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Tax traps to beware of with life insurance planning

September 12, 2023 | by Kushner LaGraize, LLC


There are many professionals involved with clients and their tax, retirement, estate, insurance, and investment planning. In the case of life insurance, it’s important to be on the lookout for tax traps before it’s too late. In this episode of the PFP Section podcast, David Kushner, CPA, interviews expert Lee Slavutin, MD, CLU to inform us of the issues we need to know. They discuss:

  • The 3 situations in which life insurance premiums are tax deductible and have little risks of being challenged.
  • What is the estate and income tax impact when an individual with a retirement plan that holds their insurance policy passes away?
  • What unintended consequences can happen when clients move policies around and change ownership? 
  • The 2 things you need to find out before clients get involved in a 1035 exchange.
    Valuation issues that arise when gifting a policy. 

For more resources related to this episode:

  • Use the Adviser’s Guide to Financial & Estate Planning Volume 1 as a reference with respect to life insurance planning.
  • Check out the AICPA’s Risk Management and Insurance Planning Certificate Program, that is also a step on the path towards becoming a CPA/PFS.

This episode is brought to you by the?AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy, and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the?CPA/PFS credential?program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program.

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Kushner LaGraize, LLC

Kushner LaGraize, LLC, is a full-service accounting firm located in Metairie, Louisiana, serving clients principally in the New Orleans metropolitan area.

Our most important product is personalized and prompt client service. This philosophy is reflected in the fact that every service we perform for each client has the direct, personal supervision of one of our partners. We take tremendous professional and personal pride in being responsive to our client’s needs. We are available when our clients need us, and often before they realize a problem exists. Handling potentially troublesome situations before they evolve into problems leaves a lot more time and energy to devote toward productive opportunities.

For more information on how Kushner LaGraize, LLC can assist you, please call (504) 838-9991.