This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Estate Tax: When Life Insurance Makes You Look Rich

Life insurance counts as one of your assets even though you had to die for the benefit to be paid out!

Don’t have $1 million? You still may need to worry about the Minnesota estate tax, which applies to persons holding more than $1 million in assets at death. Why? Life insurance. Life insurance proceeds paid out to your beneficiaries at your death get added to your assets for the estate tax tally even though you personally never benefit from the life insurance.

Life insurance held on your life and owned by an irrevocable trust is treated differently, but that’s another story for another day. Most people own their own life insurance policies.

A sizeable life insurance is one more reason for spouses to consider a trust so as to preserve the $1 million Minnesota estate tax exemption for each spouse. Visit an estate planning lawyer for details that apply to your individual situation.

Find out what's happening in Minnetonkawith free, real-time updates from Patch.

©2012, 2013 Wittenburg Law Office, PLLC. All rights reserved.

Disclaimer: This Blog is for informational purposes only and is not to be construed as legal advice. If you have questions, please seek the advice of an attorney. An attorney-client relationship is not formed by reading this Blog. If you are interested in Wittenburg Law’s representation of you, you must contact Wittenburg Law for a determination of whether your matter is one for which Wittenburg Law is willing and able to accept representation of you.

Find out what's happening in Minnetonkawith free, real-time updates from Patch.

Bonnie Wittenburg, Wittenburg Law Office, PLLC, 601 Carlson Parkway, Suite 1050, Minnetonka, MN 55305  952-649-9771    bonnie@bwittenburglaw.com   www.bwittenburglaw.com

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?