Over 90 year old

[ewrinc]

What is recommended for a 90 year old who has $300,000 from sale of a house? She does not need income and wants to leave the money to her family.

[Chandi]

The best vehicle for legacy building is life insurance.  If she is healthy you can use one third of it ($100K) and buy $767,959 of life insurance, guaranteed!

Does she have ltc and is that a concern?

Chandi

[The Tax Dude?]

Chandi,

 

Why must your response be about placing product with the client?  The client doesn't need the money.  I take that to mean she doesn't need LTC.  Furthermore, you don't know enough about her estate plan to recommend life insurance.

 

Regards,

 

Neil Johnson

The Tax Dude®

www.thetaxdude.com

taxdude@covad.net

 

 

[The Tax Dude?]

You might want to review your client's estate plan.  She may be able to gift the $300,000 without gift tax. 

 

Regards,

 

Neil Johnson

The Tax Dude®

www.thetaxdude.com

taxdude@covad.net

[Tad Borek]

You might want to review your client's estate plan.  She may be able to gift the $300,000 without gift tax.

 

A 90 year old has to consider their home state's Medicaid look-back issues before gifting such a large sum...gift tax is usually not the driving issue.

The life insurance post is pretty out-there. What company is writing $770k policies on individuals with <5-year life expectancies - for a single $100k premium?

To the OP - as Neil said this requires a look at this individual's whole estate plan - work with their attorney on that?

-Tad