Family Limited Parterships vs. ILITs: Choosing Which Entity To Own Life Insurance

The popularity of the irrevocable life insurance trust is well documented. Billions of dollars have been gifted by estate owners to single life and survivorship life irrevocable trusts to help fund the payment of federal estate taxes. Yet, a number of disadvantages revolving around lack of flexibility and lack of control discourage the use of […]

Bankruptcy Protection for IRAs (YES) vs. Inherited IRAs (NO)

In 2005, President Bush signed into law the Bankruptcy Act of 2005. The Act extended significant bankruptcy protection to IRAs by exemption and exclusions of certain amounts from a bankruptcy estate.   Contributory IRAs and Rollovers / Direct Transfers from Employer Qualified Plans   The exemption for contributory IRAs is generally limited to an aggregate […]