On January 27, 2020, Jason Trenton was quoted in AG Asset Advisory's blog regarding tax law changes that could impact life insurance needs.
According to the article, the tax law that was passed at the end of 2017 raised the estate tax exemption to approximately $11 million for individuals and $22 million for couples (until 2026). This boost in the exemption could mean that those who bought permanent life insurance for the purpose of one day paying estate taxes likely won't have an estate tax bill to pay. In that case, their insurance policy may have far more cash built up in it than necessary.
"The tax overhaul that occurred in 2017 has been a catalyst for many of our clients to revisit their estate plans. This has created an opportunity to substantially decrease their overall tax exposure," said Trenton. "In addition, there can be tremendous savings by evaluating their current insurance and determining if their policies still make sense. Many of these were designed to pay for estate taxes. With the increased exemption amount and some robust planning, we are finding this to be less of a necessity. The best result is driven by a comprehensive review with a coordinated team."