Podcast Center
Video Center
Webcasts
Resource Center
Events
April 12, 2013 at 10:29 AM
April 15th is the end of tax season. It also marks the beginning of the season for calling on accountants as centers of influence. Why? It’s the time of year when they are most up to date on their clients’ finances.
This year, however, it is particularly important to get in touch with tax advisors. The passage of the American Taxpayer Relief Act of 2012 (ATRA) means that many clients’ estate plans and insurance needs may have changed and require review.
ATRA increased the estate tax exemption to $5.25 million for individuals and, with portability, $10.5 million for married couples. The exemption is also indexed to inflation. In addition, unlike other recent tax acts, ATRA has no expiration date, which makes it as permanent as any tax legislation can be.
The ATRA increase to the estate tax exclusion significantly reduces the potential future estate tax liability for many taxpayers. As a result, many clients may no longer need as much life insurance to pay estate taxes. These unneeded policies often have hidden value and can represent outstanding prospects for life settlements.
See also: Plenty of life settlement opportunities, post fiscal cliff
Many accountants remain unaware of life settlements as an alternative to the lapse or surrender of a policy. Introducing them to or reacquainting them with life settlements can be a great door opener for you — and a great way for them to be of added value to their clients. Sharing information about settlements is a terrific way to differentiate yourself from the competition.
