Survivorship Life: Also called second-to-die insurance
, survivorship life insurance covers the lives of two people and pays benefits only after both people have died.
New York, says this private split-dollar technique is most tax-efficient when funded with a second-to-die insurance
My wealthiest client, who cannot seem to make what he considers big financial decisions without the "OK" from his banker, tells me, after I have presented him with a second-to-die insurance
strategy, that he thinks the idea is a great one but is concerned that in hyper-inflationary times, this would become a bad investment.
Survivorship life insurance, also known as last-to-die insurance or second-to-die insurance
, insures two lives, and pays a death benefit after the death of both insureds.
New Developments Affect Second-To-Die Insurance
Policy Products and Planning," Howard Saks, Estate Planning, November/December 1990, pp.
A profit-sharing plan (PSP) could purchase second-to-die insurance
In Letter Ruling 9745019, this rationale was extended to a properly structured second-to-die insurance
More recently, PLR 9745019 concludes that a collateral assignment, split-dollar agreement between a husband, wife, and an irrevocable trust will not result in the inclusion of the proceeds of a second-to-die insurance
policy in the estate of the last to die of the insureds.
Premium payments for the second-to-die insurance
should come from income generated by the family partnership.
For example, second-to-die insurance
is basically a permanent product.
Married couples often buy second-to-die insurance
for the trust, McDonald said.