Use RMDs to buy insurance policy
If I use RMD money to buy life insurance, is the cash value of the insurance policy considered part of the estate when calculating estate taxes.
If I use RMD money to buy life insurance, is the cash value of the insurance policy considered part of the estate when calculating estate taxes.
Permalink Submitted by Alan - IRA critic on Mon, 2021-12-27 21:00
Yes, if you own the life policy. However, if an irrevocable life insurance trust (ILIT) receives the proceeds, the cash value will not be in the grantor’s gross estate.
Permalink Submitted by Bruce Steiner on Mon, 2021-12-27 22:18
The result would be the same if the trustees invested the contributions in stocks, bonds, real estate, bitcoins, tulip bulbs, or any other assets.