Convert trad IRA to a legacy life ins. per Ed Slott
Can anyone explain Ed Slott’s approach to use trad IRA distributions and buy life-insurance with the proceeds for future legacy of family members and thus save on taxes?
One CLU writes: [i]I can post an analysis, complete with all the NUMBERS, of a “withdraw from IRA, buy life ins in ILIT” case, where the numbers demonstrated more net wealth to heirs than in the “do nothing” baseline. [/i]
Wouldn’t such NUMBERS be a very rough estimate, sort of predicting the past? 🙄
See here one ILIT option:
https://lifecenter.minnesotalife.com/library/public/files/pdf/69923-4.pdf
Permalink Submitted by Bruce Steiner on Tue, 2009-04-14 22:41
The two are independent. It generally makes sense to take distributions no faster than required. If you need life insurance, you should buy it. If you don’t need life insurance, it’s essentially an investment decision.