differences between section 2503b and 2503c trusts?
In a Section 2503(b) trust income must be distributed annually. In a Section 2503(c) trust, income may be distributed or left in the trust to accumulate.
One way to remember this is that 2503(c) trust distributions are made "as the trustee c's fit." A 2503(c) trust gives control of the trust assets to the beneficiary at age 21 according to federal law. In a Section 2503(b) trust the trustees has no discretion and income must be distributed annually. However, a 2503(b) trust allows the donor to stipulate under what conditions the trust will end. For example, 2503(b) trusts can delay the termination of the trust past age 21.
103
what happens to trust assets when grantor of a revocable trust dies?
receive a stepped-up basis and are included in the grantor's gross estate.
104
what is a QPRT?
allows grantor to pass ownership of asset to next of kin, but still can live in residence for period of time
The taxable gift will be based on the fair market value of the house (on the date of transfer) less the present value of the right to live in the house.
great strategy for vacation homes and other residences expected to appreciate significantly
If the grantor dies during the trust term, the entire value of trust property is included in the grantor's gross estate.
105
What are GRAT/GRUT's?
grantor receives periodic interest payments, give principal to beneficiaries at end of term
taxable gift upon establishment - The current value of the gift in the case of a GRAT or GRUT is the fair market value of the assets transferred less the present value of the income interest retained by the grantor.
only beneficial if grantor survives the duration of the trust as assets then excluded from grantor's estate
GRATs and GRUTs are remarkable because the value in the gross estate is only the value of the remaining payments. All other donor-retained trusts include the entire value of the trust property if the donor dies while the trust is in effect.
difference between the two is that GRUT's are indexed to a percentage of the FMV of the trust assets, so would be less ideal than GRAT during period of appreciation
106
when are life insurance proceeds included in gross estate?
Life insurance is included in the decedent's gross estate if the decedent gifted the policy within 3 years of death.
107
what does overqualifying the estate mean?
first decedent spouse basically uses too much of the marital deduction at death
108
A qualified domestic trust (QDOT) is used
to qualify property for the marital deduction when the surviving spouse is not a U.S. citizen.
At least one trustee of the QDOT must be a U.S. citizen or U.S. corporation. A QDOT is a type of marital trust where all income must be distributed to the surviving non-U.S.-citizen spouse each year. The QDOT treatment can be elected by the executor of the decedent's estate.
109
disadv of outright bequest
testator who makes an outright marital bequest has no control over how the bequest is handled. The surviving spouse could easily spend the entire bequest foolishly or invest it in extremely risky or otherwise poor investments. In addition, when property is transferred in this manner, there is no protection from the surviving spouse's creditors, either during his or her lifetime or at death. The testator cannot be sure that the surviving spouse will provide any benefits to the testator's children from his/her prior marriage.
110
how many life insurance policies must be purchased if a cross-purchase agreement uses this funding method?
N * (N-1)
premiums not deductible and life insurance proceeds not included as taxable income
used for closely held businesses and partnerships and assist with establishing business valuation
guarantees market for owner's interest and protects from outside ownership
cross purchase more flexible (owners can change ownership allocation upon subsequent purchase of decedent's share)
cross-purchase should be selected if the surviving partners expect to sell their interests during their lifetimes because they receive a HIGHER BASIS
entity agreement is more equitable (partners do not purchase the policies on one another, which would lead to age-based pricing and not as equal)
only one per partner required if an entity agreement is used as an alternative
111
What are the main business transfer valuation discounts?
Minority interest
Lack of marketability
Blockage (large block of shares harder to sell)
Key person
112
What are are potential advantages of transferring an asset by an installment sale?
Gain will be delayed and recognized gradually over the installment period.
Property can be passed to family members with lower tax consequences.
The buyer can defer some or all payments until a later date.
113
if decedent dies during the period of the installment term, how much would be included in his gross estate?
The unpaid principal balance due on the installment note plus interest accrued from the date of the last payment until the date of death would be included in decedent's gross estate.
If decedent were to survive the five-year installment term, none of property value would be included in the estate. Notice that all appreciation of the condominium after the sale will also be out of his gross estate.
114
what are the conditions for use of the 2032A special use valuation?
determination on whether property can be valued at current value, rather than highest and best use
elect on form 706
value of property at least 50% of gross estate
value of real estate at least 25% of gross estate
decedent/family member must have been material participant in business for 5 of last 8 yrs
if property is sold to a non-family member or qualified use is discontinued within 10 yrs of decedent's death, estate tax savings may be recaptured
115
If the executor makes a QTIP election,
the property subject to the election qualifies for the unlimited marital deduction in the decedent's estate. A drawback to making the election is that the property will be included in the surviving spouse's gross estate to the extent the surviving spouse does not consume it during life.
116
what is the amount of gift calculated on a life insurance policy?
interpolated terminal reserve + premium paid during the current year prior to the gift being made
117
main characteristics of a family limited partnership
senior family member gifts LP interest to younger member over time and retains ownership and control of GP interest
interested transferred by gift, no need to secure transfers
118
what is a better alternative to having life insurance proceeds go to your estate?
ILIT - protection from creditors and solves estate liquidity issues
