LexisNexis® Legal Newsroom
Avoiding a Variable Universal Life Insurance Implosion

Most people purchase life insurance to protect their family when they passed away. Unlike term, universal or whole life insurance, where there is no financial market risk component, Variable Universal Life insurance (VULI) is subject to financial market risk. Combining something that is intended to be...

Combination Long-term Care Products

A recent Financial Planning Magazine article discusses new tax laws that may increase the popularity of combining life insurance and annuities with long-term care insurance. Long-term care ("LTC") insurance sales have been in a decline over the past several years. Many believe that...

Creditor Protection & Life Insurance

Evaluation of creditor risk and the development of a strategy for acquiring creditor protected assets is an essential element of every good estate plan. In an effort to provide financial security for a loved one upon death, certain creditor protection benefits exist for life insurance policies. New...

Insurance in an Irrevocable Trust for a Spouse in a Community Property State

Life Insurance is subject to estate tax if the insured owns it. One way to avoid estate taxes is for an irrevocable trust for the benefit of the children of the insured to be the applicant, owner and beneficiary of the insurance policy. But, under this solution, the spouse of the insured gets no...

Recent Guidance on Life Insurance Payments in the Form of Viaticals

The Background A "viatical" is a contractual arrangement in which an investor buys a life insurance policy from an insured (or, perhaps, another) for a negotiated purchase price. The investor generally continues to pay the premiums on the policy and is paid the proceeds from the insurance...

Tracking Down and Collecting Unclaimed Life Insurance

The most basic purpose of having a life insurance policy is to provide some assistance for loved ones when you die. Wealthier people sometimes use life insurance for estate planning , while most people expect the policies on which they have paid premiums for decades to help their heirs get by - or at...

What Does the Debt Deal Debacle Mean to your Life Insurance Coverage?

Many are feeling this week how the congressional quagmire has impacted their portfolios. One other impact that many may be unaware of is that the downgrade of US credit rating has changed the credit rating of major life insurance companies (see below). What action should you be taking to review your...

Troutman Sanders LLP: New York AG Expands Life Insurance Industry Probe

New York Attorney General Eric Schneiderman has issued subpoenas to at least nine leading life insurers to examine whether the firms have adequately ensured payouts on policies of deceased customers. The investigation is believed to encompass three areas of inquiry. The first is whether life insurance...

IRS Adds Flexibility to Trusts

As estate planning practitioners are well aware, IRC Section 2042 includes in the gross estate: insurance proceeds on the life of the decedent receivable by the executor; and insurance proceeds on the life of fhe decedent received by others, where the decedent possessed any incident of ownership...

The Rise of Stranger-Originated Life Insurance Lawsuits

In this Analysis, Brian T. Casey and Rachel B. Coan focus on "stranger-originated life insurance" or "STOLI"-- in which a life insurance policy is originated primarily or solely for the purpose of resale. They chronicle how the clash of the insurable interest requirement and the evolving...

How to Coordinate Your Life Insurance with Your Estate Plan

Life insurance can be a powerful tool in your estate plan . It can be relied on to help your surviving spouse or heirs when you're gone. If your estate is taxable, life insurance may be used to pay estate taxes and other expenses. As with any aspect of estate planning, the devil is in the details...

Minor children? Here are the steps you need to take to protect them

The importance of life insurance for parents with young children cannot be overstated. However, insurance is just one part of the story. To ensure your child's financial security, you need to properly plan for how the proceeds will be distributed to your child, as well as for how your child's...