What would be the best estate planning strategy to recommend for the life insurance policy? A. Gift the policy to an irrevocable life insurance trust (ILIT) B. Continue to pay the premiums and keep the policy C. Withdraw the cash value and allow the policy to lapse D. Sell the policy to a viatical settlement company at a price that is equal to 75% of the death benefit
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A. Gifting the policy to an ILIT can be a good strategy if the individual wants to remove the policy from their taxable estate and potentially provide liquidity to pay estate taxes. However, this strategy requires giving up control over the policy. B. Show more…
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