If your asset base is sitting at $1 million, your family is just 3 doubling periods away from owing $1.5 million in estate taxes under current tax law. How long does it take for your asset base to double? It all has to do with the rule of 72. If you have been in the S&P 500 during the past 5 years, your asset base there has doubled.
We all know proceeds from your life insurance pass to your named beneficiary income tax free. But do proceeds from your life insurance count as part of your estate for estate tax purposes? The answer is "It depends". If properly structured, proceeds will avoid being counted as assets subject to estate tax.
Robert has the answers.